10 Tech Stocks to Buy According to Select Equity Group

Published January 12, 2022 at 9:51 am EST Updated August 19, 2026 at 7:00 am EDT

In this article, we discuss 10 tech stocks to buy according to Select Equity Group.

Select Equity Group is a New York-based employee-owned hedge fund, founded in the early 1990s. The hedge fund is operated primarily on the premise that solid research and long-term investing horizons will result in high returns. The portfolio at Select Equity Group is worth approximately $30 billion, and the fund manages discretionary assets under management of $43.9 billion as of Q3 2021.

Select Equity Group pursues long-only and long/short equity strategies, and invests in the materials, information technology, industrials, healthcare, finance, consumer discretionary, and communications sectors. The hedge fund serves global clients including endowments, foundations, public and corporate pensions, private banks, family offices, and high-net-worth individuals.

Select Equity Group’s top buys for the third quarter include Coupa Software Incorporated (NASDAQ:COUP), PowerSchool Holdings, Inc. (NYSE:PWSC), and Ceridian HCM Holding Inc. (NYSE:CDAY). Whereas, the hedge fund reduced holdings in GoDaddy Inc. (NYSE:GDDY), Cincinnati Financial Corporation (NASDAQ:CINF), and Signet Jewelers Limited (NYSE:SIG).

The most notable stocks in the third quarter portfolio of Select Equity Group include Visa Inc. (NYSE:V), PayPal Holdings, Inc. (NASDAQ:PYPL), and Alphabet Inc. (NASDAQ:GOOG).

Photo by Stephen Dawson on Unsplash

Our Methodology

We used the Q3 portfolio of Select Equity Group to select the fund’s top tech stocks. We ranked the securities according to the stake value of Select Equity Group in each holding.

Tech Stocks to Buy According to Select Equity Group

10. PowerSchool Holdings, Inc. (NYSE:PWSC)

Select Equity Group’s Stake Value: $238,025,000

Percentage of Select Equity Group’s 13F Portfolio: 0.79%

Number of Hedge Fund Holders: 11

PowerSchool Holdings, Inc., one of the leading American K-12 education technology companies, is one of the top tech stocks in Select Equity Group’s portfolio. The hedge fund acquired a stake in PowerSchool Holdings, Inc. in the third quarter of 2021, buying 9.6 million shares of the company, worth over $238 million, representing 0.79% of the total 13F securities.

Jefferies analyst Brent Thill on January 6 lowered the price target on PowerSchool Holdings, Inc. to $32 from $38 and kept a Buy rating on the shares as he adjusted his targets across the app, infrastructure, and security software spaces.

Publishing its Q3 results on November 10, PowerSchool Holdings, Inc. posted a loss per share of $0.04, missing estimates by $0.19. The quarterly revenue equaled $148.95 million, exceeding estimates by $6.58 million.

Among the hedge funds tracked by Insider Monkey, Robert Smith’s Vista Equity Partners is the largest PowerSchool Holdings, Inc. stakeholder from Q3 2021, with 75.4 million shares worth $1.85 billion. Overall, 11 hedge funds in the third quarter database of Insider Monkey were bullish on PowerSchool Holdings, Inc., with stakes totaling $2.27 billion.

In addition to Visa Inc., PayPal Holdings, Inc., and Alphabet Inc., PowerSchool Holdings, Inc. is a notable tech stock in the Q3 portfolio of Select Equity Group.

9. Trimble Inc. (NASDAQ:TRMB)

Select Equity Group’s Stake Value: $254,568,000

Percentage of Select Equity Group’s 13F Portfolio: 0.85%

Number of Hedge Fund Holders: 34

Select Equity Group elevated its position in Trimble Inc. (NASDAQ:TRMB) by 46% during the third quarter, holding a total of 3.09 million shares worth $254.5 million, representing 0.85% of the fund’s 13F portfolio. Trimble Inc. is a software, hardware, and services technology company that assists customers in the construction, agriculture, geospatial, utilities, government, and transportation sectors.

Trimble Inc. announced on October 27 that it has entered into a partnership with Microsoft Corporation (NASDAQ:MSFT), to increase digital transformation in the construction, transportation, and agriculture industries. The Trimble Construction Cloud will be powered by Microsoft Azure, which will expand Trimble Inc.’s construction solutions.

Impax Asset Management is the largest stakeholder of Trimble Inc. from the 34 funds that were bullish on the stock in the third quarter. Impax Asset Management holds a $653.4 million position in Trimble Inc..

