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Quarter-End Insights

Our Outlook for Technology Stocks

High-quality large caps offer the most compelling valuations.

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  • Current near-term economic uncertainty is presenting a buying opportunity in higher-quality names.
     
  • In an environment of tightening corporate IT budgets, we would look to invest in attractively valued firms that sell mission-critical products with recurring revenue streams attached. The software industry is a natural hunting ground for firms with these characteristics.
     
  • Cloud-based services and mobile computing will continue to be major disruptive forces within IT. Hardware firms will be forced to adapt in a rapidly shifting landscape.

Grady Burkett does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.