New restrictions placed by many countries as a result of the COVID-19 Omicron variant’s spread have reenergized the use of technology to help remote people. Furthermore, increasing consumer spending on technology products should also fuel the technology industry’s growth. Accordingly, recent price declines may be a great time to place a bet on small-cap stocks of fundamentally sound technology stocks Mitek Systems (NASDAQ.), Benefitfocus. (NASDAQ.:), Zedge. (ZDGE). Let’s discuss these names.With the emergence of the omicron COVID-19 variant, several companies have delayed their return to their offices. Experts recommend that remote work be resumed to limit the spread of this variant. Global technology should be given a boost because advanced technology and cloud computing are essential for remote working.

Consumer Technology Association predicts that consumer spending on technology products and services will exceed $142.5 billion by 2021. The tech sector is expected to continue its growth because of the fact that companies from all industries invest heavily in technology upgrades to meet rapid digitalization. Investors’ interest in the technology industry is evidenced by the iShares Global Tech ETF’s (IXN) 29.3% returns over the past year versus the SPDR S&P 500 ETF Trust’s (SPY) 22.8% gains.

We believe it would be prudent to place a bet on small-captech stocks Mitek Systems, Inc., Benefitfocus, Inc., (BNFT) and Zedge, Inc., (ZDGE) given this background. They currently trade below 52-weeks highs but may see substantial upside in the future.

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