Photographer: Andrew Harrer/Bloomberg

Credit Suisse Has a Trio of Non-FANG Tech Stocks to Buy

Look to the less-loved in 2016.

"FANG"—otherwise known as Facebook, Amazon.com, Netflix, and Google (Alphabet)has done a lot during the past year to drive not only the tech sector but the overall market.

With shares in some of the four having more than doubled in value, investors are wondering if the group has room to run. For FANG disbelievers, Credit Suisse has three additional tech names it views as great bets in 2016.

According to a note from analysts led by Stephen Ju, investing in such smaller-cap names as LinkedIn, MercadoLibre, and Yelp could prove quite fruitful. Unlike FANG, these names have struggled over the past year.

Credit Suisse provided a few reasons for liking each company. LinkedIn's plan to boost revenue and operating profit margins are cited. In MercadoLibre's case, the team believes the stock might have been beaten up too much on currency and macro headwinds. Finally, the team likes the "controversial, out-of-favor, and out-of-consensus" Yelp, arguing that it is has space to enhance sales, especially internationally. 

FANG members continue to be Credit Suisse favorites among large-cap companies.

"As we have already rolled forward our valuation parameters to end-of-2016 on our last sector report, we have not seen material changes to our price targets for our favorite names heading into 2016," the analysts concluded.

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