Using Nasdaq as the proxy tech index, technology stocks have outperformed the broader market indices — Dow Jones Industrial Average and S&P 500 — so far this year.
Whether it’s semiconductor and software companies focused on expanding cloud-computer services or video game companies or even the devices that support these industries, the growth in tech stocks is a long-term trend.
The trick in a sector bull market is separating the quality tech stocks to buy from the pretenders. Mutual fund managers, investment banks, and individuals start to buy up tech stories rather than the performance, so as not to miss a triple or quadruple play.
But that type of hedge fund strategy — expect 80% losers and 20% big winners — isn’t the best way to go for individual investors. Finding the best quality companies and getting in on their growth when it’s at its peak is a much more productive strategy.
That’s why I’m talking about the seven best market-beating tech stock to buy below.