The Best Tech Stocks to Buy

Technology stocks offer investors the promise of growth in ways few other sectors can. After all, tech is synonymous with innovation, spawning new products, services, and features.

“Clearly, a rising AI tide is lifting all boats,” says Morningstar Indexes strategist Dan Lefkovitz. “From a sector perspective, technology and tech-adjacent sectors like communication services have benefited most.”

In the year to date, the Morningstar US Technology Index rose 18.02%, while the Morningstar US Market Index gained 9.40%.

The 12 Best Tech Stocks to Buy Now

These were the most undervalued tech stocks that Morningstar’s analysts cover as of June 12, 2026.

1. SAP SAP
2. Guidewire Software GWRE
3. Broadridge BR
4. Broadcom AVGO
5. Tyler Technologies TYL
6. Sony Group SONY
7. Microsoft MSFT
8. Jack Henry & Associates JKHY
9. PTC PTC
10. Bentley Systems BSY
11. Nvidia NVDA
12. Fair Isaac FICO

To come up with our list of the best tech stocks to buy now, we screened for:

• Technology stocks that are undervalued, as measured by our price/fair value metric.
• Stocks that earn a wide
  Morningstar Economic Moat Rating
  . We think companies with wide economic moat ratings can fight off competitors for at least 20 years.
• Stocks that earn a Low, Medium, High, or Very High
  Morningstar Uncertainty Rating
  , which captures the range of potential outcomes for a company’s fair value.

Here’s a little more about each of the best tech stocks to buy, including commentary from the Morningstar analysts who cover each company. All data is as of June 12, 2026.

SAP

• Morningstar Price/Fair Value: 0.52
• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Wide
• Industry: Software—Application

SAP is the most affordable stock on our list of the best tech stocks to buy. Founded in Germany in 1972 by former IBM employees, SAP is the world’s largest provider of enterprise application software. The stock is trading 48% below our fair value estimate of $317 per share.

SAP is the world’s largest provider of enterprise application software and global-market leader in enterprise resource planning software. The company earns revenue by selling subscriptions for its various cloud-based software-as-a-service products as well as licenses and maintenance fees for on-premises software, which are now being largely phased out. Besides its core ERP products such as S/4HANA, SAP offers well-known back-office software products such as Concur for travel and expense management and Ariba for procurement.

The company was late to the cloud for ERP software but now offers two compelling products: RISE with SAP, which is the private-cloud edition designed for SAP’s large enterprise customers that are transitioning from their SAP on-premises ERP (ECC) to SAP S/4HANA; and GROW with SAP, which is the public cloud edition that is designed for midmarket companies with less complex requirements. We think GROW with SAP fills an important void in SAP’s product offering as previously SAP’s ERP software was often unattractive to smaller customers given the implementation costs were just too high. With the launch of these new products, cloud revenue is growing swiftly and SAP is capturing many new midmarket customers.

SAP is following a land and expand strategy, which is common in the enterprise software market. RISE with SAP and GROW with SAP are the land products after which the company then upsells and cross-sells more SAP products to these customers, which is much easier in a cloud-based model. The company has yet to release its latest long-term ambitions, but expects revenue growth to accelerate at least through 2027 along with rising margins as the cloud-business reaches efficient scale.

Read more about SAP here.

Guidewire Software

• Morningstar Price/Fair Value: 0.56
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Wide
• Industry: Software—Application

Guidewire Software provides cloud-based software solutions for property and casualty insurers. The firm earns a wide economic moat rating, and shares of its stock look 44% undervalued relative to our $220 fair value estimate.

Guidewire spent years developing leading software for property and casualty insurers and endeavoring to win mandates to upgrade aging core legacy systems to Guidewire’s solutions. While the modernization journey continues, Guidewire is now leading insurers to move to the cloud, once again disrupting a sleepy industry that has been underserved by legacy software vendors. We see a long runway for growth in the form of new client wins, expansions to additional lines within existing customers, and cross-selling additional solutions.

Guidewire is executing a classic land-and-expand strategy. The firm started with the most critical piece, ClaimCenter, which is customer-facing and handles claims processing, and then organically layered in BillingCenter and PolicyCenter within the next several years. Today, Guidewire has a broad software suite that it has combined onto a powerful platform that covers all areas of an insurer’s needs and offers a wide variety of add-on solutions, with analytics representing an important growth driver.

