It has been another great year for the best tech stocks in 2016. As usual, large-cap tech stocks like Facebook Inc (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX) and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) dominated the headlines with their innovation.
Not only are these stocks popular to own, but Amazon, Google and Facebook are among the most highly rated stocks on Wall Street. In fact, all of these tech giants show up at the top of Bernstein’s list of the most crowded trades in the market.
Unfortunately, Bernstein notes that the most widely owned stocks tend to exhibit some unique trading behavior. First, they underperform during periods of overall market volatility. Second, they correlate with each other more than with the market as a whole. Finally, they react more negatively to negative news than they do positively to positive news.
Instead of chasing the herd in these crowded stocks, here are three of the best tech stocks that are flying under the radar.
Best Tech Stocks You’ve Never Heard Of: CACI International Inc (CACI)
CACI International Inc (NYSE:CACI) has all the elements investors look for in high-growth tech stocks. CACI provides simulation technology solutions for business systems, command and control, communications, cyber security and enterprise information technology.
Just this month, CACI announced a new $31 million contract with the U.S. Army and a $140 million contract with the U.S. Navy. With President-elect Donald Trump soon taking office, there will likely be a ramp-up in military spending ahead.
According to Finviz, CACI stock currently trades at a price-to-sales ratio of only 0.76. That ratio is much lower than all four FANG stocks. At the same time, CACI stock has delivered year-over-year revenue growth of 20% to 30% in the past three quarters. Those are the kind of growth numbers that tech stock investors like to see.
Perhaps that growth is why CACI stock has more than doubled the overall return of the tech sector in 2016. CACI stock is up 34% on the year.
Best Tech Stocks You’ve Never Heard Of: Amkor Technology, Inc. (AMKR)
Amkor Technology, Inc. (NASDAQ:AMKR) is…
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