The tech-heavy Nasdaq composite has been outperforming the other popular indexes over the past month. Some of its member stocks have surpassed consensus estimates in their recently reported quarterly results, and investors appear to be growing optimistic about the tech sector’s recovery from its recent sell-off. Two prominent stocks in the index, Broadcom Inc. (NASDAQ:AVGO) and Gilead Sciences Inc . (NASDAQ:GILD), are expected to perform extremely well in the coming months because of their ability to capitalize on their respective industry tailwinds. So, let’s take a closer look at these names’ prospects.The tech-heavy Nasdaq has outperformed the S&P 500 and Dow Jones Industrial Average over the past month, gaining 6.7%. This outperformance has been driven primarily by solid corporate earnings reported by some index heavyweights, and investors’ optimism over the recovery of tech stocks that witnessed a sell-off lately.
Tech stocks, which are typically more growth-oriented, have managed to improve their financials in the last quarter, as evidenced by the better-than-expected and higher-than-year-ago revenues and earnings reported by most of the tech companies that have so far reported quarterly results.
With most tech players now raising their earnings forecasts, the index is expected to maintain its momentum in the near term. Thus, we believe prominent Nasdaq stocks Broadcom Inc. (AVGO) and Gilead Sciences Inc. (GILD) are well positioned to soar.