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Explosions in Innovation Lead the Way for Soaring Profits

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Despite recent selloffs in some of the big name stocks like Facebook and Netflix, it's clear that technology is leading the pack when it comes to driving the stock market, the economy and, in many ways, society in general.

There are 627 stocks in the technology sector, spread out over 55 discrete industries... from Satellite & Communications down to Nanotechnology. Where should investors look to find the most promising opportunities? There's a lot of ground to cover!

Different individuals will likely be on the look-out for different things, based on their trading styles and preferences. But regardless of your personality, there are 3 specific characteristics I recommend to help you select stocks with the best chances of success -- in addition to the Zacks Rank, of course.

If you're familiar with me, you know I'm an aggressive growth strategist. But I'm still biased towards long-term investing.

When you can find stocks that are going to keep climbing for months or years, it makes sense to buckle up and enjoy the ride. And because tech stocks -- even the mega-caps -- can jump higher so quickly, I'd rather maintain my strongest positions longer so we don't miss out on those big moves.

So even though the tech space is fast-paced and constantly changing, I still advise you to take a longer-term focus.

By the way, technology isn't going anywhere. More accurately, the world doesn't seem to be going anywhere without tech. The key is finding spaces where you can camp out and make outsized gains for the foreseeable future.

More . . .


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5 Stocks that Could Rival Apple's Profit Explosion

Not long ago, this technology was almost unthinkable. But today, thanks to an explosion of innovation, not only is it real, but it's radically changing a multitrillion dollar global industry.

Five strong companies stand to soar in much the same way as Apple did after launching the iPhone in 2007. Zacks has released a Special Report revealing these stocks and giving more insight on how to profit from this cutting-edge field.

See these 5 breakthrough stocks now >>

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With that in mind, here are the 3 traits you should look for:

1) Find trends supported by "smart money", established companies and institutional investors

Pay close attention to emerging technologies that big companies are themselves investing huge sums of money into. Either they're acquiring smaller companies, entering into partnerships to gain access to their breakthroughs or they're spending millions to launch new business units of their own.

Also, if you catch wind of institutional investors getting in on the action, your ears should perk up. Hedge funds, investment banks and the Warren Buffetts of the world do exhaustive research before plowing billions into a company or trend. You should definitely do your own research as well -- and make the right decision for yourself. But keep in mind that institutional ownership is a positive indicator that a company has a bright future ahead.

2) It should have a large potential market

You've probably heard that when Thomas Watson was president of IBM in 1953, he predicted that "I think there is a world market for maybe five computers." Boy, was he wrong!

There's often some question about how widespread a technology will become. Only time will tell, really. But some developments seem like obvious winners.

Take, for example, the smart phone. Once the idea of carrying around a phone in your pocket or purse became accepted by the mainstream, the path was paved; any new innovation had a ready market of millions of mobile phone users.

In 2007, Apple released the first iPhone and Google released its Android operating system. Both companies' stock prices soared as a result.

Apple sold its 1 billionth iPhone last year... and 700 million of them are currently in use around the world. Android has 2.3 billion users across multiple devices.

That's just one illustration, but you understand the point. Niche technologies will have a more difficult time becoming lucrative long-term investments. A larger potential market gives companies a better chance to generate massive revenue -- and reward its investors.

3) Major economic and/or social impact can help keep a trend (and its leaders) in place

No matter how you feel about the company or its products, Facebook has changed the way we communicate and connect with each other. The rapid growth of social networks is largely due to the impact Facebook has made.

Amazon has transformed the way we shop (and use the cloud to securely store data). Behind Amazon's leadership, retail ecommerce sales surpassed $2 trillion in 2017, and the space is expanding fast.

More generally, as the Internet of Things becomes more and more enmeshed in our daily lives, experts forecast the technology could add $11.1 trillion in economic impact through increased speed, minimized waste, etc.

Companies that move us forward economically or socially can become some of the best-performing stocks in your portfolio.

And you can feel good about owning them, too.


5 Stocks to Capitalize On Now

Today, there is one emerging technology that fits all 3 of the criteria above.

The technology is widely acknowledged as the next evolution of a well-established, multitrillion-dollar global industry.

Strong growth companies are already spending billions on research, development and acquisitions.

In many ways, I see this investment opportunity as similar to the early days of the smart phone era. Look back at 2007 when the iPhone and Android came out. Neither Apple nor Google were startups. They were already strong companies that had dominated in other industries.

Since then, their shares have skyrocketed 10X and 3X respectively.

I invite you to download a Special Report revealing what this exciting technology is. Demand for this breakthrough is predicted to explode from practically zero to 42 billion by 2025. Even better, the report reveals 5 stocks to exploit the opportunity.

I encourage you to check out this report right away. Your chance to access our report ends midnight Sunday, August 5.

Get the Report Now >>

Best,

Brian

Brian Bolan is Zacks' aggressive growth expert and the editor of the Stocks Under $10 and Home Run Investor portfolios.