Expected Tech Sector Impactors
Based on the average (or consensus) twelve month price targets for S&P 500 stocks, the technology sector is expected to gain 26.5% over the next year. On a "bottoms up" basis this gain will account for 22% of the S&P 500's gain over the next year, and the computers and software groups will lead the sector.
Microsoft is expected to lead the sector, accounting for 16.25% of its gain, and 3.57% of gains for the index. It is also notable that the top ten tech stocks are expected to account for 70% of the sector's gain, and only one of the seventy-one stocks is expected to decline (YHOO).
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Microsoft definitely has some pent up upside in it but I'm a little HP and Oracle moving up 30% this year. Granted we're still going through the Vista upgrade cycle but I'm not sure if HP will continue to reap the same benefits it did in 2007. And Oracle, I've been waiting for its acquisition binge to catch up with it.
Posted by: Wayne Mulligan | February 20, 2008 at 10:14 AM