Wall Street is now recording fresh highs, with the S&P 500 at 2,550.64 and the Nasdaq composite at 6,587.25. And the best part- this bull run is set to continue in the new year, according to Credit Suisse. The firm is predicting that the S&P 500 will rise by 13% by the end of 2018 from Monday’s close. “Our market views are predicated on a supportive economic backdrop, with benign recessionary risks and a pickup in near-term indicators,” says strategist Jonathan Golub.
But not all sectors are created equally, and Credit Suisse places tech firmly in the lead: “Technology is our favorite sector despite elevated multiples. Fundamentals remain strong given the group’s exposure to secular growth themes in subgroups such as internet and software-as-a-service.”
Bearing this in mind, we decided to look for 3 of the hottest tech stocks set up for stellar growth over the next few months. To find these stocks we turned to the TipRanks innovative stock screener. We filtered the database of over 5,000 stocks to only tech stocks with a ‘Strong Buy’ consensus rating from top analysts.
This nifty tool ensures that you are only looking at stocks with significant Street support. Crucially, we also scanned for stocks with big upside potential from the current share price.
Now let’s take a closer look at just three of these stocks:
1. Box Inc (NYSE:BOX)
BOX says it “empowers enterprises to revolutionize how they work by securely connecting their people, information and applications.” And this fast-growing cloud content company is already up by 25% over the last year. Top analysts are predicting serious further growth of 33% for the next 12 months, from the current share price to over $25.
Also check out how all six recent analyst ratings on BOX are a buy. Notably the most recent rating comes from Canaccord Genuity analyst Richard Davis. He calls BOX “the leader in next-generation content management” and says the stock is “a good bet in small/medium-cap software.” This is big news because TipRanks ranks Davis #3 out of 4,696 tracked analysts. On BOX stock specifically, Davis has a very impressive 89% success rate and 25% average return. His $24 price target suggests upside for BOX of 25%.
2. Veeva Systems (NYSE:VEEV)
Veeva Systems Inc. is a leader in cloud-based software for the global life sciences industry. Like Box, Veeva also boasts straight buy ratings from top analysts in the last three months. These analysts believe the stock can rise over 22% from the current share price. Indeed, five-star Brent Bracelin of Keybanc recently wrote that he has “increasing confidence that VEEV remains on track to eclipse $1 billion in revenue within three years.” This is management’s target for 2020 sales.
Share prices slipped two months ago following fiscal Q1 results and forecasts that actually beat expectations. However, this means that now there is further upside to be gained as the stock recovers. Only recently, on October 5 top Canaccord Genuity analyst Richard Davis reiterated his VEEV buy rating with a bullish $70 price target.
3. Facebook Inc (NASDAQ:FB)
Social media giant Facebook still has strong upside potential according to top analysts. The average analyst price target stands at just over 14% upside from the current share price. And this is just the average share price. Many analysts are confident that the stock can reach $200 or $220 from current levels of $170.
Indeed, at the end of September, Deutsche Bank analyst Lloyd Walmsley boosted his price target on FB from $215 to $220 (28% upside). He sees “increasing signs of strength” for FB and called it his favorite large-cap internet name. Conversations with ad execs also resulted in Walmsley increasing his projected ad revenue growth rate for the stock to 42% from 39% in Q3 and to 32% from 30% in 2018.
In the last three months, the stock has received overwhelming Street support with 29 buy ratings vs just 2 hold ratings and 1 sell rating.