Zoom Stock – 6 Top-Ranked Tech Stocks to Play Nasdaq‘s Upward Momentum
The Nasdaq composite closed at a record high of 14,174.14 on Jun 14, reflecting a 0.7% intraday gain and eclipsing its previous record closing of 14,138.78 on Apr 26. Overall, the index is up almost 10% year to date.
The pace is notable as tech-heavy Nasdaq has suffered from looming inflation threat in the United States. Higher inflation means increased borrowing costs as well as input costs. As majority of tech companies rely on borrowing to expand their businesses, a higher inflation rate is detrimental to their prospects.
Notably, per CNBC data, consumer prices in May increased 5%, fastest in almost 13 years. Moreover, according to a survey by Federal Reserve Bank of New York, Americans expect inflation rate to be up to 4% over the next 12 months.
Nevertheless, despite the inflation threat, the momentum in Nasdaq will continue, primarily fueled by changing consumer preference and behavior. Undoubtedly, tech stocks are benefiting from the ongoing digitalization. Adoption of cloud computing and the integration of AI and machine learning have been key catalysts.
Moreover, short supply of chips is opening up opportunities for semiconductor companies. Notably, the U.S. Senate has passed a bill that allocates $52 billion for the American semiconductor industry in an attempt to bolster chip manufacturing as well as improve competitive prowess against China.
Here we pick six Nasdaq-listed tech stocks that are well-poised to grow in 2021 driven by solid fundamentals. Moreover, they have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Per the Zacks proprietary methodology, stocks with such a perfect mix of elements offer solid investment opportunities.
Zoom ZM has benefited the most from the coronavirus-induced work-from-home and online-learning trend. The company is well-positioned to benefit from growing adoption of hybrid work environment driven by a plethora of solutions like Zoom Phone Appliances and Zoom Events.
This $107.96-billion company currently flaunts a Zacks Rank of 1 and a Growth Score of A. The Zacks Consensus Estimate for its fiscal 2022 earnings is pegged at $4.66 per share, having been raised 27% in the past 60 days.
Zoom Video Communications, Inc. price and Consensus
Zoom Video Communications, Inc. price-consensus-chart | Zoom Video Communications, Inc. Quote
Another Zacks Rank #1 stock, Digital Turbine APPS, is riding on accretive acquisitions like AdColony and Fyber as well as solid adoption of SingleTap. Moreover, strong international growth is a key catalyst. In the recently concluded fourth-quarter fiscal 2021, international revenue per devices (RPD) jumped more than 140% year over year.
Digital Turbine has a market cap of $6.90 billion and flaunts a Growth Score of A. The Zacks Consensus Estimate for its fiscal 2022 earnings is pegged at $1.56 per share, having been revised 42% upward in the past 60 days.
Digital Turbine, Inc. price and Consensus
Digital Turbine, Inc. price-consensus-chart | Digital Turbine, Inc. Quote
Apple AAPL is benefiting from strong demand for its 5G-enabled iphone-12 as well as iPad, Mac and wearables. The momentum in the Services segment has been a key catalyst. Moreover, this Zacks Rank #2 company recently unveiled a plethora of software, including iOS 15, iPadOS 15, macOS Monterey and watchOS 8.
The $2.13-trillion company has a Growth Score of B. The consensus mark for its fiscal 2021 earnings stands at $5.17 per share, having moved 15.1% north over the past 30 days.
Apple Inc. price and Consensus
Apple Inc. price and Consensus” src=”https://staticx-tuner.zacks.com/images/charts/f0/1623755144.png”/>
Alphabet GOOGL benefits from strong cloud demand as well as search dominance. Notably, this Zacks #2 Ranked company’s expanding data centers will continue to bolster its presence in the cloud space. Moreover, Google’s robust mobile search is gaining solid momentum. Alphabet’s focus on infusing AI and machine learning technology in its products is a key catalyst.
Alphabet has a Growth Score of B and market cap of $1.63 trillion. The Zacks Consensus Estimate for its 2021 earnings is pegged at $89.46 per share, having been revised 27.3% upward in the past 60 days.
Alphabet Inc. price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Intuit INTU is gaining from solid performance of its lending product, QuickBooks Capital. Moreover, strong momentum in online ecosystem revenues and solid professional tax revenues are enhancing this Zacks Rank #2 company’s prospects. The TurboTax Live offering is also driving the Consumer tax business.
This $129.02-billion company has a Growth Score of B. The consensus mark for its fiscal 2021 earnings has been revised upward by 12% to $9.35 per share in the past 60 days.
Intuit Inc. price and Consensus
Intuit Inc. price-consensus-chart | Intuit Inc. Quote
NVIDIA (NVDA) benefits from strong demand for GeForce desktop and notebook GPUs, which is boosting gaming revenues. Moreover, continuing Hyperscale demand remains a tailwind for the company’s datacenter business. This Zacks #2 Ranked stock, with a Growth Score of B, is expected to cash in on solid uptake of AI-supported smart cockpit infotainment solutions.
The Zacks Consensus Estimate for its 2021 earnings is pegged at $15.84 per share, having been revised 17.6% upward in the past 60 days. NVIDIA has a market cap of $444.21 billion.
NVIDIA Corporation price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.