The Nasdaq finished at a fresh record high on Jun 10, highlighting the rebound in technology-related stocks following the coronavirus rout that pushed the economy into deep recession. 

 

The tech-laden index dropped more than 20% on Mar 23 from its mid-February peak when the coronavirus-induced selling peaked. But since then, the index kept climbing upward as investors bet on financial aids from the government and the Fed to ride out the economic downturn.

 

The Nasdaq closed above the psychological milestone of 10,000 on Jun 10 in less than 50 years. And in the process, the index completed the V-bottom, which represents a sharp fall and then a quick recovery resembling a V on the chart.

 

 

 

(Source: Schaeffer’s Investment Research)

 

What’s more, the index registered its fastest 1,000-point jump, or 114 trading sessions, since the 49 trading sessions it took to soar from the 4,000 mark to 5,000 in the year 2000, according to Dow Jones Market Data.

 

And the largest tech names in terms of market capitalization have significantly contributed to Nasdaq’s rebound. Notable among them are Facebook, Apple, Amazon, Netflix and Google-parent Alphabet.

 

Facebook benefitted from increase in mobile ad revenues and growing adoption of Stories by advertisers across Instagram, while Apple gained from momentum in the Services business, strong adoption of Apple Pay and expanding Apple Music subscriber base.

 

Amazon, in the meantime, is no doubt making the most from its Prime program, and Netflix continues to dominate the streaming space on the back of heavy investments in the production and distribution of both localized and foreign-language content. At the same time, Alphabet's strengthening cloud unit is aiding substantial revenue growth.

 

Going back to 1971, when the tech-heavy index began operations, whenever the index hit an all-time high and then dropped a minimum of 10%, it most times reached a subsequent all-time high within a year. And it has occurred in 15 such times.

 

To top it, after such 15 times, the index has averaged a gain of more than 16% in the following six-month period, and a gain of more than 30% in the subsequent 12-month period, per Schaeffer’s Investment Research.

 

 

 

There may be hiccups in one or two trading sessions but traditionally the Nasdaq has given positive returns in the six- and 12-month period after the index had completed a V-bottom since 1971. This calls for investing in solid tech stocks listed in the index that can make the most of the projected upward trend. These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

 

AXT Inc (AXTI Quick QuoteAXTI - Free Report) researches, develops, and produces compound and single element semiconductor substrates. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has risen more than 100% over the past 60 days. The company’s expected earnings growth rate for the next quarter is 200%.

 

Amkor Technology, Inc. (AMKR Quick QuoteAMKR - Free Report) is one of the largest providers of semiconductor packaging and test services. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 7.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 25%.

 

NVIDIA Corporation (NVDA Quick QuoteNVDA - Free Report) is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has advanced 4.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 36.4%.

 

Everbridge, Inc. (EVBG Quick QuoteEVBG - Free Report) operates as a software company in the United States. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has soared 68.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 14.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Etsy, Inc. (ETSY Quick QuoteETSY - Free Report) offers e-commerce services. It provides online and offline marketplaces to buy and sell goods. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has climbed more than 100% over the past 60 days. The company’s expected earnings growth rate for the current year is 38.2%.

 

 

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

 

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.