The Nasdaq composite climbed 0.7% to hit a new high of 12,464.23 on Dec 4. The index’s astonishing rise from the lows hit in March has been primarily driven by technology stocks that have shown remarkable resilience amid the coronavirus outbreak. Notably, Nasdaq is up 38.9% year to date.
Tech stocks have primarily benefited from changing consumer preference and behavior. The stay-at-home trend has driven demand for web-based services like e-commerce, contactless payment and delivery.
Moreover, the company’s offering remote-working tech, cloud services and cybersecurity solutions, which support work-from-home, online learning and remote health diagnosis, are expected to continue to benefit in the long haul.
Further, improving 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 memory and sensors. For 2021, growth is currently projected at 8.4% based on double-digit growth of memory and optoelectronics.
Additionally, positive vaccine data along with improving visibility over further stimulus bodes well for Nasdaq.
Here we pick four Nasdaq-listed tech stocks that apart from boasting strong fundamentals have a favorable combination of a Growth Score of A and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Per the Zacks’ proprietary methodology, stocks with such a perfect mix of elements offer solid investment opportunities.
Notably, each of these tech stocks has a market cap of more than $1 billion and has outperformed the S&P 500 composite on a year-to-date basis.
Year-to-Date Performance
Top Bets
MACOM Technology Solutions MTSI is benefiting from growing proliferation of cloud services. Also, solid demand for high-performance analog components such as TIAs, CDRs and drivers, which are required in 100G deployment, are strengthening MACOM’s presence in the data center market.
This Zacks Rank #1 company with Growth Score A is set to launch products related to 5G and data center lasers and silicon photonics that are expected to drive growth.
MACOM currently has a market cap of $3.26 billion. The Zacks Consensus Estimate for the company’s fiscal 2021 earnings is pegged at $1.63 per share, having been revised 10.1% upward in the past 30 days, suggesting 66.3% growth from the figure reported in the year-ago quarter.
The Trade Desk (NASDAQ:TTD) TTD is benefiting from the momentum in programmatic ad buying. Further, the emergence of digital content boosted the usage of this $42.45-billion company’s inventory across all forms of ConnectedTV (“CTV”). Moreover, recovering ad demand and spending scenario is expected to drive the top line.
This Zacks Rank #1 company has a Growth Score B. The Zacks Consensus Estimate for its 2020 earnings is pegged at $4.44 per share, having been revised 51.5% upward in the past 30 days, suggesting 20.3% growth from the figure reported in the year-ago quarter.
Synaptics (NASDAQ:SYNA) SYNA is well poised to capitalize on its market-leading position for both touchpads and secure fingerprint sensors amid upbeat trends in PC shipments. Moreover, the company’s digital audio solutions are witnessing strong demand with premium headsets that primarily serve enterprise customers.
Synaptics carries a Zacks Rank #2 and a Growth Score B. The consensus mark for this $2.82-billion company’s fiscal 2021 earnings is pegged at $6.86 per share, having been revised 12.6% upward in the past 30 days. It indicates 15.3% growth from the figure reported in the year-ago quarter.
Advanced Energy Industries (NASDAQ:AEIS) AEIS is benefiting from increasing industrywide investments in complex 3D NAND devices, DRAM and logic. Moreover, strengthening momentum across hyperscale customers and enterprise OEMs are key catalysts for this Zacks Rank #2 company. Additionally, the successful integration of Artesyn has resulted in significant synergies (roughly $30 million) and record accretion ($1 per share over the past four quarters).
Advanced Energy Industries has a Growth Score of A. The Zacks Consensus Estimate for its 2020 earnings is pegged at $5.10 per share, having moved 17.5% north in the past 30 days. It calls for 109% growth from the figure reported in the year-ago quarter.
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