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5 Technology Stocks That Have Crushed Nasdaq in 2019

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The tech-laden Nasdaq Composite (IXIC) has been one of the top-performing indices in 2019, with more than 32% return as of Dec 16.

Robust adoption of cloud computing solutions amid ongoing digital transformation of enterprises, driven by growing infusion of AI and ML technologies, has been driving the technology stocks.

Further, continuous innovation in electronic devices and major breakthrough developments has led to solid adoption of wearables and smart-connectivity solutions, including smart speakers and virtual reality/ augmented reality (VR/AR) devices.

Additionally, technical advancement in the telecommunication sector on accelerated deployment of 5G technology and strong efforts toward modification in Internet infrastructure are acting as tailwinds.

Tech Stocks Beating Trade War Woes

Markedly, Select Sector SPDR Technology ETF (XLK) has gained 47.1% year to date, compared with the S&P 500 composite’s rally of 28.7%.

Despite the heightening uncertainty owing to recession rumors, the U.S.-China trade war, and Brexit-related volatility, the aforesaid factors present significant opportunities for technology investors in 2020.

In fact, PC shipments have improved in the second and the third quarter in 2019. Notably, semiconductor sales have improved sequentially in August, September and October, indicating a recovery in the chip market.

Notably, the technology sector is expected to commence 2020 on an encouraging note following the talks regarding the U.S.-China phase one trade agreement easing trade war tensions.

Winning Criteria

Here we pick five technology stocks that have outperformed Nasdaq on a year-to-date basis.

Year-to-date Price Performance



Apart from having strong fundamentals, these stocks either flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

To further narrow down the list, we have selected those that have a VGM Score of A or B.

Per the Zacks’ proprietary methodology, stocks with this favorable combination offer good investment opportunities.

Our Picks

Tempe, AZ-based Amkor Technology (AMKR - Free Report) is one of the largest providers of semiconductor packaging and test services.

  • Zacks Rank #1
     
  • VGM Score of B
     
  • Market cap of $3.07 billion
     
  • The Zacks Consensus Estimate for 2019 earnings stayed at 40 cents per share over the past 30 days.


Neenah, WI-based Plexus (PLXS - Free Report) is a leading provider of electronic contract manufacturing services.

  • Zacks Rank #1
     
  • VGM Score of B
     
  • Market cap of $2.30 billion
     
  • The Zacks Consensus Estimate for fiscal 2020 earnings stayed at $4.09 per share over the past 30 days.


San Jose, CA-based Synaptics (SYNA - Free Report) designs and markets human interface solutions, such as touchpads for notebook computers, capacitive touch screen controllers for handsets and biometric fingerprint sensors for mobile devices.

  • Zacks Rank #1
     
  • VGM Score of B
     
  • Market cap of $2.14 billion
     
  • The Zacks Consensus Estimate for fiscal 2020 earnings stayed at $4.04 per share over the past 30 days.


Windsor, CT-based SS&C Technologies Holdings (SSNC - Free Report) offers software services primarily involving healthcare solutions and financial management services.

  • Zacks Rank #2
     
  • VGM Score of A
     
  • Market cap of $14.92 billion
     
  • The Zacks Consensus Estimate for 2019 earnings stayed at $3.71 per share over the past 30 days.


Olathe, KS-based NIC provides digital government services aimed at enabling governments to leverage the Internet in order to reduce costs and offer advanced services to businesses and citizens.

  • Zacks Rank #2
     
  • VGM Score of B
     
  • Market cap of $1.46 billion
     
  • The Zacks Consensus Estimate for 2019 earnings stayed at 75 cents per share over the past 30 days.


Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2020?

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 >>

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