We are approaching Q2 earnings season, and these seemingly stretched valuations in the tech sector will be put to the test. The equity market has run up quite a bit these past 4 months with tech leading the way. Adobe Systems Incorporated Price, Consensus and EPS SurpriseĪlibaba Group Holding Limited Price, Consensus and EPS SurpriseĪlibaba Group Holding Limited price-consensus-eps-surprise-chart | Alibaba Group Holding Limited Quote Expanding revenues by more than 20% while producing large growing profits is a feat that very few companies can claim. I expect this relative outperformance to continue as this trailblazing tech giant continues to expand.Īdobe’s subscription-based business model has allowed the company to grow its sales quarter-over-quarter for more than 5 years. These shares have outperformed the S&P 500 by almost 10-fold in the past 5 years. The enterprise was an early mover on cloud computing, which has propelled ADBE shares to continuously new highs. Adobe was able to transition its essential business software to a cloud-based offering successfully. ADBE’s sails have been filled with a pandemic-driven tailwind that has propelled the “stay-at-home” cloud market.Īdobe is a legacy software player that has been able to stay ahead of the innovative curve for decades. Price, Consensus and EPS SurpriseĪDBE, MSFT, and QQQ all tied for second on my March 19th watch list, with each of them appreciating roughly 57%. I’m not looking to add to my SPLK position until we see a pullback as the shares have risen to very frothy levels. Splunk’s market control of this niche segment makes the stock incredibly attractive. With the world moving towards full automation, managing, analyzing, and providing actionable outcomes on machine data is going to be a requirement for businesses to stay competitive. SPLK rallied over 90% since the article, with the markets pricing back in the necessity of this enterprise’s real-time data management. Splunk was my high-risk/high-reward play, and its performance has illustrated that with a soaring share price from the March bottom. As a whole, my picks (equal-weighted) outperformed the S&P 500 by 4 percentage points.īelow are the 5 outperformers from My Top 10 Watch List. My 10 picks were intended to provide investors with a wide range of high-quality stocks that would maintain liquidity amid the highly uncertain times and were poised to drive returns throughout the Roaring 20s. Innovation-driven growth stocks made up the largest portion of my gains since mid-March, as I sure you have experienced in your portfolios. Tech stocks have been the relative outperformers in the past few months, with the world experiencing 5 years of digitalization in 5 months. The market has rallied an incredible amount since mid-March, and hopefully, you were able to reap the same strong returns that I was the past 4 months. I want to look at how and why they performed the way they did. I wrote a piece near the bottom of the COVID-crisis on March 19th called My Top 10 Watch List, now I want to dissect my picks.
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