Tech stocks are undoubtedly one of the best paths to wealth in the stock market. With the emergence of artificial intelligence (AI), investors are on the hunt for companies that can deliver outsized returns. However, taking advantage of these wealth generators requires both a level-headed and forward-thinking approach.
More often than not, investors find themselves caught up in the hype of new investing trends. That is why it’s important to invest in the industry leaders while taking small risks when you can afford to do so. As the digital era continues to redefine industries, these three selected stocks emerge as promising contenders.
Now, let’s unpack the three best tech stocks on the path to 100% returns!
Oracle (ORCL)
Oracle (NYSE:ORCL) is an American multinational technology company headquartered in Austin, Texas. It is a leading enterprise cloud company and one of the largest software companies in the world by revenue.
Oracle is truly one of those diamonds in the rough companies at the forefront of the technology boom. ORCL is not only highly profitable but has more than 400,000 active customers worldwide. However, what investors should get excited about is the company’s generative AI push to accelerate revenue, EPS and FCF over the next decade.
Wall Street wasn’t too pleased with the company after it missed revenue estimates in its latest Q2 FY24 financial results. However, the report did showcase some important information, indicating the company’s underlying fundamentals reflect sustained growth. Oracle’s cloud revenue was up 25% year-over-year (YOY) to $4.8 billion, with net income up 44%. Additionally, CEO Safra Catz is bullish on the demand for its cloud infrastructure and generative AI services. With cloud infrastructure being an important component of the AI renaissance, Oracle is one of the best no-brainer tech stocks to buy in 2024.
Fortinet (FTNT)
Fortinet (NASDAQ:FTNT) is a leading cloud security platform with enormous potential in 2024. While the cybersecurity sector saw a huge boom in 2023, Fortinet largely lagged behind. However, the company continues to see improvements in top and bottom-line growth, which could accelerate in FY24.
Fortinet is truly a transformative business with the potential to be a huge wealth generator for investors seeking financial independence. It is one of the leading fabric and network cloud security platforms for small and medium enterprise businesses. Over the last decade, the company saw considerable growth in revenue, FCF and EPS. Even amidst the slowdown in the secure networking market in FY23, FTNT still projects strong double-digit growth.
In its latest quarterly results, Fortinet’s revenue increased 16% YOY to $1.33 billion. Net income increased 39% YOY to $322.9 million, or $0.41 per share. Despite experiencing slowdowns in secure networking, the company’s strategy to consolidate product endpoints is working. With non-GAAP EPS projected to rise 45% in FY23, Fortinet could be on pace for another transformative year in 2024.
Qualys (QLYS)
Qualys (NASDAQ:QLYS) makes its case as an under-the-radar cybersecurity stock for 2024. The stock is up more than 1,200% since its IPO back in September 2012, thanks to its acceleration in revenue growth and profitability.
Qualys is a cloud-based cybersecurity company that consolidates IT, security and compliance in one platform. It serves more than 10,000 customers, and its TruRisk platform is one of the most comprehensive in the industry. Furthermore, Qualys has positioned itself in the AI-powered cybersecurity race with the acquisition of Blue Hexagon’s AI and machine learning platform in late 2022. The acquisition will enable Qualys to leverage its cloud platform with more than 10 trillion data points to uncover behavior patterns and vulnerable activities.
Moreover, Qualys’ profitability is what really sets it apart as one of the smaller players in cybersecurity. The company saw a significant acceleration in revenue and net income over the last decade, with FCF growth reflecting management’s strong execution. With the cybersecurity race in full effect, this is one of the best tech stocks on pace to double in the next few years.
On the date of publication, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.