Under-the-Radar Tech Stocks for Today

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As the recession has dragged on for a year and a half, companies are finally spending more on technology. Fear that competitors are bolstering their tech capabilities is an added catalyst.

The Nasdaq Composite Index, a vehicle for technology stocks, has risen 9.9% this year, more than the broader S&P 500 Index, which is little changed. The Nasdaq rose to a six-month high two weeks ago.

The following are two potential beneficiaries of a tech-spending rebound. Only 76 of 1,001 information-technology stocks covered by TheStreet.com Ratings earn "buy" recommendations.

Quality Systems(QSII Quote) has been rated "buy" by TheStreet.com Ratings for two years, operating virtually unscathed during the worst economic rout in 80 years. The small-cap software company has posted annual growth in earnings per share for 11 consecutive quarters. Revenue in the most recent quarter jumped 31%. The Irvine, California-based company, which develops and markets health-care information systems and sophisticated programs for niche areas of the medical field, has no debt and ample liquidity, enabling it to survive the credit crisis. There's growth ahead: Quality Systems is set to benefit from federal stimulus projects and infrastructure changes to the health care system.

Shares of Quality Systems have risen 35% this year. Unlike many tech stocks, Quality Systems pays a consistent dividend, which at its current price is equivalent to a 2.17% yield, twice that of the average Nasdaq stock. To be sure, the shares are trading at a premium based on sales, earnings, book value and cash flow, but such is life for a healthy tech company.