Tech stocks have been on a tear this summer.
Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) have both risen to valuations of $1 Trillion. The tech-heavy Nasdaq just ended its best August since 2000, ending the month up nearly 6%. And so far this year, stocks like Advanced Micro Devices (NASDAQ: AMD) and 3D Systems (NYSE: MMM) are up well over 100%.
In the second half of the year, the question now is which tech stocks still have room to run and two stocks in particular look set to deliver significant gains in the short term.
These aren’t stocks you’ll see a lot of headlines about. But both have “Buy” ratings across the analysts that cover them, as well as price targets that would see each at least 30% higher.
Here’s what you need to know about these two stocks.
Asure Software (NASDAQ: ASUR)
This tiny Texas-based software company is growing rapidly. So rapidly, in fact, that Barrington Research set a price target for the stock late last month of $25, suggesting a gain of nearly 79%.
“The company’s consistent record of generating double-digit organic growth, large cross-selling potential and sound acquisition strategy make us optimistic about its long-term growth potential,” wrote Barrington Research analyst Vincent Colicchio.
Asure Software (NASDAQ: ASUR) provides cloud-based software-as-a-service (SaaS) solutions to help companies operate more efficiently, including time and labor management and workspace management solutions.
Analysts have a consensus “Buy” rating on ASUR with an average price target of $21, 50% higher than the price as of this writing.
Limelight Networks (NASDAQ: LLNW)
Limelight Networks (NASDAQ: LLNW) enables companies to bypass internet congestion to deliver their digital content across internet, mobile, and social media channels. Limelight’s solutions also enable more responsive apps, consistent downloads, and higher quality video content.
In Q2, Limelight delivered positive earnings for the first time since becoming a public company, reporting operating cash flow of $8 million – beating analysts’ estimates by $5 million.
“Robust top-line growth beat our Street-high revenue estimates by 60bps,” wrote Oppenheimer analyst Timothy Horan. “The company has made great progress on product quality, which has enabled it to close the gap on pricing with competitors and drive up margins.”
Horan also wrote that he sees Limelight as a “unique buying opportunity” as the company is now moving forward after surviving some major headwinds and as industry trends improve.
Horan isn’t the only analyst positive on the stock. The consensus twelve-month price target for LLNW is $6, indicating possible upside of 27%, and the analyst at Cowan recently issued a price target of $6.50 – 38% higher than current prices.