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Nasdaq Tops 11,000: 5 Best Stocks With Room for More Upside

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Amid the broad market rally that started in late March, the Nasdaq Composite Index has been outperforming. On Aug 6, the index topped the milestone of 11,000. The tech-heavy index completed its 1000-point journey in 40 trading days, representing the fastest-ever rise in 20 years.

The index has soared more than 60% since Mar 23 when it hit a low, while the other two major indices — the S&P 500 and the Dow Jones Industrial Average index — have climbed 50% and 47%, respectively. Most of the gains were driven by soaring technology stocks, which have gained steadily on a rapidly growing digital world thanks to the coronavirus pandemic. The so-called FAANG stocks have been hitting multiple highs on robust demand for online products and services. Notably, the tech giant Apple AAPL has become the world’s most-valuable company, dethroning state-owned oil Saudi Aramco, with a market capitalization close to $2 trillion.

Consumer services’ stocks, the second-largest holding on the Nasdaq Index, also moved up given the surge in online shopping due to store closures and strict stay-at-home orders. Also, encouraging developments in the treatment for the novel coronavirus charged up the medical sector.

Apart from these, better-than-expected earnings and unprecedented stimulus measures have led to a spike in stocks. Further, hopes of more stimuli and the positive development in the coronavirus vaccine by number of biotech and pharma companies instilled confidence.

That said, many stocks on the Nasdaq Index have been surging. Below we have highlighted five stocks that have been leading the way higher this year and are poised to continue their bullish trend given that these have a Zacks Rank #1 (Strong Buy) or 2 (Buy), a Growth Score of B or better and a solid estimated earnings growth rate. You can see the complete list of today’s Zacks #1 Rank stocks here.

Novavax Inc. (NVAX - Free Report) – Up 4108.5%

This Maryland-based specialty biopharmaceutical company is engaged in the development of innovative vaccines to prevent serious infectious diseases. The Zacks Consensus Estimate for this year has moved up from a loss of $2.58 per share to earnings of $5.45 per share over the past 90 days, suggesting year-over-year growth of 198.9%. Novavax has a Zacks Rank #2 and Growth Score of B.

Veritone Inc. (VERI - Free Report) – Up 412.8%

This California-based company provides artificial intelligence (AI) and computing solutions in the United States and the United Kingdom. The stock has seen solid earnings estimate revision of 17 cents over the past 90 days and has an estimated growth rate of 47.5%. It has a Zacks Rank #2 and Growth Score of A.

Kopin Corporation (KOPN - Free Report) – Up 368.7%

This Massachusetts-based company is a leading developer and provider of innovative wearable technologies and solutions for integration into head-worn computing and display systems to military, industrial and consumer customers. The stock has witnessed no earnings estimate revision for this year over the past three months and has an expected earnings growth rate of 54.1%. It has a Zacks Rank #2 and Growth Score of A.

Quidel Corporation (QDEL - Free Report) – Up 280.3%

This California-based company discovers, develops, manufactures and markets point-of-care, rapid diagnostic tests for detection of medical conditions and illnesses. The stock has seen solid earnings estimate revision of $6.96 for this year over the past three months and has an estimated earnings growth rate of 255.5%. Quidel has a Zacks Rank #1 and Growth Score of B.

Unum Therapeutics Inc. (UMRX - Free Report) – Up 266.5%

This Massachusetts-based biopharmaceutical company is focused on the development and commercialization of novel immunotherapy products of immune system to cure cancer. The stock has witnessed solid earnings estimate revision of 44 cents for this year over the past three months and has an expected earnings growth rate of 54.8%. It has a Zacks Rank #2 and Growth Score of B.

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