Portfolio Managers Rotate to Old-School Tech Stocks: 5 to Buy Now

Last week saw some massive selling of momentum stocks that have been red-hot over the past year. Everything from the electric vehicles and solar-related stocks to SPAC conversions were absolutely hammered, not to mention the new-age companies that have big prospects but lose money consistently. While many hedge funds and mutual fund portfolio managers have moved to reopening theme stocks, in addition to energy and banks, one surprising shift is many are buying old-school legacy technology companies that have been around for years.

We decided to screen our 24/7 Wall St. research database for some of the top technology stocks being bought and found five that make sense for investors looking to move out of the momentum plays. While all are rated Buy at major Wall Street firms, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Adobe Systems

Shares of this high-profile legacy software company have really backed up some in price and are offering investors a solid entry point. Adobe Systems Inc. (NASDAQ: ADBE) operates in three segments: Digital Media, Digital Marketing and Print and Publishing. The Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote and monetize their digital content.

Top Wall Street analysts see the company benefiting from artificial intelligence, predictive analytics, automation bots, speech recognition and natural language processing and image recognition. Flagship products include Creative Suite, Photoshop, Acrobat, Premiere, Dreamweaver, Illustrator, InDesign and LiveCycle. PDF and flash technologies from the company have become industry standards and act as a platform for other Adobe products.

The Goldman Sachs price target for the shares is $580, while the Wall Street consensus target is $563.30. The final Adobe Systems stock trade on Friday came in at $440.83 a share.

Dell Technologies

Returning from private equity land has been good for this computer pioneer. Dell Technologies Inc. (NYSE: DELL) designs, develops, manufactures, markets, sells and supports information technology (IT) hardware, software and services solutions worldwide. It operates through three segments.

Infrastructure Solutions Group provides traditional and next-generation storage solutions, and rack, blade, tower and hyperscale servers. It also offers networking products and services that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences and accelerate business applications and processes. It also offers attached software and peripherals, as well as support and deployment, configuration and extended warranty services.

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