3 Technology Stocks That Made Financiers Billions in 2020

Dec 29, 2020 05:11 PM ET
  • When it concerns technology stocks, the names topping the efficiency list this year could stun you. Companies involved in apps and also solar power have actually been warming up portfolios the most.
3 Technology Stocks That Made Financiers Billions in 2020

Especially, Digital Turbine (NASDAQ: APPS), Enphase Energy (NASDAQ: ENPH), and also Daqo New Energy Corp (NYSE: DQ) have supercharged portfolios the most thus far in 2020. Still, these tech names experienced this development for various factors. Let's take a more detailed look at each supply to see whether that development can proceed.

Digital Turbine

Digital Turbine is a platform that assists application developers and also makers of cordless devices. It can help organizations produce and outline media material. The firm can also promote and aid business get their apps mounted on devices.

Up until now, more than 40 mobile operators and also OEMs have actually adopted the system. Over 3 billion application preloads have actually supplied tens of thousands of marketing campaign.

This helped to expand profits in the most up to date quarter by 116% from the year-ago level. Changed take-home pay tripled during the same period to a watered down EPS of $0.15. The firm anticipates incomes of $0.15 or $0.16 per watered down share in the present quarter.

Such development has actually posted enormous returns to capitalists' portfolios. Year to date, this supply has climbed by virtually 700%.

The forward price-to-earnings (P/E) proportion stands at about 64. Experts anticipate incomes growth will certainly slow down to 39% following year, yet a 5G upgrade cycle need to stimulate more mobile phone sales. In Addition, Digital Turbine develops its platform for cross-selling, implying it could gain added sales chances from present customers.

Enphase Energy

Enphase bills itself as the "world's leading provider of solar microinverters." Year to date, this power technology company has actually offered capitalists quite a fee as the stock has climbed by close to 600%. The firm experienced a revenue decline from year-ago levels in its newest quarter.

Nevertheless, given that GAAP gross margins boosted from 36% to 53% over the course of the year, Wall Street cheered, and also the price went higher. The company has actually since taken advantage of expert upgrades. Also, more just recently, it launched a certification system in Australia, which acts as a seal of approval defining a service technician's job as "Enphase approved." It has also incorporated itself much more closely with solar panel manufacturers.

Furthermore, it does not anticipate another earnings decrease. The company forecasts revenue will certainly be available in between $245 million as well as $260 million for the 4th quarter of 2020. This amounts to a year-over-year boost between 17% as well as 24%.

Analysts forecast that by the end of following year, revenues will certainly climb by 45%. This would most likely not stun any individual that adheres to the sector. Markets and Markets forecasts a compound annual development rate (CAGR) for the microinverter industry of 21% via 2025.

Still, the stock rate appears to show that development. At an onward P/E proportion of just over 100, the temporary growth trajectory for Enphase stock is uncertain.

However, Enphase ought to succeed long-term as the firm has actually placed itself to proceed leveraging its partnerships in this high-growth industry.

Daqo New Energy

Daqo manufactures high-purity polysilicon, a raw material vital for the solar industry, and supplies it mostly to domestic solar suppliers in China. China remains to radiate the light on solar as it has actually long remained the globe's biggest emitter of greenhouse gases. This helps to spur demand for renewables.

Daqo is far from the only polysilicon maker. According to Bernreuter Research, it is the sixth-largest worldwide. Nonetheless, it is the biggest to trade on a significant U.S. exchange.

The stock of the Shanghai-based firm has actually climbed by nearly 475% year to date. Throughout the 3rd quarter, the company completed a digital transformation project that allowed it to enhance manufacturing efficiency.

In its most recent conference call, CEO Longgen Zhang indicated manufacturing might reach approximately 20,000 metric lots (MT) of polysilicon. If that takes place, it would total up to a 9% increase over third-quarter production degrees. It would certainly also be a 23% increase from production degrees in Q4 of 2019.

In the latest quarter, revenue boosted by 50% from year-ago degrees. During the same quarter, profits of $0.35 per modified American depositary share surged 150% higher.

Additionally, in spite of that huge growth, the stock sells at an ahead P/E ratio of around 17, a relative deal taking into consideration the business's development.

In addition, throughout Q4, it continues to make added bargains. The company announced brand-new supply contracts with JA Solar and Trina Solar during the quarter.

Between its appraisal and expanding customer base, the solar energy business could heat up gains in 2021 and also past.

Solar Installers, Manufacturers