These are the hottest Nasdaq stocks of the summer. Where analysts see them going next
It has been a hot summer, but that doesn’t mean technology has melted. The tech-heavy Nasdaq Composite has climbed about 4% since Memorial Day. That’s added to the index’s 2023 rebound, with the price up nearly 29% year to date. Part of that ascent can be tied to a group of outperformers. It’s a crop that includes some of the most-favored technology names and lesser-known companies in industries such as telecommunications and industrials. CNBC Pro screened for the top 10 stocks in the Nasdaq when looking between Memorial Day and Monday’s close. All data is from FactSet. Freight stock Old Dominion was the best performer in the index over this period with a gain of 27.6%. The company has been vying for the terminals of shuttered trucking company Yellow. But Wall Street sees a relatively modest gain of just over 2% in the next year after the recent rally, according to FactSet. And just one out of every four analysts hold buy ratings on the stock. Barclays analyst Brandon Oglenski initiated coverage of the stock at overweight last month. “We expect Old Dominion to continue gaining share over the next cycle, but with competition improving service, we expect volume outperformance to be a bit less than in years past,” he said in a note to clients. The company has also become one of the more expensive less than truck load, or LTL, carriers for shippers to utilize, suggesting marginal pressure to price ahead of the broader industry. We believe ODFL is deserving of its premium valuation and generally see shares as fairly valued.” Energy stock Baker Hughes came more near the middle of the top-performing pack with a 25.7% jump. About seven out of every 10 analysts have a buy rating, per FactSet. The average price target implies shares could climb nearly 14% higher over the next year. Baker Hughes beat expectations for its second quarter on both lines when reporting last month. The company also raised its quarterly dividend by 1 cent to 20 cents. Major tech names Nvidia and Tesla claimed the sixth and 10th spots, respectively. The former, which has seen huge gains this year as an artificial intelligence darling, has gained 20.6% since Memorial Day. More than seven out of 10 analysts rate the stock a buy, with an average upside implying another 14.5% could be ahead. Nvidia reports quarterly earnings Wednesday after the bell. Electric vehicle maker Tesla has gained almost 20% in the period. About three out of 10 analysts hold buy ratings, with an average price target signaling an upside of nearly 10% over the next year. Shares have climbed more than 10% this week, regaining ground after tumbling more than 11% last week following news of more price cuts in China. — CNBC’s Fred Imbert and Michael Bloom contributed to this report
