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Red Hat

Red HatYou might think there’s no money in open source software, but think again. Red Hat (NYSE:RHT) and its trademark Linux software is in demand, and Linux offers a decent revenue stream for this mid-cap tech stock.

Growth: Red Hat has posted at least 15 quarters of year-over-year revenue growth (as far back as I cared to look), with 15% to 20% growth annually. RHT also has posted five consecutive quarters of EPS growth at a steady annual clip of 10% to 20% each year, give or take a bit.

Cash: Red Hat has zero debt and $800 million in cash and short-term investments.

Performance: RHT stock is up 12% in the last year, easily double the Dow Jones, and up 70% since early 2010 — triple the market.

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