CHICAGO, Oct. 28, 2011 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: International Business Machines (NYSE: IBM), Intel Corp (Nasdaq: INTC), Google, Inc. (Nasdaq: GOOG) and Apple, Inc. (Nasdaq: AAPL).

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Big Technology Quietly Booming

Is it just me or is it 1999 all over again? As Q3 earnings season rages on, I couldn't help but notice that both former and current titans of technology were reporting awesome results and logging new long-term highs.

Let's take a closer look at what is driving the action.

Global Reach

Big technology continues to benefit from the global economy and a global network of customers and vendors. In the old days, the fortunes of many companies swung with the strength of the domestic economy, but with strong emerging market demand and steady gains from developed economies, the big tech companies are no longer reliant upon sharp domestic GDP growth to drive sales and earnings.

The Private Sector is Strong and Spending

How many times do we hear how terrible the economy is? Well that happens to be true, as measured by GDP, employment and inflation. But the economy is totally different than the private sector, and make no doubt about it, the private sector is incredibly strong. Earnings are at a record, margins are fat and companies have record cash on the balance sheet. That has gone a long way to support business spending and investments, Dollars that flow directly into the pockets of big technology.

Big Tech is Lean and Mean

And finally, somewhat related to the last point, is that big tech is lean and mean, forced to tighten its belt and become more competitive in the wake of the financial crisis of 2008. Keep in mind, the Great Recession wasn't a private-sector issue, it was a financial-sector issue. But the collateral damage of that experience caused otherwise healthy companies to step up their game and become even more efficient. That continues to show up in both earnings and margins.

So now that we have a composite view of the conditions supporting the earnings growth of big technology, let's go ahead and take a closer look at four top picks from the category.

Top Four Big Technology Stocks

International Business Machines (NYSE: IBM) is a Zacks #2 Rank stock that operates in an industry rank of 27 out of 265. The company has an average earnings surprise of 2% over the last four quarters, and although that might not blow anyone away at first glance, that is a very steady performance in what has been a crazy market. Analysts are looking for 11% earnings growth next year, pushing shares of IBM to a new all-time high.

Intel Corp (Nasdaq: INTC) is also a Zacks #2 Rank stock with an impressive average earnings surprise of 14% over the last four quarters. A next-year growth projection of 5% is a little more modest, but when considering that shares are trading at less than 10X forward earnings, there is some serious value at hand. That has shares trading at a 5-year high.

Google, Inc. (Nasdaq: GOOG) has bounced back strong from a rare earnings miss two season ago, reporting two consecutive earnings surprises after founder Larry Paige took the CEO helm from Eric Schmidt. Beyond that, GOOG is a Zacks #2 Rank stock that operates in an industry rank of 39 out of 265. Analysts are looking for 19% earnings growth next-year, and with a PEG ratio of less than 1, this technology powerhouse also has value. Shares are back to $600.

And finally, we have Apple, Inc. (Nasdaq: AAPL), the undisputed king of technology. Apple has been looking unusually vulnerable lately with the passing of iconic CEO Steve Jobs and a very rare earnings miss. But that miss was more of a technicality related to the iPhone 4, with analysts quickly raising estimates in response. Analysts are now looking for earnings of $39 in 2012, so when adding in the company's prodigious cash position, this is a serious value stock. As it stands, shares are trading back above the $400 level, within striking distance of the all-time high just shy of $428.

The Takeaway

Big technology won't boom like early-stage small caps, but clearly the group is cashing in on a healthy private sector and strong business spending. And with valuations looking very attractive, big technology could be a great way to pick up some nice long-term gains without battling the growing pains and volatility of small and mid caps.

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