Tech stocks haven’t been doing too well recently. Semiconductor stocks have been hit by the China trade war but even the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ), which represents the more broadly tech-oriented NASDAQ 100, is only up 11% year to date.
That’s the tricky thing about looking at tech stocks now. You don’t want to try to catch falling knives — stocks that are falling for legitimate reasons and will continue to fall. But you do want to find quality stocks that have sold off a bit but now represent bargains.
These 10 big tech stocks that pack a wallop fall in the latter category. These are great stocks that represent an array of different tech sectors that will continue to grow (if they’re growing now) or will rebound quickly once the markets settle down.
Salesforce (CRM)
Salesforce.com (NYSE:CRM) is the biggest — and some would argue the best — customer relationship management cloud-based enterprise software management company in the business.
CRM has transformed the way many businesses manage their sales information and customers details. And as one of the pioneers of modern-day CRM, salesforce has been able to stay ahead of the competition and expand its influence.
Now sitting at an impressive $107 billion market cap, it is certainly breathing the rarefied air of other big tech companies. And while it has competitors, its platform flexibility and focus are unique advantages.
It’s up 39% year to date, even after these down days, and there’s plenty left in the tank.
NetApp (NTAP)
NetApp (NASDAQ:NTAP) hasn’t suffered any of the tech troubles that have hit stocks in this industry largely because it is well placed in the middle of one of strongest long-term growth sectors of any technology.
NTAP is a cloud storage provider.
If the second wave of the digital revolution has revealed anything, it’s how powerful mobility has become with businesses, governments and consumers. The cloud makes all that possible.
And NTAP is one of the industry leaders. It’s not Amazon Web Services (NASDAQ:AMZN) or Microsoft Azure (NASDAQ:MSFT), but it is very good at what it does. And remember, many enterprise systems use two cloud providers for their data, one as the primary, and the other as a back-up. That gives NTAP two bites at almost every apple.
Its $20 billion market cap means its small enough to really benefit from healthy growth and the fact the stock is up 40% year to date, reflects that.
IAC/InterActiveCorp (IAC)
IAC/InterActiveCorp (NASDAQ: IAC) may not have the most memorable name, but its portfolio of tech companies’ encompasses a series of iconic names: Match.com, Tinder, HomeAdvisor, Angie’s List, Vimeo, The Daily Beast and Dictionary.com, just to name a few.
IAC has built a business that holds some of the biggest names in internet commerce today. Whether it’s publishing, video platforms or online dating services, each is a unique stream of income but offers IAC to slice and dice those names and offer them complementary services, growing customer value.
This model is unique to the web, since pulling this together in an analog world would be incredibly inefficient. The stock is up 62% year to date and is still selling at a price-to-earnings ratio of 38. That’s crazy.
CoStar Group (CSGP)
CoStar Group (NASDAQ:CSGP) has combined two of the hottest sectors in the market today into one interesting company — commercial real estate and online services.
Started in low-tech 1987, CSGP has been helping people find, manage and purchase commercial property in North America and Western Europe ever since. Now it has become a online platform of resources that not only include traditional commercial real estate but multi-family properties as well.
Commercial real estate is still a robust market and as housing prices rise with mortgage rates, multi-family housing demand is also increasing as potential homebuyers wait to see where the markets will land.
CSGP is up 29% year to date, even as the real estate markets have been tossed around. Also remember that Europe is also having a lot commercial real estate shuffling as Brexit negotiations continue.
Fortinet (FTNT)
Fortinet (NASDAQ:FTNT) is a key player in another tech sector that shows little sign of diminishing in the near future — cybersecurity.
With a $13 billion market cap, FTNT stock is no small player. And having been around two decades at this point, the company has built a reputation and a book of business around that globe that gives it significant advantage over johnny-come-latelys in this sector.
Whatever a company needs to protect, FTNT offers products to help — even a suite of cloud-based security products and crypto-VPN products.
It’s little surprise that FTNT is up 87% year to date and will continue this growth as we transition to more ‘smart’ devices and the Internet of Things.
GrubHub (GRUB)
GrubHub (NYSE:GRUB) is one of those companies that could not exist without the internet. Could you imagine a company that delivers food for restaurants sporting a $10.5 billion market cap in any other time in history?
But ours is not to question why, it’s to take advantage of a simple idea that scales beautifully with technology — and a smart management team that has expanded from its Chicago roots across the U.S. to London.
While there is still plenty of territory left to claim in the U.S., the move to the UK is smart because it gives GRUB a toe in the door to the European markets.
Up 62% year to date, a strong economy is wind in this stock’s sails (and sales).
Intel (INTC)
Intel (NASDAQ:INTC) is the leading chipmaker in the world. So, when chip stocks are getting hammered, it makes perfect sense that INTC is going to take some of those blows directly.
While the stock is off about 4% year to date, its 2.7% dividend almost brings it back to breakeven. Unfortunately, that isn’t exactly the kind of return that gets investors of any stripe excited.
But the fact is, INTC has a $200 billion market cap and is still a very competitive force in the industry. It isn’t going anywhere.
CEO Brian Krzanich was forced to step down in June and the search for a new CEO continues, but he was influential in developing the strategy that moved INTC off its PC-dependent market and into IoT and cloud-based tech. There’s still plenty to like when this sector turns around.
Microsoft (MSFT)
Microsoft now has an $833 billion market cap. This from the company that help usher in the personal computer with its DOS and Windows operating systems is a far different company than it used to be.
While its software is still dominant — now cloud-based subscriptions rather than software-based licenses — MSFT stock has been able to grow its business outside of its one-trick pony.
Its laptops are now very much respected as quality, attractive machines that can rival the best in the industry. But its Azure cloud services is where the growth is now.
As with its major cloud competitor Amazon Web Services (AWS), Azure is a powerful growth engine for MSFT stock. And Azure is growing even faster than AWS at this point. That trend is in place at least for the near future.
Up nearly 27% year to date, MSFT is a big tech company that is a 21st-century blue-chip growth stock.
Mastercard (MA)
Mastercard (NYSE:MA) may seem oddly placed in this tech article, but MA deserves its place in this list simply for the fact that it has successfully made the transition from global credit card company into an electronic payments beast.
We are not only transitioning to a cashless society and a borderless society, but also a frictionless society when it comes to payments. Buying across borders and currencies is now almost taken for granted.
And in emerging markets, where banks aren’t known for their stability, having access to cash from online resources is much more secure than the local financial institution. The point is, there is still plenty of growth left MA stock.
Its global reputation is something that few competitors can match, either with consumers or commercial customers looking for a reliable partner.
Up 35% so far this year, a recovering global economy is one of the best things that can happen for MA.
Adobe (ADBE)
Adobe Systems (NASDAQ:ADBE) has been around since 1982 and was one of the pre-tech companies that had a great niche before computers took over the world.
In the early days it struggled with transitioning its business model to one that could keep up with all the changes that were happening in the digital space. But in recent years, ADBE stock has really hit its stride and still has some of the most dominant brands in the digital marketing and media solutions space. Smart packaging of its tools as well as transitioning to cloud-based subscriptions have really helped revenue. And its 3D printing software is testament to its ability to stay on the cutting of design tech.
Up 40% this year so far, ADBE’s $122 billion market cap is evidence of its power and breadth in this important growth sector.
Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, 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.
