5 Top-Ranked Nasdaq Tech Stocks to Buy for 2H20

The Nasdaq composite has been outperforming the Dow Jones Industrial and the S&P 500 to date, driven by momentum in technology stocks that have shown great resiliency amid the coronavirus pandemic.

The tech-laden index is up 8.7% year to date despite the sell-off in the week ending Jun 26. Markedly, the index is up 47.1% since its Mar 23 lows.

The momentum in Nasdaq is expected to continue, primarily fueled by changing consumer preference and behavior. Stay-at-home is now the new normal as we are learning to live with the virus for a significant stretch. This is expected to boost web-based services like e-commerce, contactless payment and delivery.

Moreover, the work-from-home and online learning wave is anticipated to keep demand for remote-working tech, cloud services and cybersecurity solutions high.

Additionally, rapid adoption of cloud computing along with the infusion of AI and machine learning as well as the accelerated deployment of 5G technology, autonomous vehicles, AR/VR and wearables are major positives.

Further, demand for coronavirus testing solutions is expected to remain high until the availability of an effective vaccine.

Here we discuss five Nasdaq-listed stocks that have solid fundamentals and are well-poised for further growth in the rest of 2020

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.

Notably, each of these stocks has a market cap of more than $10 billion and has outperformed the S&P 500 composite on a year-to-date basis.

Year-to-Date Performance

Top Picks

Zoom Video Communications ZM is riding on the coronavirus-induced work-from-home and online-learning trend. Moreover, this $72.44-billion company’s efforts to eliminate the security and privacy loopholes like “zoombombing” are expected to help maintain its existing enterprise user base as well as attract more customers.

Zoom Video currently flaunts a Zacks Rank of 1 and a Growth Score of A. The Zacks Consensus Estimate for its fiscal 2021 earnings is pegged at $1.18 per share, having been raised 174.4% in the past 60 days.

Fortinet FTNT is benefiting from dominance in the Unified Threat Management (UTM) space, which is one of the fastest-evolving segments in the network security space. Moreover, this Zacks Rank #1 company is gaining from rising cyber-attack risks that are propelling demand for its FortiMail platform.

Fortinet has a Growth Score of B. The consensus mark for this $21.75-billion company’s 2020 earnings stands at $2.81 per share, having moved 1.4% north over the past 30 days.

Zscaler ZS benefits from steady rise in demand for cloud security as the work-from-anywhere trend gains momentum. Notably, this Zacks #1 Ranked company’s unique offerings include four architectural advantages that firewalls cannot add. These include Edge cloud for policy enforcement, multi-tenancy, proxy for SSL or TLS inspection and zero trust network access.

Zscaler carries a Growth Score of B and has a market cap of $13.71. The Zacks Consensus Estimate for its 2020 earnings is pegged at 21 cents per share, having been revised 5% upward in the past 30 days.

Okta OKTA is benefiting from robust demand for identity management services globally, triggered by the work-from-home wave. Notably, Okta Identity Cloud platform offers a suite of applications that manage and secure identities. The company has a market cap of $25.36 billion.

Okta currently carries a Zacks Rank #2 and a Growth Score of A. The Zacks Consensus Estimate for fiscal 2021 is pegged at a loss of 19 cents per share, having narrowed from a loss of 35 cents in the past 30 days.

Snap SNAP is benefiting from a spike in usage of Snapchat. Strong adoption of Augmented Reality Lenses, Discover content and Shows is driving user growth. Notably, this Zacks #2 Ranked company’s growing popularity, particularly among the 13-34-year-old demography, is expanding its advertiser base, thereby strengthening its competitive position.

Snap carries a Growth Score of A and has a market cap of $32.76 billion. The Zacks Consensus Estimate for 2020 is pegged at a loss of 22 cents per share, having narrowed from a loss of 23 cents in the past 30 days.



Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Fortinet, Inc. (FTNT) : Free Stock Analysis Report
 
Snap Inc. (SNAP) : Free Stock Analysis Report
 
Okta, Inc. (OKTA) : Free Stock Analysis Report
 
Zscaler, Inc. (ZS) : Free Stock Analysis Report
 
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research