The Nasdaq composite closed at 12,755.64 on Dec 18, down 0.07% on the day but up 42.2% year to date. Notably, the tech-heavy index is up 92.4% from the coronavirus-induced Mar 23 low of 6631.42.
Moreover, Nasdaq has outperformed the S&P 500 index and the Dow Jones Industrial average, which are up 14.8% and 5.8%, on a year-to-date basis, respectively. Nasdaq’s scintillating performance can be primarily attributed to tech’s resiliency. 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, companies 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 over the long haul. Growing importance of Hybrid cloud among enterprises is drawing 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 and Solarwinds incidents, is fueling demand for cybersecurity solutions. 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 strength in memory and sensors. Moreover, biotech stocks engaged in coronavirus-related research played a key role in driving Nasdaq’s performance. 5 Stocks That Have Helped Nasdaq Achieve Record Highs
Here we discuss five stocks that have helped Nasdaq achieve record highs this year. Notably, each of these stocks has a market cap of more than $10 billion.
The Trade Desk ( TTD Quick Quote TTD - Free Report) shares are up 266.2% year to date. The Zacks Rank #1 (Strong Buy) company is benefiting from the momentum in programmatic ad buying. You can see the complete list of today’s Zacks #1 Rank stocks here. Further, the emergence of digital content boosted the usage of this company’s inventory across all forms of ConnectedTV (“CTV”). Additionally, recovering ad demand and spending scenario is expected to drive the top line. The Zacks Consensus Estimate for this $44.69-billion company’s 2020 earnings is pegged at $4.44 per share, having been revised 52% upward in 60 days’ time. Zscaler ( ZS Quick Quote ZS - Free Report) shares are up 321.2% year to date. The Zacks Rank #2 company 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. Zscaler has a market cap of $26.29 billion. The consensus mark for fiscal 2021 earnings is pegged at 37 cents per share, having been raised 27.6% in the past 60 days. CrowdStrike Holdings ( CRWD Quick Quote CRWD - Free Report) shares have returned 308.5% on a year-to-date basis. The Zacks Rank #2 company is gaining from rising demand for cyber-security solutions owing to the slew of data breaches and increasing need for security and networking products amid the COVID-19 pandemic-led remote working trend. This $45.08-billion company’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps in adding users. The consensus mark for its 2020 bottom line is pegged at 22 cents per share, up a whopping 266.7% in the past 30 days. Pinterest ( PINS Quick Quote PINS - Free Report) shares are up 277.4% year to date. The social media provider is benefiting from user base expansion boosted by coronavirus-led lockdown. Availability of features like Today and Shop tab for Pinners has been the key catalysts. Moreover, enhanced product offerings, wider Pinner and advertiser base, and simplified ad systems through Verified Merchant Program and Pinterest Partners Program for small businesses are diving growth. This $43.49-billion company has a Zacks Rank #2, at present. The Zacks Consensus Estimate for its 2020 bottom line is pegged at 31 cents per share, up a whopping 343% in the past 60 days. Wayfair ( W Quick Quote W - Free Report) shares have returned 206.2% on a year-to-date basis. This $27.52-billion company’s growth has been driven by strengthening direct retail business across the United States and international regions. Additionally, an expanding active customer base has been a tailwind. Further, the company is aggressively investing in international regions in order to bolster footprint. The consensus mark for this Zacks Rank #2 company’s 2020 earnings is currently pegged at $4.74 per share, having moved 75.6% north in the past 60 days.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>