Deutsche Bank's Top Technology Stocks to Own for the Rest of 2014

Apple Inc. (NASDAQ: AAPL) has big things coming this fall, and investors are anticipating a solid last half of the year. Reports indicate that the company has placed orders for 70 million to 80 million of the 4.7-inch and 5.5-inch iPhone 6 units. That is a sizable increase from the 50 million to 60 million iPhone 5s/5c units Apple initially ordered last year.

Despite its huge presence, Apple is one of the most underweighted stocks by portfolio managers. That may change if earnings continue to climb and the new product introductions are as big as Wall Street expects. Investors are paid a 2.1% dividend. The Deutsche Bank price target is $105. The consensus target for the tech giant is $104.79. Apple closed Monday at $95.59.

EMC Corp. (NYSE: EMC) shares have rallied recently on news that Paul Singer’s activist hedge fund Elliott Management has accumulated a stake worth more than $1 billion in the storage giant. Many think the activist play is an attempt to spin-off and monetize the huge position in cloud software giant VMware in an attempt to provide additional value for shareholders. While the stake is significant, they certainly at this point can’t dictate terms to the company.

EMC pays shareholders a 1.7% dividend. The Deutsche Bank price target is $32, and the consensus is at $31.94. EMC closed Monday at $29.57 a share.

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Hewlett-Packard Co. (NYSE: HPQ) is trading at a very low nine times 2014 estimated earnings. The company has had a remarkable comeback under the leadership of Silicon Valley veteran Meg Whitman. Whitman’s most important point for 2014 is her plan to use free cash flow in order to reduce the existing debt, repurchase new shares and maintain the dividend payout policy. All of that is in the best interest of shareholders.

Hewlett-Packard’s share in 1Gigabit Ethernet fixed switching improved 10 basis points or one-tenth of 1% year over year, as it continues to benefit from its local presence and brand name (H3C) in China. Other U.S. vendors are increasingly challenged for new business in the region. Investors are paid a 1.9% dividend. Deutsche Bank has a $40 price objective, and the consensus price target is $36.36. HP shares closed Monday at $35.33.

Western Digital Corp.‘s (NYSE: WDC) market share in the total addressable hard disk drive market remains at a very impressive 45%. The company posted solid quarterly numbers, where revenue and earnings exceeded Wall Street expectations. Western Digital attributed much of the gain to the consumer electronics/gaming unit, which saw the biggest upside in its fiscal fourth quarter, shipping 10.9 million units, up 67% year over year.

Investors are paid a 1.7% dividend. The Deutsche Bank price target for the stock is $118, and the consensus figure is set at $111.63. The stock closed Monday at $102.10 a share.

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The name of the game at Deutsche Bank is stick with the large cap tech leaders for the rest of the year. This makes good sense for investors with more aggressive growth portfolios that have some money carved out to dedicate to technology.