The adoption of cloud-based communication services, technological advancements, remote work/virtual collaboration trends, and communication security requirements is boosting the growth of the technology communications sector. Therefore, investors could look to buy fundamentally strong tech stocks Extreme Networks, Inc. (EXTR – Get Rating), Gilat Satellite Networks Ltd. (GILT – Get Rating), and PowerFleet, Inc. (PWFL – Get Rating).
With the rise of 5G networks and cloud computing technologies, coverage, speed, flexibility, and cost efficiency are increasing rapidly in all markets. The advent of cutting-edge technologies such as artificial intelligence (AI) and the Internet of Things (IoT) presents the tech sector with immense opportunities.
As digital communication channels are becoming widespread, there is an increasing need for security measures to safeguard sensitive information against cyber threats. Consequently, companies are capitalizing on technological advancements to provide secure communication systems to consumers.
Furthermore, governments are increasing tech investments. According to the latest forecast by Gartner, worldwide government IT spending is projected to total $589.80 billion in 2023, an increase of 7.6% from the past year.
According to Statista, revenue in the communication services market is expected to show a CAGR of 1.4%, resulting in a market volume of $356.70 billion by 2028.
Additionally, investors’ interest in tech stocks is evident from the Technology Select Sector SPDR ETF’s (XLK – Get Rating) 37.6% returns over the past six months.
Given these factors, investors could benefit from the featured tech stocks. Let’s take a closer look at their fundamentals…
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