By any objective measure, Guidewire has become the leading provider of core software to the P&C insurance industry. The company already covers more than 25% of direct written premiums, and it wins more deals per year than its largest competitors combined. Just as the company nudged the industry to modernize, we believe it will be at the forefront as it now leads a wide array of the largest insurers into the SaaS age with InsuranceSuite Cloud and other cloud-based solutions.

We expect Guidewire to continue to win more than its share of new clients, especially at the larger end of the market. From there, we expect the company to upsell additional lines of insurance business and add on features. We believe momentum is on the company’s side after capturing many critical Tier 1 insurer mandates and that the industry can no longer wait or afford to maintain legacy systems built in the 1950s in some instances.

Read more about Guidewire Software here.

Broadridge

• Morningstar Price/Fair Value: 0.57
• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Wide
• Industry: Information Technology Services

Next on our list of the best tech stocks to buy is Broadridge. Broadridge Financial Solutions, which was spun off from Automatic Data Processing in 2007, is a leading provider of investor communication and technology-driven solutions to banks, broker/dealers, traditional and alternative-asset managers, wealth managers, and corporate issuers. The stock is trading at a 43% discount to our fair value estimate of $255 per share.

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates over 30% of its fee revenue and earnings before interest, taxes, depreciation, and amortization from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Since its spinoff from Automatic Data Processing in 2007, Broadridge has streamlined its operations and expanded into adjacent markets. After years of losses in its clearing business, Broadridge sold it to Penson Worldwide in 2010. Expanding on its mailing, data security, and processing capabilities, Broadridge has completed over 30 acquisitions since 2010. Notable purchases include DST’s North American customer communications business for $410 million in 2016 and RPM Technologies for $300 million in 2019. The NACC business provides print and digital communication solutions, content management, postal optimization, and fulfillment to a variety of sectors, including financial services, utilities, and healthcare. RPM provides enterprise wealth-management software solutions and services. In 2021, Broadridge acquired Itiviti, a provider of order and execution management trading software and order routing, networking, and connectivity solutions, for $2.5 billion, which was pricey, in our view.

During its December 2023 investor day, Broadridge laid out three-year annual goals including recurring revenue growth of 7%-9% (organic 5%-8%), adjusted operating margin expansion of at least 50 basis points, and adjusted earnings per share growth of 8%-12%. These targets are similar to its prior three-year goals, which Broadridge largely achieved.

Read more about Broadridge here.

Broadcom

• Morningstar Price/Fair Value: 0.59
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Wide
• Industry: Semiconductors

Broadcom is one of the world’s largest semiconductor companies and has also expanded into infrastructure software. The firm earns a wide economic moat rating, and the shares of its stock look 41% undervalued relative to our $650 fair value estimate.

Broadcom is an amalgamation of high-value, differentiated and moaty chip and software businesses. Put simply, Broadcom is a prolific generator of cash flow. It is a terrific aggregator of firms, big and small. Its ability to acquire and streamline generates strong profits and cash flow and fuels robust shareholder returns. We laud the company for its execution and operating efficiency, which build upon its large organic investment and help it to outperform its end markets organically.

In our view, Broadcom’s networking and custom chip businesses are its strongest and the primary drivers of the company’s wide economic moat and results. We expect it to retain a dominant position in merchant silicon for switching and routing applications, where we see it as best-of-breed for high speeds. We also expect it to hold a formidable position in custom artificial intelligence accelerators as it benefits from hyperscale cloud vendors building chips to reduce their reliance on Nvidia. We see Broadcom as the key secondary AI compute vendor to Nvidia as hyperscalers further pursue custom silicon to gain performance, save money, and avoid vendor lock-in.

Outside of chips, Broadcom’s software businesses sell virtualization software, mainframe software, and cybersecurity software, and we see its offerings as highly competitive. Broadcom’s focus on strategic large software customers like financial institutions, governments, and large enterprises—where it is deeply embedded—elicits steep switching costs. We also see upselling opportunities with VMware under the firm’s belt.

