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2 FTSE 100 technology stocks I’d buy today

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The FTSE 100 index isn’t known for its technology stocks. Unlike the US’s S&P 500 index, it doesn’t have tech giants like Apple and Microsoft.

However, a closer look at the Footsie reveals there are actually quite a few companies within the index that operate in the technology industry. Here’s a look at two FTSE 100 tech stocks I’d be happy to buy for my own portfolio today.

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A top FTSE 100 tech stock

One I like the look of right now is Experian (LSE: EXPN). It’s a major player in the consumer credit data space. Its solutions help organisations make faster, smarter decisions and lend responsibly.

A reason I’m bullish on Experian is that the company is in the process of enhancing its business model. In the past, it simply sold credit data to organisations. Now however, it’s selling it enhanced by ‘decisioning’ tools. These tools are designed to give customers more insights so that they can make better decisions. This shift in the business model should help drive growth.

Looking ahead, analysts expect Experian’s revenue and earnings for the year ending 31 March 2022 to grow 9% and 15% respectively.

One risk to the investment case here is a legal claim that was launched against the company recently. The claim – launched by law firm Harcus Parker on 26 February – alleges that Experian sold people’s data to advertisers for targeted marketing without their permission.

Experian believes there is no basis for the claim. However, this is certainly something to keep an eye on. If the case is successful, it would be a huge setback for the company. The stock’s valuation (forward-looking price-to-earnings (P/E) ratio of 28.5) also adds risk.

Overall however, I think the long-term risk/reward proposition is attractive. The stock’s recent pullback has presented a good buying opportunity, in my view.

A Footsie cybersecurity stock

Another FTSE 100 tech stock I like right now is Avast (LSE: AVST). It’s a leading cybersecurity company with over 435m users globally. Recently, demand for its products has surged as people have shifted to working from home.

Avast posted a solid set of full-year results for the year ended 31 December 2020 earlier this month. For the year, organic revenue growth was up 7.9%. Meanwhile, adjusted fully diluted earnings per share were up 9.8% to $0.35.

Looking ahead, the company said it expects to deliver FY2021 organic revenue growth in the range of 6-8%. “We are confident in our ability to unlock new growth opportunities, with a commitment to continued product and technological innovation, and a stronger-than-ever customer experience,” commented chief executive Ondrej Vlcek.

One risk to be aware of here is that hackers are becoming increasingly more sophisticated and cyberthreats are continually evolving. This means there’s no guarantee that Avast will be successful, even if the cybersecurity industry keeps booming.

All things considered however, I think this FTSE 100 tech stock has considerable investment appeal. The stock’s current P/E ratio of 17.1 seems very reasonable to me.

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Edward Sheldon owns shares in Apple, Microsoft, and Experian. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Apple and Microsoft. The Motley Fool UK has recommended Avast Plc and Experian and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.