2 Top Tech Stocks to Buy Right Now

The stock market has been on a good run lately. The S&P 500 is up 14% year to date, and the Nasdaq Composite has risen by 17%. A lot of this performance has been driven by the large, well-known tech companies in the news almost daily. However, some wonderful tech businesses don’t get as much media coverage but are worth considering as investments.

Here are two great tech stocks to buy right now. Each company has been reporting solid results and has a large market opportunity to pursue. Let’s dig in and see why.

Fortinet

Fortinet (NASDAQ: FTNT) may not be the first cybersecurity company that comes to mind for most investors, but it has been posting strong results for many years. In fact, since its 2009 initial public offering (IPO), shares are up more than 3,400%, easily outpacing the S&P 500. The story has been different over the past year when Fortinet has seen its stock fall 19%, driven by three sharp declines following earnings reports.

The stock’s recent struggles resulted from a slowdown in some key metrics. Year-over-year revenue growth has slowed in each of the last five quarters, and billings (which are a measure of future revenue) have followed a similar trajectory. These two results combined indicate to investors that things will be bumpy in the short term.

Despite this top-line deceleration, Fortinet was still able to keep its bottom line stable and generate strong free cash flow. Additionally, the company expects to see stronger results throughout the second half of 2024. Revenue for the full year is expected to grow between 8% and 10%. By comparison, revenue growth for the first quarter was only 7%. Billings are expected to be up between 0% and 3% for the full year after falling 6% in Q1.

Today’s stock price would indicate the market isn’t ready to give credit for these future results yet, but there’s a case to be made that the company’s current struggles will be short lived, presenting a compelling buying opportunity.