We expect Broadcom to grow rapidly as a result of its skyrocketing AI chip business. We believe AI is already the primary driver of Broadcom’s results. To us, an investment in Broadcom today is an investment in its AI chip and networking businesses. Outside of AI, we see more moderate growth led by VMware and non-AI networking. We expect acquisitions to still be on Broadcom’s radar, but perhaps with larger, less frequent deals. After the 2023 VMware purchase, we expect the company to focus on deleveraging for a couple of years before tapping the acquisition market again.

Read more about Broadcom here.

Tyler Technologies

• Morningstar Price/Fair Value: 0.60
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Wide
• Industry: Software—Application

Tyler Technologies provides a full suite of software solutions and services that address the needs of cities, counties, schools, courts, and other local government entities. Tyler Technologies is an affordable tech stock, trading at a 40% discount to our fair value estimate of $500 per share. The software application firm earns a wide economic moat rating.

We view Tyler Technologies as the clear leader in a sleepy and underserved public service software niche market. We believe there is a decadelong runway for normalized top-line growth near 10% at Tyler, especially as demand for SaaS accelerates and the need to modernize local governments’ legacy enterprise resource planning systems intensifies.

The company’s three core products are Munis, the core ERP system, Odyssey, the court management system, and a web-enabled transactional platform. These systems enable normal operations of governmental units, including financial management, human resources, revenue management, tax billing, and asset management. Tyler addresses the needs of cities, counties, schools, courts, and other local government entities. Many existing core systems at customer sites are at least 20 years old and running on ancient software code, where there is no next wave of incoming, fluent programmers to keep these systems running. We think extending the life of these legacy systems is no longer tenable.

Tyler has also moved more meaningfully toward more transactional recurring revenue through several avenues. E-Filing for court documents and local village hall web portals for basic services like paying a water bill online have been the primary sources for these revenues over the last five years. Further, the April 2021 acquisition of NIC Inc., a leader in government solutions and payments, punctuated this move to more transactionally recurring revenue in our view.

Lastly, we see Tyler’s expanding portfolio as driving larger deals that encompass more solutions. While the company used to fight for every $100,000 deal, it has now established enough of a reputation in the government market that it is called upon in most relevant government system searches. The potential client base has certainly grown, as evidenced by a variety of statewide e-filing, transactional, and court system deals worth tens of millions of dollars annually. Further, Tyler benefits from a fragmented market with no companies of comparable size or scale focused on the local public institution market.

Read more about Tyler Technologies here.

Sony Group

• Morningstar Price/Fair Value: 0.63
• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Wide
• Industry: Consumer Electronics

Sony Group is a conglomerate with consumer electronics roots, which not only designs, develops, produces, and sells electronic equipment and devices, but also engages in content businesses, such as console and mobile games, music, and movies. Trading 37% below our fair value estimate, Sony Group has a wide economic moat rating. We think shares of this stock are worth $32.50 per share.

As technologies and consumer preferences change rapidly, it is generally difficult for consumer electronics companies to build an economic moat. The replacement cycle for digital appliances is usually four to six years, but as most products are commoditized, it is difficult for manufacturers to build an ecosystem that prevents customers from switching to other brands. As a result, Sony’s profitability on electronics had been unstable in the past, while its music, movies, and financial services businesses have generated solid results.

Over the past decade, Sony has transformed its business model to enable more solid and stable growth by reducing the volatility of the consumer electronics business and by aggressively investing in acquiring content for its entertainment businesses such as music, movies, and games.

In the consumer electronics business, profits are generated from digital cameras and audio equipment, where Sony has strengths, while the TV business is thoroughly focused on avoiding losses by focusing on premium products and strictly managing inventories.

In the music and movie businesses, Sony has been able to seize growth opportunities such as the expansion of the streaming market, by expanding its content and exploring new artists.

The image sensor business has the largest global market share. The majority of sales come from the mobile market, which is benefiting from the strong demand for improved image quality in smartphone cameras. However, unlike the entertainment businesses, image sensors require high capital investment and research and development, and with such high fixed costs, we believe the profitability of the business is not high enough.

PlayStation is Sony’s largest revenue-generating business. While user migration from PS4 to PS5 is progressing well, rising game development costs and competition from other platforms such as Steam are becoming a concern for the business.

