5 Tech Stocks That Doubled in 2016 and Still Have Potential

These tech stars have more room to run in 2017

After a highly volatile first half, the stock market is poised to end 2016 on a solid note. A rebounding U.S. economy as evident from the recently released improved economic data for GDP, and a favorable Consumer Confidence Index, unemployment rate and factory activity data have all contributed to the recovery.

2016 Market Performance

In the year-to-date (YTD) period, Dow Jones Industrial Average (DJI), NASDAQ Composite (IXIC) and S&P 500 (GSPC) gained 13.8%, 8.6% and 10.1%, respectively.

The technology sector continued to perform well with Technology SPDR ETF (XLK) registering a year-to-date return of 13.7%.

Launched in Dec 1998, XLK is a passively managed fund designed to deliver the returns of the U.S. technology stocks. The fund, before expenses, is expected to remain on par with the returns and characteristics of the S&P Technology Select Sector Index.

Tech Stocks Poised for Further Growth

The technology sector is likely to grow further in 2017, as evident from the recent forecast provided by Gartner Inc (IT) on worldwide IT spending. The latest report from the independent research firm projects global IT spending to reach $3.5 trillion next year, representing an increase of 2.9% from $3.4 trillion anticipated in 2016.

The technology space continues to be investors’ favorite due to its dynamic nature. It is expected to grow faster than ever before as evident from Gartner’s latest forecasts as well as improving U.S. economic data. Therefore, if you invest right, you can reap the benefits over time.

Right now, the technology sector has several promising stocks to choose from. Here we have picked five tech stocks that have more than doubled so far this year and have the potential to keep the momentum going in the next year.

They also have a favorable Zacks Rank #1 (Strong Buy) or #2 (Buy), a VGM Style Score of “A” or “B”, and high earnings growth rate projections than the industry average.

Tech Stocks That Doubled in 2016 and Still Have Potential: Alpha and Omega Semiconductor Ltd (AOSL)

Alpha and Omega Semiconductor Ltd (AOSL) is engaged in designing, developing and supplying a broad range of power semiconductors globally, including a portfolio of Power MOSFET and Power IC products. The company has a VGM Style Score of “A”.

Moreover, Alpha and Omega Semiconductor’s earnings growth rate projections for fiscal 2017 and 2018 are much higher than the Zacks categorized Computer and Technology sector’s average estimated growth rates.

Year-to-date, the company has gained 138.6% compared with the Zacks categorized Computer and Technology’s average return of 9.8% over the same time frame.

The stock carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tech Stocks That Doubled in 2016 and Still Have Potential: Coherent, Inc. (COHR)

Coherent, Inc. (COHR) designs, manufactures, and supplies electro-optical systems and medical instruments utilizing laser, precision optic and microelectronic technologies. The stock carries a Zacks Rank #1 and has a VGM Style Score of “B”.

Moreover, Coherent’s earnings growth rate projection for fiscal 2017 is much higher than Zacks categorized Computer and Technology sector’s average estimated growth rate.

Year-to-date, the company has gained 108.9%.

Tech Stocks That Doubled in 2016 and Still Have Potential: Finisar Corporation (FNSR)

Finisar Corporation (FNSR) is a provider of fiber optic subsystems and network test and monitoring systems, which enable high-speed data communications over local area networks or LANs, storage area networks or SANs, and metropolitan access networks or MANs.

The stock carries a Zacks Rank #1 and has a VGM Style Score of “A”. Moreover, Finisar’s earnings growth rate projections for fiscal 2017 and 2018 are much higher than the Zacks categorized Computer and Technology sector’s average estimated growth rates.

Year-to-date, the company has gained 109.1%.

Tech Stocks That Doubled in 2016 and Still Have Potential: KEMET Corporation (KEM)

KEMET Corporation (KEM) along with its subsidiaries is the world’s largest manufacturer of solid tantalum capacitors and one of the world’s largest manufacturers of multilayer ceramic capacitors. The stock carries a Zacks Rank #1 and has a VGM Style Score of “A”.

Moreover, KEMET’s earnings growth rate projections for fiscal 2017 and 2018 are much higher than the Zacks categorized Computer and Technology sector’s average estimated growth rates.

Year-to-date, the company has gained 184.9%.

Tech Stocks That Doubled in 2016 and Still Have Potential: TTM Technologies, Inc. (TTMI)

TTM Technologies Inc. (TTMI) provides time-critical, one-stop manufacturing services for highly complex printed circuit boards. Its printed circuit boards serve as the foundation of electronic products such as routers, switches, computer memory modules and communications infrastructure equipment. The stock carries a Zacks Rank #2 and has a VGM Style Score of “A”.

Moreover, TTM’s earnings growth rate projection for fiscal 2017 is much higher than the Zacks categorized Computer and Technology sector’s average estimated growth rate.

Year-to-date, the company has gained 112.6%.

Technology companies will continue to transform our world with each passing year. So, if you don’t want to be left behind, make sure you’re investing in quality tech stocks.

Where Do Zacks’ Investment Ideas Come From?

You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 “”Strong Buy”” stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 “”Strong Sells”” and other private research. See the stocks free >>

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GARTNER INC -A (IT): Free Stock Analysis Report

ALPHA&OMEGA SEM (AOSL): Free Stock Analysis Report

TTM TECHNOLOGIE (TTMI): Free Stock Analysis Report

KEMET CORP (KEM): Free Stock Analysis Report

FINISAR CORP (FNSR): Free Stock Analysis Report

COHERENT INC (COHR): Free Stock Analysis Report

SPDR-TECH SELS (XLK): ETF Research Reports

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