Don’t Overlook 4 Top Tech Stocks Near Buy Point
Sifting through stock lists for a trend is always a sound strategy. Otherwise, you could miss a stock or group of stocks that are making a move. If you look at the industry group rankings for some of the software makers, for instance, you might be quick to dismiss them. The financial software group ranked No. 108 in Thursday’s list, down from No. 45 six weeks ago. Design software came in at No. 133 vs. No. 111 six weeks back, with enterprise software just behind at No. 134 vs. No. 112. One group improved: specialty enterprise software, at No. 120, up from No. 143. But drilling down to look deeper at which stocks make this week’s Tech Leaders, you might uncover a few gems that are near buy points. Citrix Systems ( CTXS ) is back in buy range from an 80 handle buy point initially cleared in April. More importantly, shares are finding support at the 10-week moving average, providing a secondary buy area. The stock spiked as much as 12% on April 22 before settling for a 4% gain, after the business software maker reported Q1 earnings that beat views and raised its full-year outlook. Florida-based Citrix belongs to the specialty enterprise software group. Paycom Software ( PAYC ) provides a cloud-based employment management platform with a software-as-a-service business model. Shares, near the top of a buy zone from a 38.28 cup-with-handle entry, have been rising past resistance around the 40 level, a positive sign. The base was a much steeper than normal 51%, which increases risk. But the stock’s relative strength line is near highs. Paycom hails from the enterprise software group, as does Ultimate Software ( ULTI ). Ultimate, which designs payroll and workforce management software, has posted quarterly double-digit profit and sales gains for at least the past four years. Analysts expect that streak to continue the next two quarters. The stock is shaping a handle with a 209.81 entry. Cadence Design Software ( CDNS ) is holding just above a 23.40 buy point first cleared in late March. It’s finding support at its 50-day line. The stock has the top Composite Rating, 95, in the design software group.