Tech Stocks Catching Earnings Signal Buy: EcoPulse

Shares of large-cap technology companies are poised to outpace the market as their stock prices are starting to reflect more stable demand -- illustrated by analysts’ earnings expectations.

The Standard & Poor’s 500 Information Technology Index -- with Apple Inc.(AAPL:US), Microsoft Corp. (MSFT:US) and 63 other members -- has risen 9.4 percent in the past three months, compared with a 5.1 percent gain in the S&P 500. That follows 18 months when the tech group lagged behind the benchmark index by 18 percentage points.

The shift reflects investors who see business improving for many of these companies, including those specializing in software or hardware, said Walter Todd, who oversees about $950 million as chief investment officer of Greenwood Capital Associates LLC in Greenwood, South Carolina.