The technology sector is known for its high growth potential. The need to constantly innovate and evolve to keep up with changing trends makes the industry very exciting. Against this backdrop, the latest hype created by artificial intelligence (AI) has sparked global competition among tech companies, which looks promising for the expansion of the industry.
Despite lingering macro uncertainty and high inflation, the tech-heavy Dow Jones US Technology Index and Nasdaq 100 (NDX) Index are up 35.6% and 28.3% respectively so far in 2023. Thus, the growing interest in AI should continue to support technology companies.
Leveraging the TipRanks Stock Screener tool, we shortlisted stocks that are likely to outperform market averages. These five stocks have received a strong buy rating from analysts and have a smart outperform score (i.e. 8, 9 or 10) on TipRanks. Additionally, analyst price targets indicate room for a 12-month gain of more than 20%.
Here are analysts’ five favorite tech stocks:
Pure Storage Inc (NYSE:PSTG) – Analysts currently see 33.5% upside potential for PSTG shares. Additionally, it has a smart score of ten. Enphase Energy (NASDAQ:ENPH) – The stock price forecast of $259.58 implies an upside of nearly 58%. ENPH stock has a smart score of eight. General Dynamics (NYSE: GD) – GD stock has an analyst consensus up 27.5% and a smart score of eight. Epam Systems (NYSE: EPAM) – The average price target for EPAM stock implies a consensus upside of 22.6%. Additionally, he has a higher smart score of nine. Intuit (NASDAQ:INTU) – The stock has an average price target of $504.20, implying upside potential of 22.1% from current levels. In addition, its Smart Score of nine is encouraging. The company released its fiscal third quarter results on May 23, after which 12 analysts rated the stock as a buy.
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