Technology

4 Big Tech Stocks Ready to Breakout and Trade Higher

In an ever-increasing and pricey stock market, the key for investors seeking potential gains is to find stocks that have either lagged their peers or stalled despite positive data and earnings. Even with the fact that markets are hitting all-time highs, the potential going forward for technology stocks is very positive. A new report from the technology and technical analysts at RBC uncovers four potential stocks that could prove to be big winners for shareholders.

These stocks not only have excellent earnings potential, but also technical charts that indicate that future gains could be at hand. While only suitable for aggressive growth accounts, these stocks could make a solid fourth-quarter splash.

F5 Networks Inc. (NASDAQ: FFIV) is a stock that many Wall Street analysts feel will continue to beat earnings expectations. It helps organizations seamlessly scale cloud, data center and software defined networking deployments to successfully deliver applications to anyone, anywhere at any time. These are the areas, along with security, in which analysts expect possible big orders. In addition, checks at this year’s VMWorld conference point to a number of incremental revenue drivers for F5 Networks, especially when related to VMware directly.

The Thomson/First Call consensus price target for the stock is $130.01. Shares closed trading on Friday at $126.66.

NVIDIA Corp. (NASDAQ: NVDA) remains Silicon Valley’s top graphics chip company, and many on Wall Street see its stock having the ability to soar over the next year. The company has used its ability to leverage past investments, with a more controlled spending structure ahead on unified, which enables strong cash flow that is allowing a focus on capital return, which is currently estimated to be $1 billion next year. Despite a strong move over the past month, some of the top tech analysts think the best could still be ahead, especially after trading sideways for the past six months prior to taking a leg up.

NVIDIA investors receive a 1.7% dividend. The consensus price objective is $21.09, and NVIDIA closed Friday at $19.79.

Rackspace Hosting Inc. (NYSE: RAX) caught Wall Street’s attention back in the spring when it said it was looking at strategic alternatives, which could mean a buyout or merger. At this point, with no suitors currently lining up, the company has continued to increase the focus on product development. However, Blue Harbor group continues to add to its holdings in the stock, and the position now accounts for 4.60% of the fund’s total portfolio. Other large hedge funds have also shown interest in the cloud hosting company.

The consensus price target for the stock stands at $41.35. Shares closed trading on Friday at $37.43.

SolarWinds Inc. (NYSE: SWI) posted outstanding third-quarter numbers and could be a stock that can really overachieve for investors, not only this quarter, but well into 2015. The company offers enterprise-class network management products, including SolarWinds Network Performance Monitor, which monitors and analyzes network performance metrics for routers, switches, servers and other simple network management protocol enabled devices. It also offers additional network management products for various network management issues.

The consensus price target is $48.88, and the stock closed very close to that on Friday at $48.31.

Aggressive investors should monitor these stocks for any price point pullback. With strong fundamentals, as well as excellent technical charts and momentum, they all could be big winners for patient technology investors.

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