The technology sector has soared since the March lows, so does it have more room to run? Jeff Donlon, senior analyst with the 5-star Manning & Napier Pro Blend Max Fund said there are some names that may be poised to continue rising despite the industry’s already impressive climb.
“There are a lot of reasons to like the technology sector,” Donlon told CNBC. “[They have] very strong balance sheets, great job at cost cutting, very attractive on a free cash flow yield basis, beneficiary of the weak dollar, and inventory levels are still very lean.” (Read below for his full stock picks.)
CNBC Data Pages:
- Track the DJ Technology Index Here
- Dow 30 Stocks—In Real Time
- Where's the US Dollar Today?
Going forward, Donlon said tech investors will have to be more discretionary in terms of stocks they’re involved in.
“We look for companies with long-term secular growth drivers that are gaining market shares in their industries, are building sustainable competitive advantages and barriers to entries within their businesses, as well as well-positioned to take advantage of stronger relative growth overseas in terms of emerging markets.”
More Market Intelligence:
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Donlon Likes:
EMC
Autodesk
Crown Castle
American Tower
SBA Comm. ______________________________CNBC Slideshows:Biggest Tech Blunders in the Last 25 Years
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Disclosure:
Donlon’s firm owns shares of EMC, ADSK, CCI, AMT and SBAC.
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