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5 Top-Ranked Stocks That Made Nasdaq Outperform in 1H

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The first half of 2020 has been highly volatile with the major bourses hitting new all-time highs while slipping into bear territory in just a month — the fastest-ever – on the COVID-19 pandemic. Notably, the tech-heavy Nasdaq Composite Index has outperformed so far this year, having gained 12% in comparison to losses of 3.5% for the S&P 500 and 8.8% for the Dow Jones.

Though the worst pandemic had halted business activities for nearly two months, impacting growth of each and every sector, it has given a strong boost to stay-at-home stocks. These stocks mostly belong to the technology sector, especially cloud computing, gaming and e-commerce as people opted to work and stay entertained at home. Investors have also largely piled up software shares which are apparently more insulated from the impacts of the virus.

Buoyed by this trend, many FANG stocks and their likes have hit new all-time highs. In fact, the combined market value of the big four companies - Facebook ), Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) and Microsoft (MSFT - Free Report) - is now close to $5 trillion. Consumer services’ stocks, the second-largest holding on the Nasdaq index, also moved up given the surge in online shopping due the forced closure of retail stores.

Now, with the easing of lockdown measures, economic activities have picked up, fueling demand for technology services. The latest bouts of data indicate that economic damage from the coronavirus pandemic was less severe than anticipated.

That said, many stocks on the Nasdaq index have been surging. Below we have highlighted those 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).

Novavax Inc. (NVAX - Free Report) – Up 1,557.04%

This Maryland-based specialty biopharmaceutical company is engaged in the research, development and commercialization of proprietary products focused on women's health and infectious diseases. The stock saw solid earnings estimate revision of $1.27 for this year over the past one month and has an estimated earnings growth rate of 89.7%. Novavax has a Zacks Rank #2 and Growth Score of B.

Zoom Video Communications Inc. (ZM - Free Report) – Up 269.3%

This California-based company provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East and Africa. The stock saw solid earnings estimate revision of 75 cents over the past month and has an estimated growth rate of 237.1%. The stock has a Zacks Rank #1 and Growth Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kopin Corporation (KOPN - Free Report) – Up 246.5%

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 witnessed no earnings estimate revision for this year in a month and has an expected earnings growth rate of 54%. It has a Zacks Rank #2 and Growth Score of A.

Livongo Health Inc. – Up 199%

This California-based company provides an integrated suite of solutions for the healthcare industry in North America. The stock witnessed no earnings estimate revision for this year in a month and has an expected earnings growth rate of 69.2%. It has a Zacks Rank #2 and Growth Score of C.

Quidel Corporation (QDEL - Free Report) – Up 179.7%

This California-based company discovers, develops, manufactures and markets point-of-care, rapid diagnostic tests for detection of medical conditions and illnesses. The stock saw solid earnings estimate revision of $1.19 for this year over the past one month and has an estimated earnings growth rate of 171%. Quidel has a Zacks Rank #1 and Growth Score of B.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking. Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

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