5 Top-Ranked Tech Stocks to Buy Ahead of Thanksgiving

The three major U.S. indices, namely, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq began the thanksgiving week on a bright note, courtesy encouraging vaccine data from AstraZeneca AZN and the University of Oxford.

The AstraZeneca-University of Oxford vaccine has shown 90% effectiveness. Notably, in late stage trials, vaccines developed by Pfizer and its German partner BioNTech have been found 95% effective, while Moderna’s shot is 94.5% effective. Meanwhile, Regeneron’s COVID-19 antibody treatment received emergency use authorization from the FDA.

The positive development on the vaccine front is great news for the United States, which has been seeing rising number of COVID-19 cases over the past few weeks. According to John Hopkins University data, more than 12 million people have been infected in the United States, with the death toll hitting 257,701 as of Nov 23.

Per a Reuters report, Dr. Moncef Slaoui, chief scientific adviser for “Operation Warp Speed,” now expects Americans to be in a position to receive COVID-19 vaccines sooner, as Pfizer- BioNTech vaccine can get the U.S. approval by Dec 11 or 12.

Stocks also got a boost after reports surfaced that President-elect Joe Biden plans to nominate Janet Yellen, former Federal Reserve Chair, as the next Treasury Secretary.

The Nasdaq composite increased 0.22% to close at 11,880.63 on Nov 23. Moreover, the Dow Jones Industrial gained 1.12% to close at 29,591.27, while the S&P 500 rose 0.56% to close at 3,577.59.

Tech’s Prospects Remain Bright

The momentum in tech stocks is expected to continue, primarily due to rapid adoption of cloud computing along with the ongoing infusion of AI and machine learning. Accelerated deployment of 5G technology, blockchain, IoT, autonomous vehicles, AR/VR and wearables is a major positive.

Although vaccine approvals might somewhat dent the prospects of tech stocks facilitating work-from-home and online learning over the long haul, we believe demand for web-based services like e-commerce, contactless payment and delivery will continue to remain robust.

Here we pick five tech stocks that apart from boasting strong fundamentals 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.

Notably, each of these stocks has outperformed the S&P 500 composite on a year-to-date basis and is up more than 50%.

Year-to-Date Performance

 

Top Bets

Generac Holdings GNRC sports a Zacks Rank #1 and a Growth Score of A.

This designer and manufacturer of power generation equipment, energy storage systems, and other power products is benefiting from solid demand for portable and home standby generators due to higher power outage events.

The company is working aggressively to increase production levels and plans to increase capacity early in the second half of 2021 to address growing demand for home standby generators.

The Zacks Consensus Estimate for Generac’s 2020 earnings stands at $6.19 per share, having moved 4.7% north over the past 30 days. For 2021, the consensus mark for earnings has moved up 7.3% to $7.24 per share over the same time frame.

MACOM Technology Solutions MTSI is striving to become the leading supplier of lightwave, RF, and high-speed analog solutions. The company’s near-term prospects are driven by strong backlog in Industrial/Defense segment, which is expected to fully offset the sequential decline in data center.

This Zacks Rank #1 company with a Growth Score A is expected to benefit from recovery in data center spending. MACOM is also set to launch new products related to 5G and data center lasers and silicon photonics that are expected to drive growth. Improving free cash flow generating ability is a key catalyst.

The Zacks Consensus Estimate for its fiscal 2021 earnings is pegged at $1.63 per share, having been revised 10.1% upward in the past 30 days. For fiscal 2022, the consensus mark for earnings has moved up 8.2% to $1.85 per share over the same time frame.

Shutterstock SSTK: This Rank #1 company’s expanding total addressable market is a key catalyst. Prospects are bright given increasing demand for images, video clips and music tracks from digital advertisers as well as small and medium businesses accessing the digital channel for growth. Moreover, solid streaming video adoption and growing demand for podcasts are tailwinds.

Shutterstock has a Growth Score of A. The consensus mark for its 2020 earnings is pegged at $2.28 per share, having moved 46.2% north in the past 30 days. For 2021, the consensus mark for earnings has surged 38% to $2.40 per share over the same time frame.

Brightcove BCOV is benefiting from increased video adoption across media and enterprise customers. The company’s over-the-top solution Beacon has witnessed significant adoption in recent quarters. This Zacks Rank #2 company has a Growth Score of A.

The consensus estimate for 2020 earnings is pegged at 29 cents per share, up a whopping 222.2% in the past 30 days. For 2021, the Zacks Consensus Estimate for earnings has risen 66.7% to 35 cents per share over the same time frame.

Digital Turbine APPS: This Zacks Rank #2 company is benefiting from robust demand for its cloud-based mobile software offerings as enterprises continued the shift from on-premise to cloud environments, especially amid the coronavirus lockdown.

Moreover, Digital Turbine’s diversified partner base, a large content business partner and rollouts with newer international partners are expected to drive the top line.

Digital Turbine has a Growth Score of A. The Zacks Consensus Estimate for its fiscal 2021 earnings has risen 32% to 62 cents per share in the past 30 days. Over the same time frame, the consensus mark for fiscal 2022 earnings has climbed 25% to 80 cents per share.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 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
 
AstraZeneca PLC (AZN): Free Stock Analysis Report
 
Brightcove Inc. (BCOV): Free Stock Analysis Report
 
Generac Holdings Inc. (GNRC): Free Stock Analysis Report
 
Shutterstock, Inc. (SSTK): Free Stock Analysis Report
 
MACOM Technology Solutions Holdings, Inc. (MTSI): Free Stock Analysis Report
 
Digital Turbine, Inc. (APPS): Free Stock Analysis Report
 
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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.

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