The technology sector enjoys several tailwinds, as cash-rich corporations make the IT capital improvements they've deferred for years.
The benchmark Technology Select Sector SPDR ETF (XLK) has generated a year-to-date total return of 8.2%. However, not all tech stocks are created equal. Some are one-product wonders, capitalizing on new and fickle consumer fads. Others are falling behind as rivals come up with better mousetraps.
High-flying tech stocks have a nasty habit of crashing and burning when their products encounter serious competition from disruptive improvements.
However, you can profit from technology's growth, as well as the small-cap resurgence expected in 2017, with shares in sure-footed Progress Software (PRGS) . This stock rarely gets covered by the financial press, but PRGS is a chance for you to reap small-cap outperformance without the undue risk of thinly capitalized tech newcomers.
Based within Boston's Route 128 technology corridor, Progress provides cloud-based and software-as-a-service data solutions for companies in a broad variety of industries.
Progress is a global supplier of application development, deployment and management technology, Internet and intranet enabling technologies. The company's products are used at over 60,000 organizations in 140 countries including 90% of the Fortune 500.
With a market cap of $1.4 billion, Progress is small enough to offer the potential for market-beating growth that's tough to achieve for megacap rivals such as Microsoft (MSFT) , IBM (IBM) , Oracle (ORCL) and Cisco Systems (CSCO) . PGRS shares have soared 20.6% over the past 12 months.