15 stock-market winners that index-fund investors missed in 2020

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15 stock-market winners that index-fund investors missed in 2020


The COVID-19 economy has been brutal for millions of people who have been directly affected, through illness and loss of family members and friends, but also though lost jobs, destroyed businesses and disrupted careers. The stock market has been a different story: Unprecedented stimulus efforts of the federal government and Federal Reserve have sent it soaring.

Some of the best-known stock-market winners of 2020 are companies with innovative technology and services that businesses and consumers have relied on for remote access. Yet many aren’t yet included in the S&P 500 Index
US:SPX,
the part of the market tracked by most of the money invested in low-cost index funds, including the SPDR S&P 500 ETF
US:SPY.
Others, while part of the Nasdaq Composite Index
US:COMP,
aren’t yet included in the Nasdaq-100 Index
US:NDX,
which is tracked by the Invesco QQQ Trust ETF
US:QQQ
 

SPY has risen 18% while QQQ has surged an impressive 48%, both through Dec. 28.

This list doesn’t include Tesla Inc.
US:TSLA,
which was added to the S&P 500 on Dec. 21; the electric car maker’s shares had soared 731% by then.

Click here for more about Tesla and lists of the best-performing stocks of 2020 from among the S&P 500, Dow Jones Industrial Average
US:DJIA
 and Nasdaq-100 Index
US:NDX.

Here are 15 stocks that have soared this year but aren’t included in the broad S&P indexes or the Nasdaq-100:

Company

Ticker

 Industry 

Price change – 2020

Market capitalization ($mil)

 Cloudflare Inc. Class A 

US:NET  Information Technology Services 

398%

19,878

 CrowdStrike Holdings Inc. Class A 

US:CRWD  Packaged Software 

343%

41,632

 Zscaler Inc. 

US:ZS
 

 Software 

341%

27,546

 Pinterest Inc. Class A 

US:PINS  Internet Software/Services 

281%

36,291

 Twilio Inc. Class A 

US:TWLO  Software 

269%

50,898

 Square Inc. Class A 

US:SQ  Information Technology Services 

265%

87,615

 Trade Desk Inc. Class A 

US:TTD  Advertising/Marketing Services 

259%

39,087

 Zillow Group Inc. Class C 

US:Z  Information Technology Services 

202%

22,999

 Carvana Co. Class A 

US:CVNA  Specialty Stores 

198%

19,389

 Wayfair Inc. Class A 

US:W  Internet Retail 

180%

18,408

 Roku Inc. Class A 

US:ROKU  Electronics/Appliances 

167%

38,907

 Teladoc Health Inc. 

US:TDOC  Hospital/Nursing Management 

148%

30,145

 RingCentral Inc. Class A 

US:RNG  Software 

136%

31,613

 Spotify Technology SA 

US:SPOT  Internet Software/Services 

120%

61,422

 Veeva Systems Inc. Class A 

US:VEEV  Software 

104%

39,218

Source: FactSet

Scroll the table to see all the data.

You can click on the tickers for more about each company, including profiles, news coverage, price ratios and charts.

Here’s a summary of Wall Street analysts’ opinions about these stocks after such remarkable gains:

Company

Ticker

Share ‘buy’ ratings

Share neutral ratings

Share ‘sell’ ratings

Closing Price

Consensus price target

Implied 12-month upside potential

 Cloudflare Inc. Class A 

US:NET 81%

19%

0%

$84.98

$72.60

-15%

 CrowdStrike Holdings Inc. Class A 

US:CRWD 75%

20%

5%

$221.12

$188.26

-15%

 Zscaler Inc. 

US:ZS 52%

44%

4%

$205.27

$187.55

-9%

 Pinterest Inc. Class A 

US:PINS 64%

32%

4%

$71.04

$69.46

-2%

 Twilio Inc. Class A 

US:TWLO 78%

15%

7%

$362.88

$366.70

1%

 Square Inc. Class A 

US:SQ 57%

34%

9%

$228.28

$217.66

-5%

 Trade Desk Inc. Class A 

US:TTD 42%

53%

5%

$931.77

$751.44

-19%

 Zillow Group Inc. Class C 

US:Z 48%

39%

13%

$138.64

$130.20

-6%

 Carvana Co. Class A 

US:CVNA 62%

38%

0%

$274.71

$241.95

-12%

 Wayfair Inc. Class A 

US:W 45%

39%

16%

$252.82

$304.08

20%

 Roku Inc. Class A 

US:ROKU 59%

33%

8%

$356.99

$275.67

-23%

 Teladoc Health Inc. 

US:TDOC 60%

40%

0%

$207.95

$242.78

17%

 RingCentral Inc. Class A 

US:RNG 96%

0%

4%

$398.51

$364.13

-9%

 Spotify Technology SA 

US:SPOT 47%

33%

20%

$328.39

$285.78

-13%

 Veeva Systems Inc. Class A 

US:VEEV 65%

26%

9%

$287.58

$308.43

7%

Source: FactSet

Analysts have majority “buy” or equivalent ratings on 11 of these 15 stocks; however, most of the stock have gotten ahead of the consensus price targets. These price targets are usually for 12 months, so it is clear the analysts are confident for many as longer-term plays, despite valuations that appear lofty for the short term.

Don’t miss:20 of analysts’ favorite large-cap stocks for 2021, including GM, Facebook and Salesforce



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