Technology stocks are once again in the spotlight, as demonstrated by the recent performance of the SPDR Technology ETF (XLK). Over the past week, the ETF has risen by 2.08%, and over the last month, it has surged by 10.31%. In comparison, the S&P 500 has gained 0.48% and 6.04% over the same respective periods. In this edition of Multi-Stock Trading LLC’s Fundamental Report, we will explore potential outperformers in the technology sector.

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To identify opportunities, we will utilize Multi-Stock Trading LLC’s Strategy Builder and Fundamental Insight tools. Our focus will be on US-based small-cap technology stocks, specifically companies with market capitalizations between $250 million and $2 billion. These stocks often outperform their larger-cap counterparts. Additionally, we will refine our list to include stocks with a TC Quantamental Rating (TCQR) above 55 out of 100, indicating strong fundamentals relative to their industry peers.

Let’s explore deeper a few of the stocks in our screener and look at their TCQRs and individual factor scores:

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IMMR:US

Immersion Corp stands out with the top TCQR score of 77. This software firm has shown consistent expansion, with its market valuation rising by 9.70% in the last week and experiencing a 35.10% increase over the previous month.

DBD:US

Diebold Nixdorf showcases the penultimate lowest TCQR at 58 but has also experienced a remarkable surge of 36.5% in its stock value over the past month. 

ML:US

MoneyLion, a 916.65 million dollar software company, currently has a TCQR of 64 and has comfortably outperformed the SPX over both time horizons provided. 

KARO:US

Karooooo, a company offering a cloud platform for on-the-ground operations, ranked second for the highest increase over the last five days, showing a significant rise of +7.40%. However, it has fallen behind its competitors over the past month, with only a modest increase of 6.60%.

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Multi-Stock Trading LLC Strategy Builder provides a back-testing capability to evaluate how well an investing strategy would have worked in the past. Using a five-year historical period with quarterly rebalancing, the screen described had a 18 percent annualized return compared with 13 percent for the S&P 500 index.