ETF Analyst: Underperforming Tech Stocks May Offer Big Returns
ETF Action co-founder Mike Akins suggests software, cloud computing, and disruptive technology companies could deliver significant returns in the latter half of the year.
London – Mike Akins, co-founder of ETF Action, is advising investors to increase their exposure to technology sectors that have lagged behind the success of artificial intelligence-focused megacompanies.
Akins told CNBC’s “ETF Edge” that software and cloud computing businesses, whose valuations have fallen from “nosebleed” levels, present strong growth scenarios.
"These companies prove that 'yes,' we still do need software to do our day-to-day jobs," Akins stated. He also highlights disruptive technology as an attractive buy over the next six months.
He also pointed to the “Magnificent Seven” group of stocks, which underperformed the Nasdaq-100 in the first half of the year. Akins considers the group a potential catch-up trade for the second half, with its performance already showing signs of a rebound.
Furthermore, Akins sees potential in small and mid-cap companies as 2027 approaches, specifically citing their earnings growth and the potential expansion of previously depressed multiples.