2 UK tech stocks I’d buy in February

first_img2 UK tech stocks I’d buy in February The UK stock market isn’t known for its tech stocks. We don’t have mega-cap technology giants such as Apple and Amazon.However, in the mid-cap and small-cap areas of the UK market, there are actually plenty of exciting tech stocks. And many of these companies are growing at a phenomenal pace.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Here, I’m going to highlight two under-the-radar UK tech stocks I like the look of right now. I’d be happy to buy both for my portfolio today.A tech stock for the work-from-home trendOne of my preferred plays in the UK technology sector is Gamma Communications (LSE: GAMA). It’s a leading provider of unified communication solutions. This is a company I’ve been tracking for a number of years now and it has gone from strength to strength.Its share price has done well too. Over the last five years, it’s risen from 400p to 1,650p, although past performance isn’t indicative of future performance, of course. The reason I’m bullish on Gamma is that it’s benefitting from the work-from-home trend. Its communication solutions enable employees to work remotely, with little constraint in terms of access to resources and communications.I believe remote working is a trend that’s here to stay. Over the last year or so, attitudes towards working from home have changed dramatically. Not only has it become clear that technology enables us to work remotely without disruption, but we have also discovered that this working model offers advantages for both employers and employees. Gartner believes that, in the near future, over 40% of employees are likely to work from home at least some of the time.There are a few risks here, of course. If I’m wrong about remote working, and everyone ends up going back into the office post-Covid-19, Gamma’s growth could slow. The stock’s relatively high P/E ratio of 30 adds some valuation risk too.Overall, however, I believe the risk/reward proposition here is attractive.A UK cybersecurity stockAnother UK tech stock I like right now is Avast (LSE: AVST). It’s one of the world’s largest cybersecurity companies, with over 435m users globally.One reason I see the appeal in Avast is that demand for cybersecurity solutions is growing at a tremendous rate. Prior to Covid-19, cybercrime was already a huge problem globally. However, with many people now working from home, it has become even more of a pressing issue. Experts believe the global cybersecurity market could grow to $230bn this year. That represents growth of more than 25% from 2019.Avast’s recent performance has been impressive. Between FY2016 and FY2019, revenue climbed from $341m to $871m while net profit expanded from $25m to $249m. City analysts have pencilled in revenue and net profit of $952m and $372m for this financial year.One risk that concerns me here is the dynamic nature of the cybersecurity industry – threats are continually evolving. In other areas of technology, companies can take charge of their own destiny by improving their product offerings. However, in this industry, it’s the external threats themselves that dictate the roadmap. This means there’s an increased degree of stock-specific risk.Overall though, I think this tech stock has considerable appeal. Its forward-looking P/E ratio of 19 strikes me as quite reasonable. I’d be happy to buy AVST for my portfolio today. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Addresscenter_img See all posts by Edward Sheldon, CFA “This Stock Could Be Like Buying Amazon in 1997” Edward Sheldon, CFA | Thursday, 11th February, 2021 | More on: AVST GAMA Edward Sheldon owns shares in Apple, Amazon, and Gamma Communications. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon and Apple. The Motley Fool UK has recommended Avast Plc and Gamma Communications and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.last_img

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