Nasdaq Exits Bear Market: 5 Top-Ranked Winners

On Feb 15, the Nasdaq posted an eight-week long winning stretch. In doing so, it exited its longest bear market by one measure since 1991. This represents a significant turnaround from the collapse that the index and tech stocks, in particular, suffered in the final quarter of 2018.

Clearly, tech stocks have found favor with investors once again this year. While tech earnings likely lost momentum in the fourth quarter, the FAANG group surprised investors with strong earnings numbers. This has led to their renewed popularity among investors and market watchers alike.

At this point, the Nasdaq is up 12.6% year to date. With even last year’s weakest performers staging a strong rebound, it would make good sense to add select index members to your portfolio to boost profits.

Tech Earnings Lose Pace, FAANG Numbers Impress

As the fourth-quarter earnings season progresses, it is clear that tech stocks have suffered a substantial loss of momentum. Tech sector earnings are on track to decelerate meaningfully in Q4, increasing only 7.6%, after back-to-back quarters of very strong growth.

However, when it comes to the muscular FAANG group, things are substantially different. Facebook (FB - Free Report), in particular, posted blowout earnings, sending its shares soaring at the end of January. Both Amazon (AMZN  - Free Report) and Alphabet (GOOGL - Free Report) also beat earnings estimates as did Netflix (NFLX - Free Report).

Only Apple (AAPL - Free Report) was a bit of a disappointment, but its shares notched gains despite the specter of falling iPhone sales. Both Microsoft (MSFT - Free Report) and IBM (IBM - Free Report) beat earnings estimates easily, indicating that the Nasdaq as a group is firmly back in favor.  

Shares of Facebook, Apple and Netflix are up 24%, 8%, and 33.3%, respectively, year to date. Both Alphabet and Amazon have gained 7.1% over the same period.

Success of Trade Negotiations Hold the Key for Nasdaq

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