There are a large number of analysts who believe technology stocks are undervalued -- if you associate with that belief you may be interested in JPMorgan's top tech stock picks for 2012.
J.P Morgan's Noelle V. Grainger published a report on December 9th that took a look at top stocks in several technology sectors, such as software, computer services & IT consulting, semiconductor capital equipment, and alternative energy.
Each sector faces its own set of challenges in today's market.
An example of the sectors JP Morgan thinks are on the fence is software technology. The sector did very well in 2010 but was relatively flat in 2011. Performance in 2012 will depend largely upon investor confidence in earnings growth estimates and macroeconomic uncertainties, according to Insider Monkey.
Some of the sectors expected to excel are Communications Equipment & Data Networking and SMid Semiconductors, which are linked to high growth in communication infrastructure.
One sector JP Morgan feels has more downside than upside is solar. Subsidies for solar energy are expected to be reduced in 2012, and most companies are already struggling to keep their prices affordable.
J.P. Morgan has buy recommendations for the following -- do you agree that these names have the potential to grow in 2012?
List sorted by market cap. (Click here to access free, interactive tools to analyze these ideas.)
1. Oracle Corp.
2. MasterCard Inc.
3. Texas Instruments Inc.
4. Broadcom Corp.
5. Equinix Inc.
6. Lam Research Corp.
7. Jabil Circuit Inc.
8. Robert Half International Inc.
9. Riverbed Technology, Inc.
10. Cree, Inc.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
List compiled by Eben Esterhuizen, CFA. Kapitall's Rebecca Lipman does not own any of the shares mentioned above. Data sourced from Finviz.
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