Tech Stocks Still Have a Bright Future

Article Excerpt

Many technology stocks have plunged 50% or so in the past three months. That’s due to fears that the slowing economy will prompt businesses and consumers to buy fewer computers and cellphones. We feel proven tech leaders, such as these six, have a lot of appeal. They all have plenty of cash for research, and little debt. New products from this research will give them a competitive advantage, and spur their sales as the economy rebounds. As well, all six now trade for about 10 times earnings, down from 30 to 40 times a few years ago. Their p/e’s should eventually creep up, as their research spending pays off. That could lead to big gains for patient investors. But only some are buys right now. AGILENT TECHNOLOGIES INC. $19 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 350.0 million; Market cap: $6.7 billion; WSSF Rating: Average) makes testing systems that help manufacturers improve the quality of electronic products…