TipRanks

Notifications

The 5 Best-Performing Tech Stocks of A 10-Yr Bull Run

Despite some tough moments in 2018, the bull market is now 10 years old. Welcome to the longest bull run in history. The S&P 500 has more than quadrupled from its devil’s bottom of 666 in March 2009.

And a big part of the market’s rally is down to a stellar performance by fast-growing tech companies. Here are the 5 tech stocks that recorded some of the most exceptional gains during this time. Some of these names may surprise you.

Congratulations to the savvy investors who are already invested in these stocks. But for those investors who haven’t bought into these stocks, is it too late to invest now? Here we delve into whether top analysts see further growth potential ahead for some of the market’s strongest outperformers. Let’s take a closer look now:

Netflix (NFLX– Research Report

Over the last 10 years, Netflix has posted almost unbelievable gains. From March 2009 to March 2019, you could have made a whopping 6,493% return on Netflix stock! For those who weren’t quite so lucky, does the online streaming giant still represent an attractive investing proposition?

Well, the overall analyst consensus is currently a relatively optimistic Moderate Buy. That’s with a price target of just $402 (15% upside potential). But something interesting happens if we only look at the ratings of top-performing analysts. The consensus shifts to Strong Buy and the price target rises to $420 (20% upside potential).

“Netflix offers a truly compelling value proposition with global appeal. So compelling that Netflix is embarking on what is likely to be its 4th successful price increase in the last five years” writes RBC Capital’s Mark Mahaney (Track Record & Ratings).

He reiterated his NFLX buy rating in the wake of strong Q4 results. That’s with a price target ramp from $450 to $480 (37% upside potential). However it’s worth noting that Buckingham’s Matthew Harrigan (Track Record & Ratings) has just downgraded the stock citing 1) vulnerability to a general market pullback and 2) increased competition from rivals like Disney.

View NFLX Price Target & Analyst Ratings Detail

Amazon  (AMZN– Research Report

The second best-performing tech stock of the decade is Amazon. Compared to Netflix, its gains seem like drop in the ocean, but we are still talking about an impressive 2,605% rally.

Notably, analysts are still almost unanimously bullish on Amazon’s outlook. Out of 37 analysts covering the stock, only KeyBanc’s Edward Yruma is staying on the sidelines. Meanwhile the $2,116 price target still indicates over 30% upside potential from current levels.

Top Morgan Stanley analyst Brian Nowak (Track Record & Ratings) has just reiterated his buy rating and $2,200 price target (36% upside potential). Delving into reports of Amazon’s new grocery store offering, the analyst notes that these stores will offer a wider variety of cheaper products that could even extend into the health and beauty market.

As CNN highlights, more brick and mortar locations “will also give the company more pickup and delivery points to meet customer demand, help it gain data about shoppers, and introduce its expanded lineup of food and personal care brands, according to analysts.”

View AMZN Price Target & Analyst Ratings Detail

Expedia (EXPE– Research Report

Coming in at third place, we have Expedia. If you bought this leading online travel agency back in 2009 you would now be looking at gains of 2,170%! And still today the stock scores a Strong Buy consensus from the Street. Its $154 average analyst price target also suggests 27% upside potential lies ahead.

Most recently, we have an upgrade from Argus analyst John Staszak (Track Record & Ratings). As well as shifting his rating from hold to buy, Staszak raised his FY19 EPS view to $6.90 from $6.10. That’s thanks to the following: 1) “strong” Q4 results 2) anticipated 10%-15% adjusted EBITDA growth in 2019 3) continued international expansion and 4) an attractive valuation.

Indeed, Expedia is trading right now at 17.9-times his expected forward earnings. This comes in at the low end of its 17- to 36-times 5-year historical range.

“Favorable outlook implies normalization of sales-forces investments, higher Trivago profitability, and continuing marketing optimization, that is offsetting Cloud and HomeAway investments” comments Oppenheimer’s Jed Kelly.

View EXPE Price Target & Analyst Ratings Detail

Seagate Technology  (STX– Research Report

And now for the odd one out. Seagate is a provider of hard disk drives (HDD), used to store electronic data in data centers, computers, and consumer electronics.

Even though prices surged 2,103% over the last ten years, its bull run seems more precarious going forward. Shares are down 22% on a one-year basis- despite a 20% gain year-to-date.

More troubling, is that this comes with a Hold consensus from the Street and a $43.56 average analyst price target. Given that the stock is currently trading at $46.22, this suggests prices could drop back 6%.

In short, Seagate faces a difficult set of HDD end markets, most with significant secular headwinds. Bear in mind, HDDs still represent over 90% of the company’s overall revenue.

“Despite scaling back its cost base, we believe that the company’s exposure to magnetic drives will continue to stunt earnings growth” states five-star BMO Capital analyst Tim Long (Track Record & Ratings).

View STX Price Target & Analyst Ratings Detail

Salesforce  (CRM– Research Report

With a 1,986% 10-year rally, Salesforce is the fifth biggest tech gainer. And according to the Street, there are plenty of gains still to come. Out of 31 analysts, 30 are bullish on this ‘Strong Buy’ stock.

“We continue to view CRM as a top large-cap idea of CY19. Nudge target to $183 from $182” wrote RBC Capital’s Ross MacMillan (Track Record & Ratings) on March 4. “In the week that Salesforce turns 20, F4Q19 results confirmed our view that the company is driving consistent ~20% growth at scale” the analyst continued.

Indeed, results beat across the board, leading Oppenheimer’s Brian Schwartz (Track Record & Ratings) to chime in: “We believe salesforce.com is executing very well and see the F4Q business metrics combined with a higher FY2020 revenue outlook lending good support to our thesis that CRM can continue producing steady share gains, durable growth, and increasing cash flow, even in a slowing economy.”

View CRM Price Target & Analyst Ratings Detail

Enjoy the Research Report on the Stocks in this Article:

Amazon.com, Inc. (AMZN) Research Report

Expedia Group Inc (EXPE) Research Report

Netflix, Inc. (NFLX) Research Report

Salesforce.com, Inc. (CRM) Research Report

Seagate Technology PLC (STX) Research Report

The TipRanks database covers thousands of stocks. We monitor all the latest market activity so that investors can make better, data-driven investing decisions. That includes pulling together all the best-rated stocks with a ‘Strong Buy’ consensus rating from the Street’s top analysts. Discover the Street’s Best-Rated Trending Stocks Now

Harriet Lefton
Harriet Lefton, originally from the UK, began her career as a journalist specialising in the niche world of metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer. Now she has turned her attention to the world of financial blogging, covering US stocks, analysts and all manner of things finance-related.

Leave a Reply

Leave a Reply