Given the low interest rate environment and continuing digital transformation, Wall Street analysts believe Uber Technologies (NYSE:UBER), Verint Systems (NASDAQ:VRNT), and Zix Corporation (NASDAQ:ZIXI) have immense upside potential. So, we think it could be wise to scoop up these stocks. Read on for some details.Technology industry stocks plunged earlier this year as the investors rotated away from expensive tech stocks to quality cyclical stocks to capitalize on the economic recovery. However, quality tech stocks are again attracting investors’ attention in-part because the Federal Reserve recently stated that it will not raise interest rates until late 2023 given the transitory nature of current inflation. Consequently, the tech-heavy Nasdaq Composite has been hitting new highs lately.
Investors’ renewed interest in tech stocks is evidenced by the Technology Select Sector SPDR ETF’s (XLK) 6.6% returns over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 3% gains. Furthermore, an ongoing digital transformation, and increasing use of cloud computing, artificial intelligence (AI), and other advanced technologies, should keep driving the technology industry’s growth. According to GoRemotely, the tech industry is expected to hit a $5 trillion market value by year’s end.
Given the industry’s solid growth potential, analysts are optimistic about the performance of Uber Technologies, Inc. (UBER), Verint Systems Inc. (VRNT), and Zix Corporation (ZIXI). We think these stocks are well positioned to withstand any short-term market volatility and deliver solid returns.