The year 2017 was a blockbuster for investors as all the three major indices indicating the health of the U.S. market closed at record levels. An improved economic data for GDP, steady job additions, a favorable Consumer Confidence Index, as well as factory activity data, kept investors optimistic about the economy.
Technology Sector in Particular
The Tech sector was one of the largest beneficiaries of this rally, with the Technology Select Sector SPDR ETF (XLK) registering a return of 32.2% in the last year, on top of a 12.9% gain it had registered in 2016.
In 2018, the sector will continue to benefit from increasing demand for cloud-based platforms, adoption of Artificial Intelligence (AI) solutions, Augmented/Virtual (AR/VR) reality devices, autonomous cars, advanced driver assisted systems (ADAS), as well as Internet of Things (IoT) related software and hardware.
Per the latest forecast provided by Gartner Inc. (IT) on worldwide IT spending, the independent research firm projects global IT spending to reach $3.7 trillion this year, reflecting an increase of 4.3% from $3.5 trillion projected in 2017.
Why Growth Stocks?
Growth investors look for stocks with earnings and revenue growth rates that are relatively better than the market. This investment strategy comes with its fair share of risks, but it also brings the exciting possibility of outsized returns — an end goal that every investor desires.
Growth stocks can be some of the most exciting picks right now, as these stocks can capture investors' attention, and yield big returns too. Today, we will discuss a few technology stocks, which performed well in 2017 and have the potential to grow in 2018.
Picking the Right Stocks
It's a daunting task to bet on stocks, which are currently undervalued, yet with high-growth potential. However, with the help of our new style score system, we have picked the stocks mentioned below that look promising based on their encouraging Zacks Rank and favorable Growth Style Score.
