3 Breakthrough Tech Stocks to Buy Now

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Traders and investors alike are pointing to the recent market highs as a false signal, expecting the bottom to drop out of this stealthy rally at any time.

Sure, we agree that the market is likely to face some overhead pressure, but at the same time, a number of breakout tech stocks are likely to continue their trek higher.

Unlike the rest of the market, the breakouts we’ve been tracking are seeing an increase in their daily trading volume as the breakouts attract more buying interest. More widely, we’re seeing a growing number of pops that are driven by lighter volume. We avoid the lighter-volume “breakouts” as they almost always result in some backtracking.

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In addition to rising volume, we always like to see some form of pessimism (aka, the “Wall of Worry”) on breakouts, as it means big investors and analysts eventually will play catchup by either buying or upgrading shares, fueling even higher prices.

A recent scan of tech stocks produce a number of attractive targets. The table above shows our short list of potential breakouts in the space. Read on to get some targets for our three favorite prospects.

Breakthrough Tech Stocks to Buy Now: Microsoft Corporation (MSFT)

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Microsoft Corporation (NASDAQ:MSFT) shares have long been the neglected stepchild of the tech stocks kingdom — one in which Apple Inc. (NASDAQ:AAPL) would play the evil stepmother.

Regardless of how the company positions itself — and even regardless of its standout 2013-14 performance — MSFT continues to get called out by the media and pundits as a has-been of the technology world.

Frankly, we love the lower expectations as it makes it easier for MSFT to impress the market. With a new Windows release hitting the market later this year, we expect to see Microsoft flex its product muscle and give traders reason to follow through on the recent relative strength.

Look for shares to consolidate across the $48 mark before charging forward to match their all-time highs of $60 later this year. The rally will be fueled by the majority of analysts that have the stock ranked a “hold” or lower start to get nervous about being on the wrong side of this tech leader, causing them to upgrade their outlooks.

Breakthrough Tech Stocks to Buy Now: Red Hat Inc (RHT)

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Also in the software and operating systems subsector of technology is Red Hat Inc (NYSE:RHT). This open-source code company is active in developing everything from operating systems to cloud storage technology.

RHT shares have been on the move, almost doubling the returns of the Nasdaq Composite year-to-date. The performance has attracted some short selling lately as short interest has increased significantly over the past two reporting periods.

Shares have consolidated at $76 after a positive earnings report and appear ready to continue their trek higher to extend their new high territory toward the $90 mark.

Breakthrough Tech Stocks to Buy Now: Intuit Inc. (INTU)

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Rounding out what has turned into a list of software-specific tech stocks is Intuit Inc. (NASDAQ:INTU). The software developer specialized in financial management applications for everything from small-business management to taxes and personal finance.

Earnings and revenue haven’t been as positive as others in the technology sector; however, INTU has been making strides in developing applications for restaurant and hotel management, as well as incorporating a social media presence into its “Local” products to help small businesses manage marketing and other operational functions.

The strong product development line validates Intuit’s strong performance, with INTU netting a total year-to-date return of almost 12%. We expect the strong trend to drive prices to the $115 level before the year’s end.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/05/3-breakthrough-tech-stocks-to-buy-now-msft-rht-intu/.

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