Technology has become the first of the 10 S&P 500 sectors to recover all its losses incurred after Lehman’s bankruptcy last year. Will the sector continue to see a rally? Scott Kessler, equity analyst at Standard & Poor’s, and Kevin Landis, portfolio manager at The Firsthand Funds, shared their outlooks.
“Tech has done well because of the relative fundamentals,” Kessler told CNBC. “This is not an area that was hit as much by the financial crisis or what happened in housing.”
Kessler also pointed out that tech companies generate cash and don’t have a lot of debt.
“Unemployment remains high, but it seems like people who are working are working harder and harder and technology enables that to occur,” he added.
Kessler said he likes Microchip Technology .
In the meantime, Landis said he prefers the emerging tech area.
“If you look at Oracle or Intel , those are mature stories…where as if you look at the alternative energy names, those are more emerging,” said Landis.
“I’m more of an emerging tech guy, so I’m excited about alternative energy right now and particularly getting into solar technologies.”
Landis said he likes SunPower.
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Landis owns shares of SPWRA via funds.
No immediate information was available for Kessler or his firm.