Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

What are we looking for?

The U.S. earnings season has passed the halfway mark with 63 out of 100 companies in the Nasdaq-100 Index reporting quarterly earnings. The Nasdaq-100 contains the largest and most actively traded U.S companies listed on the Nasdaq Stock Market. The average earnings beat, based on all companies that have reported, has been 21 per cent above estimates – quite remarkable amid a global coronavirus pandemic.

This week, we will be using Trading Central’s Strategy Builder to search for stocks inside the Nasdaq-100 that are showing positive revenue growth and upside price momentum.

We begin by setting a minimum market capitalization threshold of US$10-billion. We wish to focus on large-cap names in the market because of the greater stability and safety they offer.

Story continues below advertisement

Next, we will filter for stocks that have had at least a 20-per-cent price return over the past 52 weeks, and 5 per cent over the past four weeks, to identify stocks that are showing bullish price momentum.

Finally, we want tech stocks that are indicating positive revenue growth of at least 20 per cent in the most recent quarter compared with the same quarter one year ago.

For informational purposes, we have also included year-to-date price returns, the price-to-earnings ratio, recent stock price and, where applicable, dividend yield.

More about Trading Central

Trading Central is a global leader in financial market research and investment analytics for retail online brokers and institutions. Its product suite provides actionable trading ideas based on technical and fundamental research covering stocks, exchange-traded funds, indexes, forex, options and commodities. Strategy Builder, our stock screener, is available through leading retail brokers in Canada and worldwide.

What we found

Our screener ranks the list based on all performance and revenue criteria. The top 15 ranked stocks are shown in the accompanying table.

Topping our list is Zoom Video Communications Inc., a popular video conference platform amid the pandemic. The company has the highest revenue growth on our list at 366.5 per cent in the past quarter when compared with the same quarter in the prior year. It’s no surprise the stock has the best one-year price performance on our list at 394 per cent. The stock price pulled back 44 per cent from its high back in October and has started to rebound this month. The company is expected to report fourth-quarter earnings on March 1 after the market close.

Nvidia Corp., a designer of graphics processors, just posted a new record high this week after being in a trading range since September. The recent break above the trading range may be a signal of a continuation of the uptrend that started back on May 11 when the stock broke to a similar new record high. Nvidia Corp. has the second-best one-year performance on our list at 126.5 per cent. The company is slated to report fourth-quarter earnings on Feb. 24 after the market close.

Story continues below advertisement

We must mention Microsoft Corp., which has been in the news regarding its possible interest in the social networking site Pinterest. The company reported record high earnings last quarter and is only up 9.5 per cent year-to-date, compared with the average year-to-date return on our list of 21 per cent. Similar to Nvidia, Microsoft has also broken above a trading range to a new record high this week, suggesting a continuation of the prior uptrend.

Trading Central Strategy Builder provides a back-testing capability to evaluate how well an investing strategy would have worked in the past. Using a five-year historical period with quarterly rebalancing, the screen described had a 29.4 per cent annualized total return, which was above its own benchmark, the Nasdaq-100, which returned 27.6 per cent on the same basis. The total return for the broader S&P 500 index was 15.8 per cent over the same period.

The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.

Select Nasdaq-listed big caps showing revenue growth, upside price momentum 

RankCompanySymbolMkt. Cap. (US$ Bil.)1Y Price Perf. (%)4W Price Perf. (%)Rev. Grth. (Last Qtr. vs. Prior Yr. %)YTD Price Perf. (%)P/ERecent Price (US$)Div. Yld. (%)
1Zoom Video Comm.ZM-Q128.0394.018.2366.530.2300.9437.30n/a
2NetEase Inc.NTES-Q91.689.022.427.539.440.4132.980.6
3PayPal Holdings Inc.PYPL-Q348.3150.315.623.327.0120.6297.50n/a
4Skyworks SolutionsSWKS-Q30.756.517.468.522.227.4186.371.1
5eBay IncEBAY-Q42.471.111.928.324.118.262.371.2
6Nvidia Corp.NVDA-Q375.0126.59.156.816.185.6605.650.1
7Okta Inc.OKTA-Q37.3110.111.742.013.3n/a287.69n/a
8ASML Holding NVASML-Q199.469.510.332.520.056.0476.500.6
9JD.com Inc.JD-Q154.9143.19.229.212.9167.599.16n/a
10Alphabet Inc.GOOGL-Q1,410.037.319.423.518.542.12,070.20n/a
11Activision Blizzard ATVI-Q79.869.014.552.411.335.2103.410.5
12Applied MaterialsAMAT-Q97.271.68.024.928.727.6110.950.8
13Microsoft Corp.MSFT-Q1,830.031.912.216.79.536.1242.930.9
14Synopsys IncSNPS-Q285.643.717.941.019.710.263.92n/a
15Workday IncWDAY-Q275.666.120.573.67.715.0n/an/a

Source: Trading Central 

Gary Christie is head of North American research at Trading Central in Ottawa.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies