Over the past 12 months, the S&P 500 index has added about 15%. The contribution from the technology sector has made all the difference. Tech stocks have appreciated by nearly 48%, and the sector’s market cap as of Wednesday night’s close was just short of $12 trillion.
Among the tech stocks leading the way are two that have appreciated by more than 600% in the past year and two others that have appreciated by more than 300%. Six others have jumped by more than 200%.
One stock that is not included in the sector but is often treated like a tech stock is Tesla Inc. (NASDAQ: TSLA). The company’s shares have added more than 730% in the past 12 months, giving the electric car maker a market cap of more than $400 billion, some 40% of the $1.05 trillion market cap of the entire automaker group.
Here’s a look at the four tech stocks that have appreciated the most over the past 12 months.
Zoom Video Communications Inc. (NASDAQ: ZM) stock has added 680% since trading at around $62 a share at this time last year. The stock closed Wednesday at $513.19, well above its consensus price target of $429.27, implying a downside to the current price of more than 16%.
But rating actions last week are skeptical of that downside calculation. Of nine new calls last week, all nine raised their price targets and one (RBC) raised its rating from Positive to Outperform. The highest new price target was $611 at Berstein and the lowest was $450 at Rosenblatt.
Zoom is expected to post earnings per share of $2.49 this year and $2.85 in 2021. The stock trades at nearly 13% below its 52-week high and with a multiple of 180 times its expected 2021 earnings.
Fiverr International Ltd. (NYSE: FVRR) shares have added 678% since trading at around $21 a year ago. The stock closed Wednesday at $160.54, implying a downside of more than 15% to the consensus price target of $135.38.
The Israel-based company hasn’t attracted as much analyst attention as Zoom, with the most recent action being an initiation at Neutral with a price target of $118 in late August.
Fiverr is expected to post 2020 EPS of $0.23 and 2021 EPS of $0.64. Shares trade more than 13% below their 52-week high and at a multiple of 250 to expected 2021 earnings.
Sea Ltd. (NYSE: SE) has added more than 500% to its year-ago share price of around $27 to close at $168.38 on Wednesday. With a consensus price target of $174.77, the potential upside on the price is 3.8%.
Singapore-based Sea’s most recent analyst call came from UBS, which initiated coverage earlier this month with a Buy rating and a price target of $200.
Sea is expected to post a loss of $2.39 per share in 2020 and $1.29 per share in 2021. The stock trades at around 5% below its 52-week high.
DraftKings Inc. (NASDAQ: DKNG) has added more than 300% to its share price since trading at around $10 a share in October of last year. With a consensus price target of $57.32, the implied gain on the stock is 38%.
Since the beginning of October, four analyst firms have boosted price targets and three have initiated coverage with at least a Hold rating. The price targets from these seven firms range from $48 to $76 per share.
DraftKings is expected to report a net loss of $1.49 per share in 2020 and a loss of $0.99 per share in 2021. The stock currently trades at about 35% below its 52-week high.
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