Read more about Sony Group here.

Microsoft

• Morningstar Price/Fair Value: 0.65
• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Wide
• Industry: Software—Infrastructure

Microsoft develops and licenses consumer and enterprise software. Trading 35% below our fair value estimate, Microsoft has an economic moat rating of wide. We think shares of this stock are worth $600 per share.

Microsoft is one of three public cloud providers that can deliver a wide variety of PaaS/IaaS solutions at scale. Based on its investment in OpenAI, the company has also emerged as a leader in AI. Microsoft has also enjoyed great success in upselling users on higher-priced Office 365 versions, notably to include advanced telephony features. These factors have combined to drive a more focused company that offers impressive revenue growth with high and expanding margins and deepening ties with customers.

We believe that Azure is the centerpiece of the new Microsoft. Even though we estimate it is already an approximately $75 billion business, it is still growing at approximately 30% annually. Azure has several distinct advantages, including that it offers customers a painless way to experiment and move select workloads to the cloud, creating seamless hybrid cloud environments. Since existing customers remain in the same Microsoft environment, applications and data are easily moved from on-premises to the cloud. Microsoft can also leverage its massive installed base of all Microsoft solutions as a touch point for an Azure move. Azure also is an excellent launching point for secular trends in AI, business intelligence, and Internet of Things, as it continues to launch new services centered around these broad themes.

Microsoft is also shifting its traditional on-premises products to become cloud-based SaaS solutions. Critical applications include LinkedIn, Office 365, Dynamics 365, and the Power Platform, with these moves now beyond the halfway point and no longer a financial drag. Office 365 retains its virtual monopoly in office productivity software, which we do not expect to change in the foreseeable future. Lastly, the company is also pushing its gaming business increasingly toward recurring revenues and residing in the cloud. We believe that customers will continue to drive the transition from on-premises to cloud solutions, and revenue growth will remain robust with margins continuing to improve for the next several years.

Read more about Microsoft here.

Jack Henry & Associates

• Morningstar Price/Fair Value: 0.67
• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Wide
• Industry: Information Technology Services

Jack Henry is a leading provider of core processing and complementary services, including electronic funds transfer, payment processing, and loan processing, for US banks and credit unions, with a focus on small and midsize banks. The firm earns a wide economic moat rating, and shares of its stock look 33% undervalued relative to our $191 fair value estimate.

Jack Henry remains committed to the idea that slow and steady wins the race. While larger peers built their leading positions in the bank technology space through a roll-up strategy and have since expanded their operations through mergers and acquisitions into areas outside of bank tech, Jack Henry historically built out its competitive position organically and remains squarely focused on the bank tech space. We think this approach has allowed Jack Henry to develop a wide moat, and we think the company will maintain its historical strategy and continue to modestly outperform its larger peers.

The company has not been without challenges recently. Jack Henry’s business is quite stable, with much of its revenue recurring under long-term contracts and related to essential services for banks and credit unions. Jack Henry’s revenue held basically flat following the financial crisis in 2008, which we believe was essentially a worst case for the industry from a macro perspective. However, the company’s near-term results can be influenced by bank M&A cycles due to the deconversion fees Jack Henry receives when bank clients are acquired by other banks. These fees fall almost entirely to the bottom line and as such can have an outsize impact on margins and profitability. Bank M&A has been muted recently, which has been a drag on results, although recent results suggest it has recovered.

Jack Henry has generally outperformed its larger peers in terms of growth, and we expect this to continue over time. We think the company’s focused set of platforms is a meaningful advantage that allows Jack Henry to pick up incremental share over time, although the high switching costs around its main core processing offering make this a very slow process.

Like other software companies, Jack Henry has faced some questions on the potential for artificial intelligence to affect its business model. However, we see this as very unlikely, given the mission-critical nature of its services for bank clients and the need for rock-solid security and reliability. Historically, banks have been extremely reluctant to change their core processing systems, and we think that will remain the case.

Read more about Jack Henry & Associates here.

PTC

• Morningstar Price/Fair Value: 0.71
• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Wide
• Industry: Software—Application

PTC is a US-based global company that offers high-end computer-assisted design, product lifecycle management, and augmented reality solutions that industrial manufacturers commonly use on factory floors. Trading 29% below our fair value estimate, PTC has a wide economic moat rating. We think shares of this stock are worth $160 per share.

PTC specializes in computer-aided design, or CAD, and product lifecycle management, or PLM, to help manufacturing companies run their businesses more efficiently. We think cloud-based software provides a stable, long-term tailwind for PTC, as the company is committed to using cloud technology to modernize the design and manufacturing process.

For customers with long operating histories with mature products like Creo and Windchill, PTC now provides software-as-a-service, or SaaS, solutions, like Creo+ and Windchill+, that retain all the core functionality of the original tool while introducing new cloud-based features that facilitate real-time collaboration and centralized control. For new customers that are not necessarily locked in with the existing on-premises ecosystem, PTC also prepared cloud-native CAD and PLM products, Onshape and Arena, that enable the complete benefits of a fully cloud-based manufacturing design workflow. We think it is prudent that PTC provides two different technological routes so customers can enjoy the maximum flexibility when capturing the economic upside from the SaaS business model. This approach minimizes the risk of customer backlash when a software vendor undertakes an overly aggressive timeframe for SaaS adoption, which we have seen happen in the past with some similar peer transitions.

We think PTC’s cloud-native products can also help the company expand its presence in the mid-market, thanks to Onshape and Arena’s cost friendliness and ease of use. Historically, Dassault Systèmes and Autodesk are the only two major companies supplying mid-market manufacturing design software, and we think PTC’s cloud-native experiences can provide many new features, such as lightweight real-time collaboration , that entry-level users find desirable. That said, before PTC can carve out a significant market share among mid-market customers, the company has to step up its efforts to enhance its asset library and ecosystem. PTC also needs to collaborate more closely with educational institutions to enlarge its user base, as schools are usually the initial touchpoints where manufacturing engineers gain exposure to professional software.

Read more about PTC here.

Bentley Systems

• Morningstar Price/Fair Value: 0.71
• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Wide
• Industry: Software—Application

Bentley Systems is a software vendor that caters to civil engineers, constructors, and geospatial professionals by enabling design, simulation, and data management of infrastructure assets such as roads and bridges. Bentley Systems is an affordable tech stock, trading at a 29% discount to our fair value estimate of $43 per share. The software application firm earns a wide economic moat rating.

After successfully carving out a niche in computer-aided design with its construction-oriented software, MicroStation, Bentley Systems has been continuously expanding its family of offerings beyond the public works and utilities vertical to broaden its total addressable market. We find the opportunities in the resources sector attractive for Bentley Systems. With its 2021 acquisition of Seequent, Bentley now owns an industry-leading geotechnical tool that uncovers the complexities under the surface, a capability that many mining and energy companies are looking for. We think the proportion of revenue contributed by resource customers is on track to reach one-third of the company’s total over the next few years.

Digital twin is an attractive long-term growth opportunity for Bentley Systems. Bentley’s iTwin and Synchro products provide a digital context of infrastructure design, construction, and operations, which translates to stable income throughout the asset’s decades-long lifecycle. That said, it will take time for digital twin solutions to penetrate the infrastructure market, as it will be a long-term evolution in infrastructure engineering. We think Bentley’s leadership in digital twin solutions will gradually reflect in the company’s financials over the long term.

Bentley Systems has nearly completed its sales channel transformation, with over 90% of revenue coming from direct sales channels. Continued investment in its Virtuosity e-store creates a streamlined self-serve experience, significantly reducing the barrier for small and midsize businesses to procure Bentley products. This is especially important for Bentley Systems’ long-term growth as the company lands hundreds of new customers each quarter, most of which are smaller infrastructure contractors. The direct sales channel can also give Bentley Systems more insight into usage patterns, aligning future product development with user needs. High direct sales penetration and a large subscription revenue base are key factors supporting our forecast for Bentley Systems’ double-digit revenue growth over the next decade.

Read more about Bentley Systems here.

Nvidia

• Morningstar Price/Fair Value: 0.73
• Morningstar Uncertainty Rating: Very High
• Morningstar Economic Moat Rating: Wide
• Industry: Semiconductors

Nvidia is a leading developer of graphics processing units. Trading 27% below our fair value estimate, Nvidia earns a wide economic moat rating. We think shares of this stock are worth $280 per share.

