The technology sector is booming and at the center of the current market rally. It has shown strong resilience in one of the worst economic environments the United States has ever seen.
Most of the strength is being driven by the biggest names in the sector like Facebook FB, Apple AAPL, Amazon AMZN and Microsoft MSFT courtesy of a purely digital shift in consumer habits to work or entertainment or shopping from home. In fact, the combined market value of the four companies is now close to $5 trillion, with Apple claiming the top spot at nearly $1.5 trillion. Only Facebook out of the four has a market cap of below $1 trillion.
These big tech stocks helped the broader stock market buoy up. The tech-heavy Nasdaq Composite Index crossed the 10,000 milestone for the first time in the last trading session. Hopes of strong sales and earnings growth led investors flocking to this sector.
Further, technology has a solid Zacks Sector Rank, being in the top 32%, suggesting continued outperformance in the coming months. The long-term outlook for the sector remains strong given the rapid emergence of cutting-edge technology, including cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence (AI), machine learning and 5G technology.
That said, investors might want to tap the space with the top-performing tech stocks of this year. For them, we have presented the ones that have a Zacks Rank #1 (Strong Buy) or 2 (Buy), a Growth Score of A or B, and a top-ranked Zacks industry. Also, we have provided price charts YTD and compared them with the respective Zacks industries.
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Zoom Video Communications Inc. ZM: Up 201.9%
This California-based company provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East and Africa. With a market cap of $58.5 billion, the stock has expected earnings growth of 237.1% for fiscal year (ending Jan 2021). It has a Zacks Rank #1 and Growth Score of B.
Inuvo Inc INUV: Up 133.3%
This Arkansas-based is an Internet marketing and technology company that delivers purchase-ready customers to advertisers through a broad network of websites and applications reaching both desktop and mobile devices. Its estimated earnings growth for this year is 18.7%. Inuvo has a market cap of $40.7 million. The stock has a Zacks Rank #2 and Growth Score of A.
Calix Inc CALX – Up 76.8%
This California-based company is a global leader in access innovation. With a market cap of $809.7 million, the stock has expected earnings growth of 266.7% for this year. It has a Zacks Rank #1 and Growth Score of A.
Okta Inc. OKTA – Up 56.1%
This United States-based company provides identity management platforms for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. It has estimated earnings growth of 38.71% for fiscal year (ending Jan 2021) and a market cap of $23.1 billion. The stock has a Zacks Rank #2 and Growth Score of A.
Inphi Corporation IPHI – Up 52.4%
With a market cap of $5.3 billion, California-based Inphi operates as a provider of fabless high-speed analog semiconductor solutions for the communications and computing markets. The stock has estimated earnings growth of 65.8% for this year. It has a Zacks Rank #2 and Growth Score of A.
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