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5 Soaring Tech Stocks that Gained More than 60% in 2016
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In the highly competitive technology sector, the majority of the companies invest billions in their research and development divisions to stay ahead of the curve. Innovation and efficiency have always been the primary drivers here.
In 2016, the drivers include the increasing penetration of semiconductor devices into new applications, the proliferation of mobile devices, the growing importance of Internet services and cloud computing coming of age, increasing IoT applications, among others.
As computer technology advances at a breakneck speed, demand for computer components and networks continues to grow. The continuous mobile phone upgrades will increase demand for RF content, therefore providing these technology companies ample opportunities to boost top-line growth in the coming years. Big Data, IoT and Bring Your Own Device are the other major trends. Investments in new technologies like flash storage and faster processing chips are long-term growth drivers.
2016 Technology Sector Performance
Despite a highly volatile first half, the technology sector did pretty well for the whole of 2016. Among the various sectors, technology remained one of the outperformers with Technology Select Sector SPDR ETF (XLK - Free Report) registering year-to-date (YTD) and one-month returns of 14.3% and 2.47%, respectively.
Launched in Dec 1998, XLK is a passively managed fund designed to deliver the returns of the U.S. technology stocks. The fund, before expenses, is expected to remain onpar with the returns and characteristics of the S&P Technology Select Sector Index.
Infact, considering the year-to-date (YTD) performance the computer and technology industry has gained approximately 10.0%. Other market parameters, namely Dow Jones Industrial Average (DJI), NASDAQ Composite (IXIC) and the S&P 500 (GSPC) have gained 14.1%, 9% and 10.7%, respectively.
In view of these bullish sentiments, investing in stocks with big positive YTD returns can be a winning strategy.
Key Picks
Using our easy-to-use Zacks screener, we select five technology stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and witnessed a price change of more than 60% YTD. Moreover, these have a VGM score of A.
Applied Materials, Inc. (AMAT - Free Report) is one of the world’s largest suppliers of fabrication equipment to semiconductor, LCD and solar PV cell manufacturers.
Shares of Applied Materials climbed 7.56% in the last three months. The company has a market cap of $35.1 billion and is likely to witness 37.1% earnings growth in fiscal 2017. Additionally, the stock sports a Zacks Rank # 1. Also, the stock has gained 74.50% YTD, outperforming the Zacks Categorized Semiconductor Equipment - Wafer Fabricaton industry’s average return of 42.44%.
Amkor Technology, Inc. (AMKR - Free Report) is the world's largest independent provider of semiconductor packaging and test services. Also, the company is one of the leading developers of advanced semiconductor packaging and test technology.
Shares of the company surged 17.78%in the last three months. The company has a market cap of$1.6 billion and is likely to witness 55.9% earnings growth in 2016, while for 2017, growth is anticipated to be 50.9%. The stock carries a Zacks Rank #2 and has added 81.91% YTD, outperforming the Zacks Categorized Electronic Semiconductor industry’s gain of 53.35%.You can see the complete list of today’s Zacks #1 Rank stocks here.
Finisar Corporation is a provider of fiber optic subsystems, network test and monitoring systems which enable high-speed data communications over local area networks.
Shares of the company has surged 7.57% in the last three months. The company has a market cap of $3.4 billion and is likely to witness 21.8% earnings growth in fiscal 2018. Additionally, the stock sports a Zacks Rank #1. Also the stock has gained 116.99% YTD, outperforming the Zacks Categorized Fiber Optics industry average return of 50.80%.
NCR Corporation and its subsidiaries provide technological solutions (both products and services) to help organizations connect, interact and transact with customers and solidify customer relationship.
Shares of the leading consumer transaction technology provider surged 30.7% in the last three months. The company has a market cap of $5.17 billion and is likely to witness 7.3% earnings growth in 2016, while for 2017, growth is anticipated to be 9.3%. Additionally, the stock carries a Zacks Rank #2. It has returned 70.69% YTD, outperforming the Zacks Categorized Computer- Integrated Systems industry’s gain of 30.39%.
TTM Technologies Inc. (TTMI - Free Report) provides time-critical, one-stop manufacturing services for highly complex printed circuit boards.
Shares of this company surged 24.37% in the last three months. The company has a market cap of $1.49 billion and is likely to witness 275.0% earnings growth in 2016, while for 2017, growth is anticipated to be 15%. Additionally, the stock sports a Zacks Rank #1.The stock has added119.51% YTD, outperforming the Zacks Categorized Electronic Miscellanoeous Componentsindustry’s gain of 9.51%.
Looking Ahead
The abovementioned stocks are in the spotlight with striking performances supported by solid earnings results and strong growth projections. Keeping this in mind, we believe investing in these stocks would yield strong returns in the short term.
Where Do Zacks' Investment Ideas Come From?
