5 Big Tech Stocks That Are Surprisingly Cheap

Business prospects for these five companies look good, and their shares are attractively priced.

“Cheap” and “tech stocks” typically don’t go together. But tech stocks are a bargain relative to the broad market now, says S&P Capital IQ. The 65 stocks that make up Standard & Poor’s 500 Information Technology index boast an average price-earnings ratio of just under 16, based on estimated 2015 earnings. That compares with a P/E of 16.5 for the broad S&P 500-stock index. What’s more, tech-sector earnings are expected to increase by 11% in 2015, compared with just 7% for the S&P 500. With that in mind, we set out to find tech companies with promising futures and bargain share prices. Here are five that look appealing. (Prices and related figures are as of January 22.)

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.