The New Year is looking to be a great year for small- and mid-cap stocks, especially ones characterized by stunning annual sales and earnings growth. 

So, as 2014 winds down, investors need to know where to buy to set themselves up for success in 2015. 

One sector that tends to perform consistently well is technology. Tech and biotech stocks are often exciting buys and can really boost one’s portfolio.

In particular, Ambarella Inc (AMBA) and Horizon Pharma PLC (HZNP) stand out as companies with strong earnings reports and promise for future growth.

Here’s more on why these two tech stocks are smart additions to any portfolio as we head into the New Year.

 Ambarella Inc (AMBA)

The first recommendation is a leading video-processing chipmaker, Ambarella Inc (AMBA). Ambarella develops semiconductor processing solutions for video, and AMBA products are used in high-definition (HD) video capture, sharing and display worldwide.

Ambarella Inc’s system-on-a-chip integrates HD video, image and audio processing, as well as system functions onto a single chip that delivers superior video and image quality and low power consumption. AMBA solutions are used in wearable sports cameras, automotive aftermarket cameras, Internet Protocol (IP) security cameras and camcorders in the camera market.

GoPro Inc (GPRO) is a major client, and the boom in drone quadcopters with cameras is also helping to boost Ambarella’s chip sales.

The fact that GoPro recently introduced new cameras with 4,000 pixel resolution, up from 1080 pixels, bodes well for robust chip sales in the upcoming quarters. In addition, Ambarella is also benefiting from President Obama’s recent call for funding to help local police departments buy wearable cameras.

In the third quarter, AMBA sales rose 42.8% to $65.7 million, up from $46 million in Q3 2013. Operating earnings soared 83.8% to $22.1 million, or 68 cents per share, compared to $11.1 million, or 37 cents per share last year. The analyst community was expecting sales of $62.3 million and earnings of 53 cents per share. So, Ambarella posted a 4.6% sales surprise and a 28.3% earnings surprise.

Looking forward, analysts are expecting Ambarella to report 92.3% annual earnings growth and 47.7% annual sales growth. Plus, analysts have recently revised their consensus earnings estimate 51.5% higher. As you know, such strong earnings revisions typically precede future earnings surprises. AMBA is a moderately aggressive buy.

Horizon Pharma PLC (HZNP)

Let’s take a look at a strong play in biotech. Based in Ireland, Horizon Pharma PLC (HZNP) is a specialty bio-pharmaceutical company focused on developing treatments for arthritis, pain and inflammatory diseases.

Horizon Pharma’s main marketed products are Actimmune, Duexis, Rayos and Vimovo. Horizon Pharma also anticipates that it will begin marketing Pennsaid, a diclofenac sodium topical solution in the U.S. in January 2015.

In early November, HZNP announced that third-quarter sales tripled, rising sales 211.6% to $75.1 million. Earnings surged to $25.3 million, or 24 cents per share, compared to a loss of $2.1 million, or 3 cents per share. Analysts were expecting earnings of 17 cents per share. So, Horizon Pharma posted a 41.2% earnings surprise.

Looking forward, the picture is even brighter for HZNP stock. The current consensus estimate is for Horizon Pharma to post earnings of 22 cents per share, up from a $1.56 per share loss in Q4 2013, and 214% annual sales growth. HZNP is a moderately aggressive buy.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.