On November 3, Trimble Inc. reported its third quarter results, posting earnings per share of $0.66, exceeding estimates by $0.05. Revenue over the period jumped 13.70% year-over-year to $901.40 million, outperforming estimates by $16.24 million.

Trimble Inc. disclosed on December 15 that it has acquired AgileAssets, a company specializing in powerful SaaS asset management solutions that equip organizations with advanced analytics for real-time decision making and insights for efficiently managing routine operations. The company also helps aging transportation infrastructure around the United States.

Piper Sandler analyst Weston Twigg initiated coverage of Trimble Inc. with an Overweight rating and a $101 price target on October 14. According to the analyst, Trimble Inc. will benefit from the shift to digitization among its customers, anticipating 10% annual recurring growth with the potential to accelerate as digitization efforts expand.

8. Visa Inc. (NYSE:V)

Select Equity Group’s Stake Value: $269,245,000

Percentage of Select Equity Group’s 13F Portfolio: 0.90%

Number of Hedge Fund Holders: 143

Visa Inc. is a multinational financial technology company offering credit cards and payment systems worldwide. Select Equity Group increased its stake in Visa Inc. by 65% in Q3 2021, owning 1.20 million shares of the company, worth $269.2 million.

On October 26, Visa Inc. declared a $0.375 per share quarterly dividend, which is a 17.2% increase from the prior dividend of $0.320. The dividend was paid on December 7, to shareholders of record on November 12.

Mizuho analyst Dan Dolev downgraded Visa Inc. to Neutral from Buy with a price target of $220, down from $255 on January 7.

Among the hedge funds tracked by Insider Monkey in Q3 2021, TCI Fund Management is the biggest Visa Inc. stakeholder, with approximately 20 million shares worth $4.44 billion. Overall, 143 funds were long Visa Inc. in the third quarter, down from 162 funds in the prior quarter.

Here is what L1 Capital has to say about Visa Inc. in its Q3 2021 investor letter:

“In our view, the payment network company, Visa, remains very well positioned to participate in an ever-expanding market for electronic payments. In time, ‘Buy now, Pay Later’ may have a modest impact on Visa’s transaction volumes, however in aggregate, we believe it will have the greater effect of supporting growth in electronic payments more broadly. Nearer term, we believe the recovery in international travel as the world gradually normalizes and learns to live with COVID-19 will be materially positive for Visa’s financial performance. eCommerce will also remain a positive key driver for Visa growth.”

7. Coupa Software Incorporated (NASDAQ:COUP)

Select Equity Group’s Stake Value: $306,387,000

Percentage of Select Equity Group’s 13F Portfolio: 1.02%

Number of Hedge Fund Holders: 52

Coupa Software Incorporated is a California-based company offering a global technology platform to assist with business spend management. Coupa Software Incorporated is a new arrival in Select Equity Group’s Q3 portfolio, with the hedge fund holding 1.39 million shares of the company, worth $306.3 million, representing 1.02% of the fund’s total investments.

Reporting its earnings for the quarter ending October 2021, Coupa Software Incorporated announced an EPS of $0.31, exceeding estimates by $0.28. Revenue over the period equaled $185.82 million, up 39.75% year-over-year, surpassing estimates by $7.93 million.

Goldman Sachs analyst Gabriela Borges initiated coverage of Coupa Software Incorporated with a Buy rating and a $251 price target on December 13, implying 61% upside. The analyst views Coupa Software Incorporated as a category leader “still early” in penetrating its business spend management total addressable market. She sees “several levers to growth” over the next three years for the company.

Stephen Mandel’s Lone Pine Capital is the largest Coupa Software Incorporated stakeholder as of Q3 2021, with 4.5 million shares worth over $1 billion. Overall, 52 hedge funds monitored by Insider Monkey were bullish on Coupa Software Incorporated in the third quarter, with stakes totaling $4.5 billion.

Here is what ClearBridge Investments has to say about Coupa Software Incorporated in its Q2 2021 investor letter:

“Within IT, we added positions in Coupa Software, a leader in the fast growing Business Spend Management market with opportunity to double its total addressable market by harnessing B2B payments with its Coupa Pay product; and AppLovin, a leading mobile gaming advertising network in a unique position to utilize its ad expertise to grow its own mobile game business at low user acquisition costs.”

6. Everbridge, Inc. (NASDAQ:EVBG)

Select Equity Group’s Stake Value: $573,975,000

Percentage of Select Equity Group’s 13F Portfolio: 1.92%

Number of Hedge Fund Holders: 23

Everbridge, Inc. (NASDAQ:EVBG), an American software company offering information about critical events, personal safety, and business continuity, is one of the top tech stock picks of Select Equity Group. On December 9, Everbridge, Inc. CEO David Meredith resigned unexpectedly, and the next day, the shares dropped 45% as investors sold the tech stock.

The hedge fund owns 3.80 million Everbridge, Inc. shares as of September 2021, worth approximately $574 million, representing 1.92% of the total 13F portfolio.

On November 9, Everbridge, Inc. announced its third quarter results, reporting earnings per share of $0.06, exceeding estimates by $0.20. The Q3 revenue equaled $96.75 million, up 35.77% from the prior-year quarter, surpassing estimates by $2.47 million.

Truist analyst Terry Tillman lowered the price target on Everbridge, Inc. to $85 from $185 but kept a Buy rating on the shares on December 27. The analyst updated his model to reflect the company’s “disappointing initial 2022 growth framework of 20% to 23%” that was provided at the time of its “surprise” CEO departure announcement a few weeks ago. The analyst noted that with the stock down 40%, sentiment has “over indexed to the negative”.

Among the hedge funds tracked by Insider Monkey in Q3, Daniel Patrick Gibson’s Sylebra Capital Management is one of the leading Everbridge, Inc. stakeholders, with a $303.2 million position in the company. Overall, 23 hedge funds were bullish on the stock in the third quarter.

Just like Visa Inc., PayPal Holdings, Inc., and Alphabet Inc., Everbridge, Inc. is a notable stock in the third quarter portfolio of Select Equity Group.

In its Q1 2021 investor letter, Baron Discovery Fund highlighted a few stocks and Everbridge Inc. is one of them. Here is what the fund had to say:

“Everbridge, Inc. provides a cloud-based software solution to companies for critical event management (“CEM”) as well as general population alerts for public authorities. Shares declined during the first quarter as part of the broader market rotation from high-valuation software stocks coupled with continued pandemic-related pressure on Everbridge’s organic growth rates. We retain conviction given the company’s significant lead over its competition and the early stage of CEM adoption, with just 2% of Everbridge’s 5,000-plus population alert customers having adopted CEM thus far.”

5. GoDaddy Inc. (NYSE:GDDY)

Select Equity Group’s Stake Value: $707,706,000

Percentage of Select Equity Group’s 13F Portfolio: 2.37%

Number of Hedge Fund Holders: 37

Select Equity Group owns 10.1 million GoDaddy Inc. shares in the third quarter, worth $707.70 million, representing 2.37% of the fund’s 13F portfolio. GoDaddy Inc. is an Arizona-based internet domain registrar and web hosting company, with more than 20 million customers worldwide.

GoDaddy Inc. announced on November 12 that it had purchased Pagely, which is a company offering a Managed WordPress Hosting Platform and cloud expertise. GoDaddy Inc. plans to create a top-notch WooCommerce SaaS platform that enables high levels of reliability, flexibility, and performance.

On November 3, GoDaddy Inc. announced its Q3 earnings, posting an EPS of $0.84, beating estimates by $0.17. Revenue for the quarter increased 14.16% year-over-year, reaching $964 million, outperforming estimates by $18.12 million.

Truist analyst Naved Khan kept his Buy rating and a $112 price target on GoDaddy Inc., saying the activist involvement by Starboard Value is an “incremental positive for the stock”.

Tim Hurd and Ed Magnus’ BlueSpruce Investments is one of the leading GoDaddy Inc. stakeholders from Q3 2021, with 6.72 million shares worth $468.4 million. Overall, 37 hedge funds were long GoDaddy Inc., with stakes amounting to $2.29 billion.

Here is what Canterbury Tollgate has to say about GoDaddy Inc. in its Q3 2021 investor letter:

“GoDaddy (GDDY) in particular sold off after reporting quarterly earnings in early August. Yet they are still growing the top line by more than 10 percent per annum. Short term pain creates opportunity. Presently GDDY trades at a greater than 5.5 percent trailing FCF yield, and a 7.2 percent 2021 yield based on my own (lower than consensus) estimation. Deferred revenue continues to improve. CEO Aman Bhutani and team have done an excellent job rebranding the company. I’m confident they will continue to address challenges along the way and keep GoDaddy on the right path.”

4. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC)

Select Equity Group’s Stake Value: $809,521,000

Percentage of Select Equity Group’s 13F Portfolio: 2.71%

Number of Hedge Fund Holders: 51

SS&C Technologies Holdings, Inc. is an American multinational financial technology company that provides software and SaaS solutions to the financial services industry. Select Equity Group owns 11.6 million shares of SS&C Technologies Holdings, Inc., worth $809.5 million, representing 2.71% of the fund’s Q3 portfolio.

In the third quarter of 2021, 51 hedge funds were bullish on SS&C Technologies Holdings, Inc., up from 49 funds in the preceding quarter. Alkeon Capital Management is one of the largest stakeholders of the company, with 5.3 million shares worth $373.75 million.

SS&C Technologies Holdings, Inc. declared on November 16 a quarterly per share dividend of $0.20, which reflects a 25% increase from the prior dividend of $0.16. The dividend was paid on December 15 to shareholders of record on December 1.

On December 1, SS&C Technologies Holdings, Inc. announced that the British multinational software company, Blue Prism Group plc (OTC:BPRMF), has agreed to be acquired for $1.6 billion. SS&C Technologies Holdings, Inc. will use this merger to gain access to Blue Prism Group plc (OTC:BPRMF)’s robotic process automation center.

In its third quarter earnings report, published on October 28, SS&C Technologies Holdings, Inc. posted an EPS of $1.32, beating estimates by $0.12. The $1.27 billion revenue over the period outperformed estimates by $33.47 million.

Credit Suisse analyst Kevin McVeigh initiated coverage of SS&C Technologies Holdings, Inc. with an Outperform rating and a $105 price target on January 7, stating that the company delivers software applications that help clients comply with complex financial services and healthcare requirements.

Here is what Vulcan Value Partners has to say about SS&C Technologies Holdings, Inc. in their Q4 2020 investor letter:

“SS&C Technologies Holdings Inc. is the leading provider of services to the financial sector. It owns several companies including ALPS Fund Services, Advent, GlobeOp, Intralinks, Eze, and DST. It operates an array of technology offerings for the financial services industry and provides mission-critical software. We like the company’s recurring revenue, high retention rates, strong free cash flow generation, and high rates of return on capital. Regulatory pressure, the need for greater transparency, and the growth of its core asset classes have led to greater demand for its services.”

3. Fidelity National Information Services, Inc. (NYSE:FIS)

Select Equity Group’s Stake Value: $1,105,814,000

Percentage of Select Equity Group’s 13F Portfolio: 3.71%

Number of Hedge Fund Holders: 69

Fidelity National Information Services, Inc. (NYSE:FIS) is a financial technology company from Florida, specializing in merchant solutions, banking, and capital market solutions. Select Equity Group boosted its stake in Fidelity National Information Services, Inc. by 40% in Q3 2021, holding over 9 million shares of the company, worth $1.10 billion. The stock accounts for 3.71% of the fund’s 13F portfolio.

Fidelity National Information Services, Inc. announced a quarterly per share dividend of $0.39 on October 21. The dividend was paid on December 27 to shareholders of record on December 13.

In the third quarter earnings report, published on November 4, Fidelity National Information Services, Inc. announced an EPS of $1.73, beating estimates by $0.05.

Wedbush analyst Moshe Katri lowered the price target on Fidelity National Information Services, Inc. to $130 from $182 and kept an Outperform rating on the shares. The analyst observed continued indications of choppy consumer spending, as well as likely reduced spending on non-discretionary items given the inflation levels.

Andreas Halvorsen’s Viking Global is one of the leading stakeholders of Fidelity National Information Services, Inc. as of September 2021, with more than 7 million shares worth $872.6 million. Overall, 69 hedge funds tracked by Insider Monkey in the third quarter were long Fidelity National Information Services, Inc..

Here is what Baron FinTech Fund has to say about Fidelity National Information Services, Inc. in its Q3 2021 investor letter:

“Fidelity National Information Services, Inc. provides software to financial institutions and enables merchants to accept electronic payments. The company reported solid quarterly financial results that exceeded expectations and raised annual guidance for revenue and earnings. However, the stock fell due to concerns that Fidelity National’s legacy technology is losing market share to newer competitors with more modern technology. We believe these concerns are overblown and that Fidelity National remains well positioned to grow revenues organically at a high single-digit rate and earnings at a double-digit rate over time.”

2. Ceridian HCM Holding Inc. (NYSE:CDAY)

Select Equity Group’s Stake Value: $1,197,801,000

Percentage of Select Equity Group’s 13F Portfolio: 4.02%

Number of Hedge Fund Holders: 20

Ceridian HCM Holding Inc., an American company offering SaaS human resources solutions, is one of the top tech stocks to buy according to Select Equity Group, with the hedge fund owning 10.6 million shares of the company, worth $1.19 billion, representing 4.02% of the total Q3 investments.

