“Following recent weakness in social media and other tech related names, there has been increased rhetoric surrounding the ‘demise of Tech’ and the suggestion that tech has lost its market leadership position. In short, we believe this rhetoric is premature,” says Larry Adam, chief investment officer of Deutsche Bank’s Wealth Management Americas unit.
Indeed, the S&P 500 IT sector is still 28% higher over the past year. And looking forward, Adam expects full year tech earnings to rise by about 20% in 2018 and 11% in 2019.
With this in mind, let’s take a closer look at these 4 top tech stocks now:
OpenText (Nasdaq:OTEX)
Canada-based tech stock OpenText is surging right now. On a five-day basis, shares are up 4%. The company has just reported strong Q4 results, which more than compensated for the shortfall last quarter. Following the August 3 report, five analysts published OTEX Buy ratings.
“Solid Q4 provides redemption” cheered RBC Capital’s Paul Treiber (Profile & Recommendations) in his investor report. He ramped up his price target from $44 to $45 on August 3 (16% upside potential).
According to Treiber, “Strength was broad based and reflects OpenText’s product investments over the last several years.” Plus “management sees cloud revenue (+19% Y/Y Q4) accelerating, given expected demand for OpenText’s business network (e.g. electronic invoicing), OT2 (public cloud/SaaS), and private cloud / managed services.”
The risk/ reward is ‘attractive’ says Treiber- especially as OTEX continues to trade below peers. OpenText develops and sells enterprise information management (EIM) software. Using EIM, businesses can transform big data into actionable insights.
In the last three months, this stock has received 9 buy ratings. As a result it has a bullish Strong Buy analyst consensus. This is with a $45.11 average price target (16% upside potential).
