Please enable JavaScript to view the comments powered by Disqus.
Slide Show

1 of 14

13 Tech Stocks with Big Promise

Courtesy Nvidia

Whatever they’re selling, companies often aim to entice you with a dazzling vision of the future. Whether it’s a reimagination of the car, a new treatment for cancer or a robot that can operate more precisely than the human hand, the promise of a better tomorrow through technology can make true believers of us all.

Buying shares of these businesses can be lucrative, too. Since the last bear market bottomed, in March 2009, technology stocks in Standard & Poor’s 500-stock index have returned a total of 371%, or 22% annualized. Over the same period, the S&P 500 itself has returned 298%, or 19% annualized (figures include dividends).

Investing in technology is risky. Tech companies often succumb to competitive pressures as rivals pump out similar products faster and more cheaply. Other firms flop when their inventions turn out to be too far ahead of their time. And sometimes the emergence of new technologies renders their products obsolete. You may have to contend with steep valuations, too, as euphoria for new technologies sends stocks soaring far beyond what their earnings will ever justify.

Still, many of today’s tech leaders are riding high on more than Silicon Valley pipe dreams. The industry is humming with companies that are. We’ve listed 13 companies that are producing real sales and fast-growing profits and have immense potential to cash in on the future.

Share prices, returns and other data are as of January 31. Click on ticker-symbol links in each slide for current prices and more.

Revenues are for the past 12 months. Net income is based on earnings for the past 12 months. Estimated 2017 earnings growth is based on the current fiscal year. Price-earnings ratio is based on estimated earnings for the next four quarters. Sources: Yahoo, Zack's Investment Research.

View as One Page

Check Out

Kiplinger's Latest Online Broker Rankings

Advertisement