The Nasdaq composite closed at 12,771.11 on Dec 23, down 0.29% on the day but has been up 42.3% year to date. Notably, the tech-heavy index soared 92.6% from the coronavirus-induced Mar 23 low of 6631.42.
Moreover, Nasdaq has outperformed the S&P 500 Index and the Dow Jones Industrial Average, which rose 14.2% and 5.6% each, on a year-to-date basis.
Nasdaq’s remarkable performance can be primarily attributed to tech’s resiliency. Tech stocks primarily benefited from changing consumer preferences and behavior. The stay-at-home trend drove demand for web-based services like e-commerce, contactless payment and delivery.
Moreover, the company’s offering of remote-working technology, cloud services and cybersecurity solutions, which support work-from-home models, online learning and remote health diagnosis, are expected to continue driving growth prospects of the tech stocks.
Heightening hacking risks as evident from the latest FireEye Solarwinds incident is fueling demand for cybersecurity solutions. Moreover, improving PC shipments, aided by strong demand for desktops, notebooks and workstations benefited the tech stocks.
Further, rising global semiconductor sales is a major positive. Per the latest data from The World Semiconductor Trade Statistics (WSTS), the world semiconductor market is expected to increase 5.1% from 2019 driven by strength in memory and sensors.
Meanwhile, accelerated adoption of cloud computing amid rapid digitalization is a key catalyst. The coronavirus-induced work-from-home and online learning wave spurred demand for chips from the PC manufacturers and data-center operators. Data-center operators enhanced their capacities to meet the spike in demand for cloud services. This also benefited tech companies, this year.
6 Top Performers
Nasdaq’s scintillating performance so far has been propelled by a number of tech stocks. Here we discuss six winners that have returned more than 250% year to date.
Year-to-Date Performance
Waitr Holdings
’
WTRH
shares have returned 900% on a year-to-date basis. This $365.18-million company’s growth can be attributed to an extending footprint, added grocery and alcohol delivery services and strengthening customer service. Moreover, the launch of contactless ordering system dine-in is a key lever.
The Zacks Consensus Estimate for this currently Zacks Rank #2 (Buy) company’s fiscal 2021 earnings is pegged at 19 cents per share, having moved a penny in the past 60 days.
Digital Turbine
’s
APPS
shares have returned a whopping 697.5% year to date. This $5.30-billion company is gaining traction from robust demand for its cloud-based mobile software offerings as enterprises continued the shift from on-premise to cloud environments, especially amid the coronavirus lockdown.
Moreover, this presently Zacks #2 Ranked company’s diversified partner base, a large content business partner and the rollouts with newer international partners are expected to drive the top line.
The Zacks Consensus Estimate for fiscal 2021 earnings has moved 34% north to 63 cents per share in the past 60 days.
Shares of
CrowdStrike Holdings
CRWD
have returned 348.5% on a year-to-date basis. The currently #2 Ranked company is riding on buoyant demand for cyber-security solutions owing to the slew of data breaches and the increasing need for security and networking products amid the COVID-19 pandemic-led remote working trend.
This $49.76-billion company’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps adding users. The consensus mark for its 2020 bottom line is pegged at 22 cents per share and has been revised a whopping 266.7% upward in the past 60 days.
The
Zscaler
ZS
stock has skyrocketed 346.2% year to date. This currently Zacks Rank #2 company is benefiting from surging demand for cyber-security solutions owing to massive data breaches. Growing demand for privileged access security on digital transformation and cloud-migration strategies is a key driver.
Zscaler has a market cap of $27.75 billion. The consensus mark for fiscal 2021 earnings is pegged at 37 cents per share, having been raised 27.6% in the past 60 days.
Pinterest
(PINS) shares have been up 291.6% year to date. The social media provider is benefiting from user base expansion, boosted by coronavirus-led lockdown. Availability of features like Today and Shop tab for Pinners are primary tailwinds. Moreover, enhanced product offerings, wider Pinner and advertiser base, and simplified ad systems through Verified Merchant Program and Pinterest Partners Program for small businesses bode well.
This $44.72-billion company has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for its 2020 bottom line is pegged at 31 cents per share, having moved a staggering 244.4% north in the past 60 days.
The Trade Desk
TTD
shares have been up 255.7% year to date. The presently Zacks Rank #1 (Strong Buy) company is benefiting from the momentum in programmatic ad buying. You can see the complete list of today’s Zacks #1 Rank stocks here.
Further, the emergence of digital content boosted the usage of this company’s inventory across all forms of ConnectedTV (CTV). Additionally, recovering ad demand and spending scenario is expected to bolster the top line.
The Zacks Consensus Estimate for this $45.61-billion company’s 2020 earnings stands at $4.99 per share, having been revised 58.4% upward in 60 days’ time.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.
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