On December 6, Ceridian HCM Holding Inc. announced that it has acquired ADAM HCM, a Mexico-based payroll and HCM company, that provides HR solutions in 33 countries. Via this acquisition, Ceridian HCM Holding Inc. will become the leading provider of HCM solutions in Latin America, as well as tapping into new potential markets like Mexico and Brazil.

In its third quarter earnings report published on November 3, Ceridian HCM Holding Inc. posted an EPS of $0.05, beating estimates by $0.01. Revenue over the period jumped 25.83% year-over-year to $257.20 million, exceeding estimates by $3.04 million.

Wells Fargo analyst Michael Turrin downgraded Ceridian HCM Holding Inc. to Equal Weight from Overweight with a price target of $100, down from $135 on January 6.

A total of 20 hedge funds were bullish on Ceridian HCM Holding Inc. at the end of September 2021, down from 25 funds in the preceding quarter. Greg Poole’s Echo Street Capital Management is one of the largest stakeholders of Ceridian HCM Holding Inc., with 1.55 million shares worth $174.5 million.

Here is what Artisan Mid-Cap Fund has to say about Ceridian HCM Holding Inc. in its Q3 2021 investor letter:

“Ceridian is a cloud-based provider of payroll and related software. We began our investment campaign in early 2019 as we believed the company’s transition to a recurring revenue model via its Dayforce suite—which combines HR, payroll, benefits, workforce management and talent management into a single cloud application—would increase uptake for its products. We believed this would not only translate into margin expansion, but also enable the company to capture market share from larger legacy incumbents whose software is less nimble and more limited in functionality and operability. In Q2, Ceridian reported that Dayforce recurring revenue growth reaccelerated to 30% year-over-year and highlighted impressive new customer wins. In addition, the company has a building sales pipeline and is seeing early adoption for its Dayforce Wallet solution, which delivers on-demand digital payroll outside of traditional pay periods. We continue to believe Dayforce is an attractive modern cloud platform that has substantial runway to capture market share from legacy payroll incumbents, and Ceridian’s investments in its sales force and geographic expansion will help it capture this growth potential. Given our high level of conviction, we increased our position size and brought the stock into the CropSM.”

1. CDW Corporation (NASDAQ:CDW)

Select Equity Group’s Stake Value: $1,244,692,000

Percentage of Select Equity Group’s 13F Portfolio: 4.18%

Number of Hedge Fund Holders: 37

Select Equity Group owns 6.8 million shares of CDW Corporation (NASDAQ:CDW) as of Q3 2021, worth $1.24 billion, representing 4.18% of the fund’s 13F securities. CDW Corporation is an Illinois-based provider of technology products and services, serving enterprises, governments, and the education sector.

CDW Corporation purchased Sirius Computer Solutions from Clayton, Dubilier & Rice in December, which is a company providing mission-critical technology-based solutions for corporate and institutional customers. The total purchase price was $2.5 billion.

On November 3, CDW Corporation declared a C$0.50 per share quarterly dividend, which is a 25% increase from the prior dividend of C$0.40. The dividend was paid on December 10 to shareholders of record on November 24.

CDW Corporation announced its Q3 results on November 3, reporting earnings per share of $2.13, exceeding estimates by $0.08. The $5.30 billion revenue was up 11.43% year-over-year, but missed estimates by $23.49 million.

Evercore ISI analyst Amit Daryanani on December 14 reinstated coverage of CDW Corporation with an Outperform rating and a $225 price target. Despite PC worries, he expects CDW Corporation to “out-execute” and sustain high single-digit revenue and double-digit EPS growth.

In the third quarter of 2021, 37 hedge funds were long CDW Corporation, up from 27 funds in the prior quarter.

Here is what Wedgewood Partners has to say about CDW Corporation in its Q2 2021 investor letter:

“We have owned CDW stock for nearly two years now, and we have been quite pleased to see our thesis playing out as expected – even with the completely unexpected trauma of the pandemic fireworks during our holding period. These are the key components of our investment thesis, in simplistic form: First, the IT distribution and consulting industry is an attractive place to invest, with secular growth above that of the broad economy. Second, we expect the Company to continue to take share within the IT distribution and consulting industry, growing faster than the industry while continuing to improve margins and returns. The pandemic emerged shortly after our purchase, but even that did not alter the favorable dynamics underlying our thesis, as you can see below. (Click to read full text)

You can also take a look at 10 Tech Stocks to Buy According to Former VP Al Gore and 10 Stocks to Buy According to Mason Hawkins’ Southeastern Asset Management.

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