9 Best Mid-Cap Tech Stocks to Buy Right Now

NEW YORK (TheStreet) -- With the tech-sector booming and the rest of the markets moving sideways, it could be a good time to invest in what has traditionally been one of the strongest growth sectors. Looking through TheStreet Quant RatingsTheStreet's proprietary quant-based stock-rating tool, we picked the nine best tech companies, which are all A rated.

The Street Quant Ratings rates every one of these stocks an A. These stocks were chosen from 4,300 different types of equities we rate.

TheStreet Ratings projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 32 major data points, TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a buy yielded a 16.56% return in 2014, beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a buy yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

Check out which stocks made the list. And when you're done, be sure to read about which safe, A+ rated stocks you should buy now. Year-to-date returns are based on October 12, 2015 closing prices.

ITRN Chart ITRN data by YCharts
9. Ituran Location and Control Ltd. (ITRN)

Rating: Buy, A
Market Cap: $458.4 million
Year-to-date return: -0.82%

Ituran Location and Control Ltd., together with its subsidiaries, provides location-based services and wireless communication products in Israel, Brazil, Argentina, and the United States.

TheStreet Ratings team rates ITURAN LOCATION & CONTROL as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate ITURAN LOCATION & CONTROL (ITRN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • ITRN's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.34, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, ITURAN LOCATION & CONTROL's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $10.68 million or 33.60% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -12.41%.
  • After a year of stock price fluctuations, the net result is that ITRN's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The gross profit margin for ITURAN LOCATION & CONTROL is rather high; currently it is at 56.94%. Regardless of ITRN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 13.27% trails the industry average.
  • You can view the full analysis from the report here: ITRN

SPNS Chart SPNS data by YCharts
8. Sapiens International Corporation N.V. (SPNS)

Rating: Buy, A
Market Cap: $575.3 million
Year-to-date return: 60.24%

Sapiens International Corporation N.V. and its subsidiaries provide software solutions for the insurance industry primarily in North America, the United Kingdom and rest of Europe, Israel, and the Asia Pacific.

TheStreet Ratings team rates SAPIENS INTERNATIONAL CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate SAPIENS INTERNATIONAL CORP (SPNS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 12.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SPNS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, SPNS has a quick ratio of 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 56.33% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SPNS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SAPIENS INTERNATIONAL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SAPIENS INTERNATIONAL CORP increased its bottom line by earning $0.29 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($0.44 versus $0.29).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 51.6% when compared to the same quarter one year prior, rising from $3.11 million to $4.71 million.
  • You can view the full analysis from the report here: SPNS

SYKE Chart SYKE data by YCharts
7. Sykes Enterprises, Incorporated (SYKE)

Rating: Buy, A
Market Cap: $1.2 billion
Year-to-date return: 16.06%

Sykes Enterprises, Incorporated, together with its subsidiaries, provides outsourced customer contact management solutions and services in the business process outsourcing (BPO) arena.

TheStreet Ratings team rates SYKES ENTERPRISES INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate SYKES ENTERPRISES INC (SYKE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Powered by its strong earnings growth of 63.15% and other important driving factors, this stock has surged by 28.19% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • SYKES ENTERPRISES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SYKES ENTERPRISES INC increased its bottom line by earning $1.35 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($1.62 versus $1.35).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 54.9% when compared to the same quarter one year prior, rising from $8.34 million to $12.91 million.
  • SYKE's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.19, which clearly demonstrates the ability to cover short-term cash needs.
  • You can view the full analysis from the report here: SYKE

EXLS Chart EXLS data by YCharts
6. ExlService Holdings, Inc. (EXLS)

Rating: Buy, A
Market Cap: $1.4 billion
Year-to-date return: 41.34%

ExlService Holdings, Inc. provides business process solutions, utilizing operations management, analytics, and technology primarily in the United States and the United Kingdom. It operates in two segments, Operations Management, and Analytics and Business Transformation.

TheStreet Ratings team rates EXLSERVICE HOLDINGS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate EXLSERVICE HOLDINGS INC (EXLS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 21.5%. Since the same quarter one year prior, revenues rose by 24.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • EXLS's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.84, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 55.5% when compared to the same quarter one year prior, rising from $7.76 million to $12.07 million.
  • Net operating cash flow has increased to $27.03 million or 18.61% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.37%.
  • 35.43% is the gross profit margin for EXLSERVICE HOLDINGS INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, EXLS's net profit margin of 7.75% significantly trails the industry average.
  • You can view the full analysis from the report here: EXLS

WNS Chart WNS data by YCharts
5. WNS (Holdings) Limited (WNS)

Rating: Buy, A
Market Cap: $1.6 billion
Year-to-date return: 48.11%

WNS (Holdings) Limited provides business process management services comprising data, voice, analytical, and business transformation services worldwide.