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>
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5 Soaring Tech Stocks that Gained More than 60% in 2016
In the highly competitive technology sector, the majority of the companies invest billions in their research and development divisions to stay ahead of the curve. Innovation and efficiency have always been the primary drivers here.
In 2016, the drivers include the increasing penetration of semiconductor devices into new applications, the proliferation of mobile devices, the growing importance of Internet services and cloud computing coming of age, increasing IoT applications, among others.
As computer technology advances at a breakneck speed, demand for computer components and networks continues to grow. The continuous mobile phone upgrades will increase demand for RF content, therefore providing these technology companies ample opportunities to boost top-line growth in the coming years. Big Data, IoT and Bring Your Own Device are the other major trends. Investments in new technologies like flash storage and faster processing chips are long-term growth drivers.
2016 Technology Sector Performance
Despite a highly volatile first half, the technology sector did pretty well for the whole of 2016. Among the various sectors, technology remained one of the outperformers with Technology Select Sector SPDR ETF (XLK - Free Report) registering year-to-date (YTD) and one-month returns of 14.3% and 2.47%, respectively.
Launched in Dec 1998, XLK is a passively managed fund designed to deliver the returns of the U.S. technology stocks. The fund, before expenses, is expected to remain onpar with the returns and characteristics of the S&P Technology Select Sector Index.
Infact, considering the year-to-date (YTD) performance the computer and technology industry has gained approximately 10.0%. Other market parameters, namely Dow Jones Industrial Average (DJI), NASDAQ Composite (IXIC) and the S&P 500 (GSPC) have gained 14.1%, 9% and 10.7%, respectively.
In view of these bullish sentiments, investing in stocks with big positive YTD returns can be a winning strategy.
Key Picks
Using our easy-to-use Zacks screener, we select five technology stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and witnessed a price change of more than 60% YTD. Moreover, these have a VGM score of A.
Applied Materials, Inc. (AMAT - Free Report) is one of the world’s largest suppliers of fabrication equipment to semiconductor, LCD and solar PV cell manufacturers.
Shares of Applied Materials climbed 7.56% in the last three months. The company has a market cap of $35.1 billion and is likely to witness 37.1% earnings growth in fiscal 2017. Additionally, the stock sports a Zacks Rank # 1. Also, the stock has gained 74.50% YTD, outperforming the Zacks Categorized Semiconductor Equipment - Wafer Fabricaton industry’s average return of 42.44%.
Amkor Technology, Inc. (AMKR - Free Report) is the world's largest independent provider of semiconductor packaging and test services. Also, the company is one of the leading developers of advanced semiconductor packaging and test technology.
Shares of the company surged 17.78%in the last three months. The company has a market cap of$1.6 billion and is likely to witness 55.9% earnings growth in 2016, while for 2017, growth is anticipated to be 50.9%. The stock carries a Zacks Rank #2 and has added 81.91% YTD, outperforming the Zacks Categorized Electronic Semiconductor industry’s gain of 53.35%.You can see the complete list of today’s Zacks #1 Rank stocks here.
Finisar Corporation is a provider of fiber optic subsystems, network test and monitoring systems which enable high-speed data communications over local area networks.
Shares of the company has surged 7.57% in the last three months. The company has a market cap of $3.4 billion and is likely to witness 21.8% earnings growth in fiscal 2018. Additionally, the stock sports a Zacks Rank #1. Also the stock has gained 116.99% YTD, outperforming the Zacks Categorized Fiber Optics industry average return of 50.80%.
NCR Corporation and its subsidiaries provide technological solutions (both products and services) to help organizations connect, interact and transact with customers and solidify customer relationship.
Shares of the leading consumer transaction technology provider surged 30.7% in the last three months. The company has a market cap of $5.17 billion and is likely to witness 7.3% earnings growth in 2016, while for 2017, growth is anticipated to be 9.3%. Additionally, the stock carries a Zacks Rank #2. It has returned 70.69% YTD, outperforming the Zacks Categorized Computer- Integrated Systems industry’s gain of 30.39%.
TTM Technologies Inc. (TTMI - Free Report) provides time-critical, one-stop manufacturing services for highly complex printed circuit boards.
Shares of this company surged 24.37% in the last three months. The company has a market cap of $1.49 billion and is likely to witness 275.0% earnings growth in 2016, while for 2017, growth is anticipated to be 15%. Additionally, the stock sports a Zacks Rank #1.The stock has added119.51% YTD, outperforming the Zacks Categorized Electronic Miscellanoeous Componentsindustry’s gain of 9.51%.
Looking Ahead
The abovementioned stocks are in the spotlight with striking performances supported by solid earnings results and strong growth projections. Keeping this in mind, we believe investing in these stocks would yield strong returns in the short term.
Where Do Zacks' Investment Ideas Come From?
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>