Despite all the challenges and uncertainty created by the coronavirus pandemic over the last year, the stock market has still managed an impressive run. Investors in the tech space have fared particularly well. The S&P 500 index has climbed more than 15.5% over the last 12 months, and the even more tech-heavy Nasdaq Composite index is up roughly 45% across the same stretch.
Technology is reshaping business and everyday life, and this broad trend continues to be reflected in stock market performance. With investors looking for long-term growth and protection against inflation and volatile economic conditions, the sector offers attractive opportunities and will continue shaping the market's overall performance.
Read on for a look at three tech stocks that have more than doubled recently and could double again (or more) in 2021.
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1. Himax Technologies
The stock of Himax Technologies (HIMX 3.17%) has rallied as demand for the company's display drivers has rebounded. Display drivers regulate the colors shown by pixels on display screens, and signs of a robust mobile upgrade cycle have the business experiencing an upswing. The semiconductor specialist's share price is up roughly 168% over the last year, and it's fair to say the company has earned the rally.
Third-quarter sales grew 46% year over year, and its adjusted earnings per share soared 281.6%. That stellar earnings growth admittedly stems in part from a low basis of comparison, but there's been an impressive performance rebound nevertheless, and it looks like the company's resurgence could just be getting started. The relatively modest forward P/E ratio of approximately 27.5 and a forward price-to-sales ratio of 1.6 suggest the stock hasn't become unreasonably stretched.
5G network support and augmented reality (AR) applications look poised to drive a new decade of growth in mobile, and Himax should benefit as new screen and camera technologies push the market forward. Development initiatives in AR and machine vision could turn into catalysts for the stock, and shares are still not prohibitively valued. With the company pursuing revolutionary growth trends and its core business looking stronger than it has in years, Himax stock still has room for explosive growth.
2. Impinj
Impinj (PI 3.25%) is a company that makes radio-frequency identification (RFID) tags, sensors, and software. These technologies can be used to track inventory, monitor manufacturing and logistics processes, and generally bring nonelectronic objects into the Internet of Things and the world of networked data.
Demand for Impinj's products was hurt by the pandemic, but it looks like the business is poised for recovery in the short term and potentially explosive growth over the long term.
Headwinds in end markets including retail and airlines hit the company's sales hard, with revenue slipping 8.5% year over year across the first nine months of 2020. However, the company recently published preliminary fourth-quarter results that came in significantly ahead of management's guidance and the market's expectations, and the stock price is now up 120% since the beginning of 2020.
Even with the recent rally, Impinj still looks like a hot ticket for investors who are willing to play the long game.
Right now, the core markets for the company's products are retail and supply chain automation, and there's still plenty of room for growth there. For patient investors who are willing to accept some potential for near-term volatility, there's a good chance that demand will bounce back and continue to expand in Impinj's core markets, and new applications for its RFID technologies could power an impressive run for the stock.
3. Fiverr
Shares of Fiverr International (FVRR 3.51%) have been extraordinarily hot over the last year, with incredible performance being driven by strong execution and signs of powerful momentum for the overall gig economy.
Fiverr provides a platform that revolves around connecting one-off clients and contract workers for low-cost jobs, often charging in the range of $5. While the business will likely retain its value-focused services across its platform, it should have opportunities to expand its offerings, and its gig marketplace is already seeing stellar growth.
The company's sales soared 88% year over year in the third quarter, and net active buyers on its platform climbed 37% versus the prior-year period. Management expects total revenue to climb between 74% and 75% in fiscal 2020. Fiverr is a business that's expanding at a rapid clip and has a tremendous runway for continued growth as it brings more users onboard its market platform and expands its services. The gig-economy stock could turn into a big winner for long-term shareholders.
