2 Tech Stocks to Buy Hand Over Fist This Month

NASDAQ: SSNC | SS&C Technologies Holdings Inc. News, Ratings, and Charts

SSNC – Increasing demand for advanced technologies in almost every industry as part of a widespread digital transformation, and a low interest rate environment, position the tech industry to generate solid growth. So, we think fundamentally sound tech stocks SS&C (SSNC) and Avid (AVID) should deliver significant returns in the near term.

After suffering a slump earlier this year due to investors’ rotation to cyclical stocks, the tech space is again attracting investors’ attention. Increasing adoption of advanced technological solutions in every industry and the expected continuation of low interest rates are the key factors driving the recovery in tech stocks. Investors’ renewed interest in the sector is evident in the Technology Select Sector SPDR Fund’s (XLK) 4.6% returns over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 1.1% gains.

The Federal Reserve recently signaled that interest rates will remain at the current near zero level and that the central bank will not raise rates on inflation fears alone. This bodes well for tech stocks. As a result, the tech-heavy Nasdaq Composite has been hitting new highs. According to GoRemotely, the tech industry is expected to hit  a $5 trillion market value by year’s end.

Given this backdrop, we think it makes sense to bet on SS&C Technologies Holdings, Inc. (SSNC - Get Rating) and Avid Technology, Inc. (AVID - Get Rating) now. These companies’ solid financials and constant innovations should help these stocks continue advancing.

SS&C Technologies Holdings, Inc. (SSNC - Get Rating)

Windsor, Conn.-based SSNC provides software products and services mainly to the financial and healthcare industries. The company’s software-enabled services include SS&C GlobeOp, SS&C Retirement Solutions and Bluedoor. Its software products include portfolio management software, trading software, and banking and lending solutions.

SSNC announced on May 14, 2021, that it had amended the Scheme Implementation Deed with Mainstream Group Holdings Limited and had proposed to acquire the company. Mainstream is  a provider of investment administration and fund accounting, among other services, to leading fund managers and superannuation funds, family offices and dealer groups. As such, the  acquisition could  prove to be a profitable one for SSNC.

The company’s revenue increased 5.1% year-over-year to $1.23 billion for the first quarter, ended March 31, 2021. Its operating income grew 23% year-over-year to $269.10 million, while its net income increased 76.3% year-over-year to $174.90 million. The company’s EPS increased 75.7% year-over-year to $0.65.

For the current quarter, ending June 30, 2021, analysts expect SSNC’s EPS to increase 9.6% year-over-year to $1.14. It surpassed  consensus EPS estimates in each of the trailing four quarters. For the quarter ending September 30, 2021, its revenue is expected to be $1.21 billion, which represents a 7.1% year-over-year rise. The stock has surged 25.4% over the past year to close yesterday’s trading session at $72.62.

SSNC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system. It has a B grade for Momentum, Stability, Growth, Quality, Sentiment, and Value.

For the rest of SSNC’s grades click here. SSNC is ranked #1 of 59 stocks in the Software – Business industry.

Click here to check out our Software Industry Report for 2021

Avid Technology, Inc. (AVID - Get Rating)

AVID develops, which is based in  Burlington, Mass., markets, sells, and supports software and integrated solutions for video and audio content creation, management, and distribution worldwide. The company’s video products and solutions include the Media Composer—a cloud-enabled solution used to edit video content. Its audio products and solutions comprise Pro Tools digital audio software solutions to facilitate the audio production process.

On June 6, NBC Olympics  selected AVID to provide the content production and media management platform, tools and solutions for its production of the Games of the XXXII Olympiad. This selection could further increase AVID’s  revenue in the coming months.

AVID’s net revenue surged 9.1% year-over-year to $94.36 million in fiscal first quarter (ended March 31, 2021). Its gross profit grew 15.5% year-over-year to $61.42 million. Its net income came in at $4.39 million, compared to a $5.86 million net loss in the prior-year period, while its EPS came in at $0.10, compared to a $0.14 loss per share in the year-ago period.

Analysts expect AVID’s EPS and revenue to increase 91.7% and 15.5%, respectively, year-over-year to $0.23 and $91.54 million for the current quarter, ending June 30, 2021. It surpassed the Street’s EPS estimates in each of the trailing four quarters. The stock has gained 414.6% over the past year to close yesterday’s trading session at $38.08.

AVID’s POWR Ratings reflect this promising outlook. The company has an overall A rating, which translates to Strong Buy in our proprietary ratings system.

The stock has an A grade for Growth and Quality, and a B grade for Momentum and Sentiment. Within the Technology – Services industry, AVID is ranked #4 of 71 stocks.

To see the additional POWR Rating for AVID (Stability and Value), click here.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


SSNC shares were trading at $72.78 per share on Thursday afternoon, up $0.16 (+0.22%). Year-to-date, SSNC has gained 0.50%, versus a 14.41% rise in the benchmark S&P 500 index during the same period.


About the Author: Nimesh Jaiswal


Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
SSNCGet RatingGet RatingGet Rating
AVIDGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Has the Bull Market Run Out of Steam?

It seems the S&P 500 (SPY) advance has stalled and cant crack above strong resistance at 6,000. Why is that happening? And what happens next? Read on for the answers...

Investors Remain “Cautiously Optimistic”

The S&P 500 (SPY) has made great advances since the lows of early April. Yet seem to be stuck under resistance at 6,000. What happens next depends on tariff talks. So let’s talk about the latest news on that front.

Bull Market Til Proven Otherwise

The phrase that paid for investors in 2025 was “Bull market til proven otherwise” Steve Reitmeister explains why in his latest market update and preview of top stock picks.

Investor Alert: Mission Accomplished?

The S&P 500 (SPY) has broken out above the 200 day moving average. Does that mean that bear market fears are now over? And should investors be riding the bull to new heights? Read on for Steve Reitmeister’s answer...

Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Read More Stories

More SS&C Technologies Holdings Inc. (SSNC) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All SSNC News