- Tech stocks offer high growth prospects and choosing the right tech stocks can provide significant gains to investors.
- Investors looking for stocks with healthy growth prospects can explore these stocks.
Due to high growth prospects, technology stocks garner a lot of interest from investors. With inflation levels hitting double digits in July and estimates that they'll reach as much as 20% by early next year, investors are looking for stocks with good growth prospects.
When inflation is high, central banks raise interest rates to control it. As borrowing becomes more expensive, the cash flows of technology firms are discounted, leading to a dip in their value. It should also be kept in mind that several technology firms are in the growth phase, focusing on spending money on growth instead of dividends.
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Let us explore some of the FTSE-listed technology stocks.
Sage Group Plc (LON: SGE)
Sage Group is another FTSE 100 constituent and a British enterprise software firm. The company last month signed a deal to acquire IT service company Lockstep. Sage Group's current market cap stands at £7,317.84 million, and its EPS is 0.28. Over the past 12 months, the stock value has declined by 1.89%, while the year-to-date return has fallen by over 15%.
Computacenter Plc (LON: CCC)
Computacenter is listed on the mid-cap-focused FTSE 250 index. The company posted a 16.6% rise in gross invoiced income for the first six months of 2022 over the same period last year. However, the pre-tax profits slumped 6.4% to £107.8 million from £115.2 million in H12021. The share price has dipped by nearly 26% in the past year. The company holds a market cap of £2,600.98 million, and the EPS is 1.64.
Kin and Carta Plc (LON: KCT)
The global digital transformation consultancy is listed on the FTSE All-Share index. It holds a market cap of £347.94 million, and its share value has depreciated by a third in the last 12 months. The EPS stands at 0.02.
Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.