Technology stocks offer investors the promise of growth in ways few other sectors can. After all, tech is synonymous with innovation, spawning new products, services, and features.

Over the past 12 months, the Morningstar US Technology Index rose 20.82%, while the Morningstar US Market Index gained 15.49%.

The 5 best tech stocks to buy now

These were the most undervalued tech stocks that Morningstar’s analysts cover as of Jan. 30, 2026.

  1. Adobe ADBE
  2. Tyler Technologies TYL
  3. ServiceNow NOW
  4. SAP SAP
  5. Broadridge Financial Solutions BR

To come up with our list of the best tech stocks to buy now, we screened for:

  • Technology stocks that are undervalued, as measured by our price/fair value metric.
  • Stocks that earn a wide Morningstar Economic Moat Rating. We think companies with wide economic moat ratings can fight off competitors for at least 20 years.
  • Stocks that earn a Low, Medium, High, or Very High Morningstar Uncertainty Rating, which captures the range of potential outcomes for a company’s fair value.

Here’s a little more about each of the best tech stocks to buy, including commentary from the Morningstar analysts who cover each company. All data is as of Jan. 30, 2026.

Adobe

  • Morningstar Price/Fair Value: 0.52
  • Morningstar Uncertainty Rating: High
  • Morningstar Economic Moat Rating: Wide
  • Industry: Software - Application

Software application firm Adobe is the most affordable stock on our list of the best tech stocks to buy. Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing, and engaging with compelling content on multiple operating systems, devices, and media. The stock is trading 48% below our fair value estimate of $560 per share.

Adobe has come to dominate in content creation software with its iconic Photoshop and Illustrator solutions, both now part of the broader Creative Cloud. Over the years, the firm has added new products and features to the suite through organic development and bolt-on acquisitions to drive the most comprehensive portfolio of tools used in print, digital, and video content creation. The December 2021 launch of Adobe Express helps further broaden the company’s funnel, as it incorporates popular features of the full Creative Cloud but comes in lower-cost and free versions. The 2023 introduction of Firefly marks an important artificial intelligence solution that should also attract new users and help extend the competitive position of the platform. We think Adobe is properly focusing on bringing new users under its umbrella and believe that converting these users will become more important over time.

CEO Shantanu Narayen provided Adobe with another growth leg in 2009 with the acquisition of Omniture, a leading web analytics solution that serves as the foundation of the digital experience segment that Adobe has used as a platform to layer in a variety of other marketing and advertising solutions. Adobe benefits from the natural cross-selling opportunity from Creative Cloud to the business and operational aspects of marketing and advertising.

The Document Cloud is driven by one of Adobe’s first products, Acrobat, and the ubiquitous PDF file format created by the company, and it is now a multibillion-dollar business. The rise of smartphones and tablets, coupled with bring-your-own-device and a mobile workforce have made a file format that is usable on any screen more relevant than ever.

Adobe believes it is attacking an addressable market well in excess of $200 billion. The company is introducing and leveraging features across its various cloud offerings to drive a more cohesive experience, win new clients, upsell users to higher price point solutions, and cross-sell digital media offerings. We expect M&A efforts will continue to bolster all aspects of Adobe’s portfolio, which it surely will do to defend against emerging competitors.

Tyler Technologies

  • Morningstar Price/Fair Value: 0.57
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Economic Moat Rating: Wide
  • Industry: Software - Application

Tyler Technologies provides a full suite of software solutions and services that address the needs of cities, counties, schools, courts and other local government entities. The firm earns a wide economic moat rating, and the shares of its stock look 43% undervalued relative to our $650 fair value estimate.

We view Tyler Technologies as the clear leader in a sleepy and underserved public service software niche market. We believe there is a decadelong runway for normalized top-line growth near 10% at Tyler, especially as demand for SaaS accelerates and the need to modernize local governments’ legacy enterprise resource planning systems intensifies.

The company’s three core products are Munis, which is the core ERP system, Odyssey, which is the court management system, and a web-enabled transactional platform. These systems enable normal operations of governmental units, including financial management, human resources, revenue management, tax billing, and asset management. Tyler addresses the needs of cities, counties, schools, courts, and other local government entities. We believe existing core systems at customer sites are at least 20 years old and running on ancient software code where there is no next wave of incoming, fluent programmers to keep these systems running. We think extending the life of these legacy systems is no longer tenable.

Tyler has also moved more meaningfully toward more transactional recurring revenue through several avenues. E-filing for court documents and local village hall web portals for basic services like paying a water bill online have been the primary sources for these revenues over the past five years. Further, the April 2021 acquisition of NIC Inc., a leader in government solutions and payments, punctuated this move to more transactionally recurring revenue in our view.

Last, we see Tyler’s expanding portfolio as driving larger deals that encompass more solutions. While the company used to fight for every $100,000 deal, it now has established enough of a reputation in the governmental market that it is called upon in most relevant government system searches. The potential clients have certainly grown larger, as evidenced by a variety of statewide e-filing, transactional, and court system deals that are worth tens of millions of dollars annually. Further, Tyler benefits from a fragmented market that includes no companies at anywhere near its size or scale that are focused on the local public institution market.

