The technology sector has roared ahead in 2017. However, it has been a lopsided effort, with much of the gains concentrated in a few well-known tech stocks such as Amazon.com, Inc. (NASDAQ:AMZN), Facebook Inc (NASDAQ:FB) and Netflix, Inc. (NASDAQ:NFLX).
While these stocks should continue to do well going forward, keeping your eye only on the sector’s giants will cause you to miss out on the high-reward opportunities in the small- and mid-cap spaces.
Smaller tech stocks can grow at eye-popping rates and, because of their agility, often are at the forefront of investing megatrends. Some smaller technology companies are very likely to end up becoming tomorrow’s dominant names.
Plus, don’t forget the potential for stock-popping buyouts. Larger tech operators that generate massive piles of cash need ways to both spend that money and boost their offerings, and thus are willing to pay large premiums to snap up these smaller players. Just this year, we’ve seen a variety of lucrative buyout deals for the likes of Xactly, Jive Software, RetailMeNot and ShoreTel.
So what overlooked tech stocks offer the best potential for long-term capital gains? Read on to learn about seven lesser-known players that really stand out to me right now.