TheStreet Ratings team rates WNS (HOLDINGS) LTD -ADR as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate WNS (HOLDINGS) LTD -ADR (WNS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 21.5%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WNS's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, WNS has a quick ratio of 2.20, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.45% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 5.7% when compared to the same quarter one year prior, going from $12.07 million to $12.76 million.
  • Net operating cash flow has increased to $16.99 million or 28.69% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.37%.
  • You can view the full analysis from the report here: WNS

VRTU Chart VRTU data by YCharts
4. Virtusa Corporation (VRTU)

Rating: Buy, A
Market Cap: $1.6 billion
Year-to-date return: 30.17%

Virtusa Corporation operates as an information technology (IT) services company.

TheStreet Ratings team rates VIRTUSA CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate VIRTUSA CORP (VRTU) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 21.5%. Since the same quarter one year prior, revenues rose by 20.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • VIRTUSA CORP has improved earnings per share by 9.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VIRTUSA CORP increased its bottom line by earning $1.44 versus $1.27 in the prior year. This year, the market expects an improvement in earnings ($1.57 versus $1.44).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 12.3% when compared to the same quarter one year prior, going from $9.00 million to $10.11 million.
  • Net operating cash flow has significantly increased by 157.80% to $1.45 million when compared to the same quarter last year. In addition, VIRTUSA CORP has also vastly surpassed the industry average cash flow growth rate of -2.37%.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 50.70% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • You can view the full analysis from the report here: VRTU

TECD Chart TECD data by YCharts
3. Tech Data Corporation (TECD)

Rating: Buy, A
Market Cap: $2.6 billion
Year-to-date return: 15.4%

Tech Data Corporation engages in the wholesale distribution of technology products.

TheStreet Ratings team rates TECH DATA CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate TECH DATA CORP (TECD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Powered by its strong earnings growth of 102.91% and other important driving factors, this stock has surged by 33.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TECD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 94.3% when compared to the same quarter one year prior, rising from $39.33 million to $76.41 million.
  • Net operating cash flow has significantly increased by 541.45% to $200.32 million when compared to the same quarter last year. In addition, TECH DATA CORP has also vastly surpassed the industry average cash flow growth rate of 32.00%.
  • TECD's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.91 is somewhat weak and could be cause for future problems.
  • You can view the full analysis from the report here: TECD

MENT Chart MENT data by YCharts
2. Mentor Graphics Corporation (MENT)

Rating: Buy, A
Market Cap: $3 billion
Year-to-date return: 17.79%

Mentor Graphics Corporation provides electronic design automation software and hardware solutions to automate the design, analysis, and testing of electro-mechanical systems, electronic hardware, and embedded systems software.

TheStreet Ratings team rates MENTOR GRAPHICS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate MENTOR GRAPHICS CORP (MENT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MENT's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 27.68% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MENT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for MENTOR GRAPHICS CORP is currently very high, coming in at 87.34%. It has increased from the same quarter the previous year.
  • You can view the full analysis from the report here: MENT

SNX Chart SNX data by YCharts
1. SYNNEX Corporation (SNX)

Rating: Buy, A
Market Cap: $3.7 billion
Year-to-date return: 19.2%

SYNNEX Corporation provides business process services to resellers, retailers, and original equipment manufacturers in the United States, Japan, and internationally. It operates in two segments, Technology Solutions and Concentrix.

TheStreet Ratings team rates SYNNEX CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate SYNNEX CORP (SNX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 42.01% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SNX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SYNNEX CORP has improved earnings per share by 6.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SYNNEX CORP increased its bottom line by earning $4.58 versus $2.98 in the prior year. This year, the market expects an improvement in earnings ($6.25 versus $4.58).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Electronic Equipment, Instruments & Components industry average. The net income increased by 7.1% when compared to the same quarter one year prior, going from $44.99 million to $48.17 million.
  • The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.13, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 573.35% to $221.85 million when compared to the same quarter last year. In addition, SYNNEX CORP has also vastly surpassed the industry average cash flow growth rate of 32.00%.
  • You can view the full analysis from the report here: SNX

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