ServiceNow

  • Morningstar Price/Fair Value: 0.59
  • Morningstar Uncertainty Rating: High
  • Morningstar Economic Moat Rating: Wide
  • Industry: Software - Application

Next on our list of the best tech stocks to buy is ServiceNow. ServiceNow Inc provides software solutions to structure and automate various business processes via a software-as-a-service delivery model. The stock is trading at a 41% discount to our fair value estimate of $200 per share.

ServiceNow has been successful so far in executing a classic land-and-expand strategy. First, it built a best-of-breed SaaS solution for IT service management based on being modular and flexible, having a superior familiar user interface, offering a way to automate a wide variety of workflow processes, and becoming a platform to serve as a single system of record for the IT function within the enterprise. Having established itself in the ITSM market and the IT operations management market, the firm moved beyond the IT function. The same set of product design features and technologies allowed ServiceNow to bring its process automation approach to HR service delivery, customer service, finance, and operations. The firm then introduced more sophisticated and industry-specific versions of its core solutions. In September 2023, ServiceNow was one of the first software companies to release generative artificial intelligence solutions. Each of these products carries higher pricing to help drive incremental growth and boost margins.

ServiceNow’s success has been rapid and organic. The company already offers high-end enterprise-grade solutions and boasts elite-level customer retention of 98%. ServiceNow focuses on the largest enterprises in the world and these customers continue to renew for larger contracts containing more products. Additionally, customers overall are re-upping for more than one solution, as more than 75% of customers are multiproduct purchasers, which is driving deal sizes higher. Further, the company has no small business exposure.

We believe that having the IT function within an enterprise as the initial landing pad is fortunate, as it provides a built-in advocate for software (an IT responsibility) for other functional areas of the enterprise. ServiceNow will continue to use its position to land new IT-driven customers and upsell ITOM features on the platform, but we believe the firm will increasingly cross-sell emerging products in HR and customer service. In our view, product strength, market presence, and a strong sales push into areas outside of IT, will continue to drive robust growth.

SAP

  • Morningstar Price/Fair Value: 0.63
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Economic Moat Rating: Wide
  • Industry: Software - Application

Founded in Germany in 1972 by former IBM employees, SAP is the world’s largest provider of enterprise application software. SAP is an affordable tech stock, trading at a 37% discount to our fair value estimate of $317 per share. The software application firm earns a wide moat rating.

SAP is the world’s largest provider of enterprise application software and global market leader in enterprise resource planning software. The company earns revenue by selling subscriptions for its various cloud-based software-as-a-service products as well as licenses and maintenance fees for on-premises software, which are now being largely phased out. Besides its core ERP products such as S/4HANA, SAP offers well-known back-office software products such as Concur for travel and expense management and Ariba for procurement.

The company was late to the cloud for ERP software but now offers two compelling products: RISE with SAP, which is the private-cloud edition designed for SAP’s large enterprise customers that are transitioning from their SAP on-premises ERP (ECC) to SAP S/4HANA; and GROW with SAP, which is the public cloud edition that is designed for midmarket companies with less complex requirements. We think GROW with SAP fills an important void in SAP’s product offering as previously SAP’s ERP software was often unattractive to smaller customers given the implementation costs were just too high. With the launch of these new products, cloud revenue is growing swiftly and SAP is capturing many new midmarket customers.

SAP is following a land-and-expand strategy, which is common in the enterprise software market. RISE with SAP and GROW with SAP are the land products, after which the company then upsells and cross-sells more SAP products to these customers, which is much easier in a cloud-based model. The company has yet to release its latest long-term ambitions, but it expects revenue growth to accelerate at least through 2027 along with rising margins as the cloud business reaches efficient scale.

Broadridge Financial Solutions

  • Morningstar Price/Fair Value: 0.68
  • Morningstar Uncertainty Rating: Low
  • Morningstar Economic Moat Rating: Wide
  • Industry: Information Technology Services

Information technology services company Broadridge Financial Solutions rounds out our list of best tech stocks to buy. Broadridge Financial Solutions, which was spun off from Automatic Data Processing in 2007, is a leading provider of investor communication and technology-driven solutions to banks, broker/dealers, traditional and alternative-asset managers, wealth managers, and corporate issuers. The stock is 32% undervalued relative to our fair value estimate of $290 per share.

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates over 30% of its fee revenue and EBITDA from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Since its spinoff from Automatic Data Processing in 2007, Broadridge has streamlined its operations and expanded into adjacent markets. After years of losses in its clearing business, Broadridge sold it to Penson Worldwide in 2010. It also entered into an IT-services agreement with IBM in 2010 to increase efficiency. Expanding on its mailing, data security, and processing capabilities, Broadridge has completed at least 25 acquisitions since 2010. Notable purchases include DST’s North American customer communications business for $410 million in 2016 and RPM Technologies for $300 million in 2019. The NACC business provides print and digital communication solutions, content management, postal optimization, and fulfillment to a variety of sectors, including financial services, utilities, and healthcare. RPM provides enterprise wealth-management software solutions and services. In 2021, Broadridge acquired Itiviti, a provider of order and execution management trading software and order routing networking and connectivity solutions, for $2.5 billion, which was pricey, in our view.

During its December 2023 investor day, Broadridge laid out three-year annual goals including recurring revenue growth of 7%-9% (organic 5%-8%), adjusted operating margin expansion of at least 50 basis points, and adjusted earnings-per-share growth of 8%-12%. These targets are similar to its prior three-year goals, which Broadridge largely achieved.

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