NEW YORK ( TheStreet) -- The holiday shopping season is now in full swing, and technology of all types is on just about everyone's list. That got me wondering if there are any tech companies that Santa might want to invest in, if he had some extra cash.
Of course, you do not need Rudolph to lead you to the A-list, uber-technology behemoth, Apple (AAPL) . With a stock price in near-record territory, you might think Apple is too pricey, even though the iPhone is the greatest communication tool we've seen since you tied two cans together as a kid. But think again. I use a strategy that thinks Apple's stock is, if not cheap, certainly a good buy.
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This strategy, which is based on Peter Lynch's writings, judges the desirability of a stock's price by calculating how much the investor is paying for that all-important variable: growth. A price-to-earnings ratio relative to growth (P/E/G) of up to one is perfectly acceptable -- and so it is telling that Apple's stock is well below this upper threshold, with a P/E/G of 0.62. That is due to the stock's reasonable P/E ratio of about 18, and a robust growth rate of 29%, based on the average of the three-, four- and five-year historical earnings-per-share growth rates.
Take-Two Interactive Software (TTWO) is another tech company whose products are likely to be found under plenty of Christmas trees. The maker of computer games has a stable of popular products, including Grand Theft Auto, Midnight Club, Sid Meier's Civilization and NBA 2K.