This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tech Stocks Become Wall Street Darlings Again

BOSTON ( TheStreet) -- Are technology stocks the darlings of Wall Street again a decade after the dot-com bubble burst? If analysts' recommendations are a guide, the answer is "yes."

Apple (AAPL - Get Report), Google (GOOG - Get Report) and other tech stocks are the most adored by Wall Street analysts. Based on recommendations from researchers, they take the top five ranks with no fewer than 35 "buy" ratings each. While many have a larger number of analysts following them, tech still ranks higher than energy names such as Halliburton (HAL) and Schlumberger (SLB).

Many of the top-ranked stocks earned their "buy" ratings after showing sustained growth in revenue and earnings over the past few quarters. But tech stocks have also become favored recently as mergers and initial public offerings are announced at a breakneck pace. According to Renaissance Capital's IPO Home, there have been 19 technology IPOs this year, the most of any sector.

And on the M&A front, more than $94 billion in tech deals have been announced this year, already the highest total since 2000, according to Dealogic. Most recently, Microsoft (MSFT) revealed the $8.5 billion acquisition of video-software company Skype.

Still, some investors have been tentative about technology stocks. According to data provided by Morningstar (MORN), inflows to tech-centric mutual funds were $416 million in January and $225 million in February. That was followed by two months of outflows of $606 million and $259 million in March and April, respectively.

Analysts, bullish on companies' order books and wide profit margins, put tech stocks at the top of their list. Several other technology companies round out the list of the most highly recommended stocks. EMC (EMC), Hewlett-Packard (HPQ), (CRM), Broadcom (BRCM), Juniper Networks (JNPR) and Microsoft all rank in top 20.

Five tech heavyweights, in particular, are favored by Wall Street. The five that rank highest are arranged below in order of total "buy" ratings.
1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
GOOG $683.57 0.00%
INTC $29.04 0.00%
ORCL $35.70 0.00%
QCOM $44.02 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs