Tech stocks ruled in 2024. One pro picks 3 under-the-radar ones to play this year

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Tech stocks ruled in 2024. One pro picks 3 under-the-radar ones to play this year
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'There are several reasons to be optimistic for global tech stocks this year,' says Martin Frandsen of Principal Asset Management.

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Tech stocks reigned supreme in 2024, with many investors favoring some of the so-called "Magnificent Seven" stocks of Alphabet , Amazon , Apple , Meta Platforms , Microsoft , Nvidia and Tesla , as well as other lesser-known companies. Principal Asset Management's Martin Frandsen continues to see potential in the Magnificent Seven this year, but also sees value in other stocks within the sector.

The company is known for its "development and production of high-performance drones designed for military and defense applications," the strategist said. Shares in Kratos have gained about 55% in the last 12 months. Of the 13 analysts covering the stock, eight have a buy or overweight rating while the remaining five have a hold call, according to FactSet data. Their average price target is $30.17, giving the stock 2.7% upside potential.

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