Five promising tech stocks you may have overlooked

technology

In a late bull market, the biggest gains always seem to come from the tech sector, and yet, these great gains that so attract us also cause us to recoil in visceral shock at some of the valuations these stocks achieve. Everyone knows, for example, that Square (SQ) is an extremely promising stock. (You’ve been hearing it in this column, among other places, since shortly after its IPO.) But is it reasonable to buy stock in an unprofitable company trading at 91 times its projected 2019 earnings? And if not, does that mean it is reasonable to sell the stock, possibly to buy it back later at a more reasonable valuation? Alas, there’s simply no way of knowing the correct answer to either of these questions.

That’s why today we are going to focus on promising tech companies that have thus far evaded market insanity. That’s not to say they are cheap, because no promising company’s stock is cheap at this stage of a bull market, only that they haven’t yet been fully dragged away by the hype train.

Remember to treat these ideas as just that, ideas, and do your own research before making any investment decision.

Symbols: DLR EBAY JD MCHP PYPL
Julian Close

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.

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