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5 Tech Stocks to Buy With More Than 100% YTD Gains for a Solid 2021

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Tech stocks have shown remarkable momentum so far this year amid the coronavirus-led disruptions, primarily fueled by changing consumer preference and behavior. Markedly, the tech-heavy Nasdaq has surged 38.3%, year to date.

The pandemic-induced stay-at-home wave has spurred demand for web-based services like e-commerce, contactless payment and delivery. Moreover, the work-from-home and online-learning wave is keeping demand for remote-working tech, cloud services and cybersecurity solutions high.

Although vaccine availability might somewhat dent the prospects of tech stocks facilitating work-from-home and online learning in 2021, the rapid adoption of cloud computing, along with the ongoing infusion of AI and machine learning as well as the accelerated deployment of 5G technology, blockchain, autonomous vehicles, AR/VR and wearables are major positives.

Growing importance of Hybrid cloud among enterprises is driving investments from large public cloud providers, including Amazon Web Services, Microsoft Azure, Google Cloud, International Business Machines and Oracle.

In addition, heightening hacking risks, as evident from the latest FireEye incident, is fueling demand for cybersecurity solutions. (Read More: 3 Security Stocks to Watch in a Challenging Industry)

Further, emerging technologies like quantum computing, Edge computing and SASE are other bright spots.

Here we discuss five tech stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) that have been up more than 100%, year to date, and have room for further growth driven by the above-mentioned trends. You can see the complete list of today’s Zacks #1 Rank stocks here.

Year-to-Date Performance

 

Top Picks

The Trade Desk’s (TTD - Free Report) shares have soared 253.2%, year to date. The company is benefiting from the momentum in programmatic ad buying. Furthermore, the emergence of digital content has boosted the usage of this $42.45-billion company’s inventory across all forms of ConnectedTV (“CTV”). Also, recovering ad demand and spending scenario is likely to boost the top line.

The Trade Desk currently flaunts a Zacks Rank of 1. The Zacks Consensus Estimate for 2020 earnings is pegged at $4.44 per share, having been revised 5% upward in 30 days’ time. For 2021, the consensus mark for earnings has moved 2% north to $4.58 per share over the same time frame.

Turtle Beach (HEAR - Free Report) is riding on the coronavirus-induced demand for video games and esports. The company’s products have hit a new wave of growth on the success of battle royale shooter Fortnite, which has surpassed 355 million users worldwide. Additionally, the company is anticipated to gain from the strong demand for its products driven by the new consoles from Microsoft and Sony. Shares of the company have surged 117.2% in the year-to-date period.

Turtle Beach currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for fiscal 2021 earnings is pegged at $1.84 per share, having been revised 36.3% upward in the past 30 days. For fiscal 2022, the consensus mark for earnings has moved up 9% to $1.58 per share during the same time frame.

NVIDIA’s (NVDA - Free Report) stock has appreciated a whopping 120.5% in the year so far. The company is benefiting from the pandemic-induced work-from-home and learn-at-home wave. This Zacks Rank #2 company has witnessed solid demand for GeForce desktop and notebook GPUs, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand is a tailwind for the company’s Data Center business. Expansion of NVIDIA GeForce NOW is expected to fortify the user base.

The Zacks Consensus Estimate for fiscal 2021 earnings is pegged at $9.66 per share, having been revised 5.8% upward in 30 days’ time. For fiscal 2022, the consensus mark for earnings has moved 4.1% north to $11.48 per share over the same time frame.

Zscaler (ZS - Free Report) is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches. Increasing demand for privileged access security on digital transformation and cloud-migration strategies is a key growth driver. The Zacks Rank #2 company’s portfolio strength boosts its competitive edge and helps add users. Furthermore, a strong presence across verticals, such as banking, insurance, healthcare, public sector, pharmaceuticals, telecommunications services and education, is a key catalyst. Shares of Zscaler have returned 286.6%, year to date.

The consensus mark for fiscal 2021 earnings is pegged at 37 cents per share, having been raised 27.6% in the past 30 days. For fiscal 2022, the consensus mark for earnings has moved up 9.6% to 57 cents per share during the same time frame.

Generac Holdings (GNRC - Free Report) is gaining from robust demand for portable and home standby generators owing to higher power outage events. The company is working aggressively to boost production levels and plans to increase capacity early in the second half of 2021 in a bid to address the growing demand for home standby generators. The stock has rallied 110.1% in the year-to-date period.

Generac carries a Zacks Rank of 2, at present. The consensus mark for fiscal 2021 earnings stands at $8.66 per share, having moved 21.1% north over the past 30 days. For fiscal 2022, the consensus mark for earnings has moved 8.6% upward to $8.35 per share over the same time frame.

 

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