Nasdaq Hits Record High on Tech Rally: 5 Solid Buys

It has been a great 2020 for the Nasdaq despite the coronavirus pandemic taking a toll on the markets. The Nasdaq Composite hit a record high on Jun 9, briefly crossing the 10,000 mark for the first time, with investors’ confidence getting a boost as the economy slowly started reopening.

The rally was driven by the technology sector that includes the top FAANG stocks, Microsoft Corporation MSFT and Tesla, Inc. TSLA. Although The Dow Jones Industrial Average fell 1.1% and S&P 500 declined 0.8%, the Nasdaq Composite was up 0.3% on Tuesday.

Although the tech-heavy Nasdaq failed to close above the 10,000 mark, it still finished at a new record high of 9,954. Tuesday’s rally came on the back of sharp gains a day earlier, with the S&P 500 returning to positive territory for 2020.

The sharp gains came even as the official economic arbiter in the United States declared that the economy had entered a recession earlier this year. The National Bureau of Economic Research determined that a “clear peak in monthly economic activity” occurred in February. Nasdaq has surged 11% so far this year.

Tuesday’s rally was lead by Amazon.com, Inc. AMZN, Apple, Inc. AAPL, Facebook, Inc. FB and Microsoft. Amazon and Apple gained 3% and 3.1%, respectively. Facebook’s shares jumped 3.1%, while Microsoft increased 0.8%. All the four stocks closed at new all-time highs. Google parent Alphabet, Inc. GOOGL is the only among the five largest tech stocks not to close at an all-time high. It’s still about 5% behind its all-time high of $1,524.87, where it closed on Feb 19.

After entering bear market in March, following the coronavirus outbreak, Wall Street has made a strong comeback in the past two months on unprecedented stimulus both from the Fed and the government. Now, with U.S. states easing lockdowns and other global economies reopening, there will be an uptick in activities, which should further boost investors’ confidence.

The market rally over the past two months has primarily been led by tech stocks. Big Tech stocks have performed far better than most as newly remote workers have come to rely more than ever on online services. The combined market value of the four companies — Facebook, Apple, Amazon and Microsoft — is now close to $5 trillion.

Much of credit for the bounce in the market goes to the tech companies. They have been leading from the front during the pandemic with their services, which have been helping people in leading their life from home.

eBay Inc. EBAY operates as an online shopping site that allows visitors to browse through available products listed for sale or auction through each company’s online storefront.” data-reactid=”31″ type=”text”>eBay Inc. EBAY operates as an online shopping site that allows visitors to browse through available products listed for sale or auction through each company’s online storefront.

The company’s expected earnings growth rate for the current year is 20.5%. The Zacks Consensus Estimate for current-year earnings has improved 12.9% over the past 60 days. eBay sports a Zacks Rank #1 and VGM Score of B.

The company’s expected earnings growth rate for the current year is 33%. The Zacks Consensus Estimate for current-year earnings has improved 13.1% over the past 60 days. Chegg sports a Zacks Rank #1 and has a VGM Score of B.

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 32.4% over the past 60 days. Box carries a Zacks Rank #2 and has a VGM Score of B.

The company’s expected earnings growth rate for the current year is 28.1%. The Zacks Consensus Estimate for current-year earnings has improved 12.9% over the past 60 days. GoDaddyhas a Zacks Rank #2 and a VGM Score of B.

The company’s expected earnings growth rate for the current year is 62.5%. The Zacks Consensus Estimate for current-year earnings has improved 32.7% over the past 60 days. ChannelAdvisorhas a Zacks Rank #1 and VGM Score of B.

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.

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Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
eBay Inc. (EBAY) : Free Stock Analysis Report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
Chegg, Inc. (CHGG) : Free Stock Analysis Report
 
Box, Inc. (BOX) : Free Stock Analysis Report
 
GoDaddy Inc. (GDDY) : Free Stock Analysis Report
 
ChannelAdvisor Corporation (ECOM) : Free Stock Analysis Report
 
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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

 

Microsoft Corporation (MSFT) : Free Stock Analysis Report

 

Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

 

Apple Inc. (AAPL) : Free Stock Analysis Report

 

eBay Inc. (EBAY) : Free Stock Analysis Report

 

Tesla, Inc. (TSLA) : Free Stock Analysis Report

 

Facebook, Inc. (FB) : Free Stock Analysis Report

 

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

 

Chegg, Inc. (CHGG) : Free Stock Analysis Report

 

Box, Inc. (BOX) : Free Stock Analysis Report

 

GoDaddy Inc. (GDDY) : Free Stock Analysis Report

 

ChannelAdvisor Corporation (ECOM) : Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

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