Nvidia has a wide economic moat, thanks to its market leadership in graphics processing units, hardware, software, and networking tools needed to enable the exponentially growing market around artificial intelligence. In the long run, we expect tech titans to strive to find second-sources or in-house solutions to diversify away from Nvidia in AI, but these efforts will, at best, only chip away at Nvidia’s AI dominance.

Nvidia’s GPUs run parallel processing workloads, using many cores to efficiently process data at the same time. In contrast, central processing units, such as Intel’s processors for PCs and servers, or Apple’s processors for its Macs and iPhones, process the data of “0’s and 1’s” in a serial fashion. The wheelhouse of GPUs has been the gaming market, and Nvidia’s GPU graphics cards have long been considered best of breed.

More recently, parallel processing has emerged as a near-requirement to accelerate AI workloads. Nvidia took an early lead in AI GPU hardware, but more importantly, developed a proprietary software platform, Cuda, and these tools allow AI developers to build their models with Nvidia. We believe Nvidia not only has a hardware lead but also benefits from high customer switching costs around Cuda, making it unlikely for another chip designer to emerge as a leader in AI training. Nvidia’s expansion into networking has been impressive, allowing customers to cluster AI GPUs together for AI training.

We think Nvidia’s prospects will be tied to the AI market, for better or worse, for quite some time. We expect leading cloud vendors to continue to invest in in-house, while AMD is also working on GPUs and AI accelerators for the data center. However, we view Nvidia’s GPUs and Cuda as the industry leaders, and the firm’s massive valuation will hinge on the pace of AI buildouts in the years ahead.

Read more about Nvidia here.

Fair Isaac

• Morningstar Price/Fair Value: 0.74
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Wide
• Industry: Software—Application

Fair Isaac rounds out our list of best tech stocks to buy. Founded in 1956, it is a leading applied analytics company. The stock is 26% undervalued relative to our fair value estimate of $1,600 per share.

Founded in 1956, Fair Isaac Corporation, or FICO, established itself as the industry leader in credit scores, which turned out to be a very lucrative business. Credit scores are used for more than just individual lending decisions; they are benchmarks used by investors, lenders, and the industry overall.

FICO scores account for about 60% of the firm’s revenue but over 80% of its profit. About 80% of scores revenue is business-to-business, whereby Fair Isaac sells its scores to lenders. Despite its industry-leading position, Fair Isaac seemed happy for many decades to keep scores pricing stable and generate higher revenue on higher volumes. In 2018, Fair Isaac began revamping its pricing strategy and started to increase pricing on its scores. We expect Fair Isaac to continue to push pricing in multiple categories as it has a strong position. In addition to selling credit scores to lenders, FICO also generates about $220 million in annual revenue from its consumer offerings, where it sells credit scores directly to consumers and through partners such as Experian.

The underlying data for FICO scores is sourced from the three major US credit bureaus (Equifax, Experian, and TransUnion), and as such, FICO scores are typically sold via these three firms. The relationship between the credit bureaus and FICO has ranged from adversarial to chummy. In 2006, the credit bureaus launched a joint venture called VantageScore, but this has failed to displace FICO. With Fair Isaac’s move to a direct licensing model, it aims to potentially disintermediate credit bureaus, which further incentivizes those bureaus to push the competing VantageScore, in our view.

The firm’s software business is diversified across use cases in financial services. Fair Isaac was ahead of the curve, in our view, in focusing on cloud migration in the early 2010s. A key recent focus has been putting its applications on the FICO platform, which is what Fair Isaac refers to as its modern and modular software offering. Retention rates and recurring revenue growth have been strong in recent years, which suggests to us that its software strategy is working.

Read more about Fair Isaac here.

How to Find More of the Best Tech Stocks to Buy

Investors who’d like to extend their search for top tech stocks can do the following:

• Review Morningstar’s comprehensive list of tech stocks to investigate further.
• Stay up to date on the tech sector’s performance, key earnings reports, and more with Morningstar’s tech sector page.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
• Use the Morningstar Investor screener to build a shortlist of tech stocks to research and watch.