With several months having now passed since each pick, we can begin to measure the performance of each stock recommended by analysts at The Motley Fool Stock Advisor during the third quarter.
So far the group has delivered an average gain of 18%, outperforming each of the major indexes during that span. Here’s a breakdown.
Crowdstrike Holdings Inc (NASDAQ: CRWD)
Tom Gardner recommended CrowdStrike for three key reasons, the big one being that the company’s Falcon platform is more effective than its competitors. And with millions of people working from home during the pandemic, cybersecurity has become more critical than ever. This has increased both the size of the addressable market and the need for a company like CrowdStrike.
The company also reported both earnings and guidance in early September above analyst estimates.
ASML Holding (NASDAQ: ASML)
David Gardner’s recommendation of ASML, the Dutch semiconductor company, is because they’re the market leader in lithography systems, which are required to make newer generation 7-nanometer-and-under chips.
While other semiconductor companies specialize in certain chips, ASML is chip agnostic. According to Gardner, ASML has a monopoly on extreme ultraviolet (EUV) lithography technology, with a large head start over potential competitors. This means the company will continue to grow as the world becomes more reliant on semiconductors for everything.
Wix.com Ltd (NASDAQ: WIX)
Tom Gardner recommended Wix.com in August as a pandemic play. Though the stock has rallied hard this year along with other e-commerce plays, the company’s freemium model allows it to acquire customers at a greater rate than its peers.
“Despite its rich valuation, Wix.com is in the perfect space to profit from the desperate need among millions of businesses worldwide to get access to the power of the internet,” he wrote.”
JD.com Inc (NASDAQ: JD)
David Gardner’s recommendation of JD.com is another pandemic play. He likes the stock because the company appears to be closing the gap with Alibaba (NYSE: BABA).
JD, which has only been profitable for one year, recently reported EPS for Q3 above estimates along with in-line revenue. They also recently racked up $43.17 billion in sales from Singles’ Day.
That growth, combined with the fact that its largest competitor appears to be in the regulatory crosshairs, has JD well-positioned going forward.
Fiverr International Ltd (NYSE: FVRR)
Tom Gardner wrote to buy Fiverr seven weeks before the company reported a blowout quarter, sending its shares skyrocketing.
Though he acknowledged there are other players in the space (notably Upwork (NASDAQ: UPWK), the $100 million total addressable market for the gig economy in the U.S. alone makes this an attractive play. Going forward, a lot of the company’s growth should come from international markets, as they’ve expanded all over Europe in 2020.
Bandwidth Inc (NASDAQ: BAND)
David Gardner’s call to buy Bandwidth comes down to the “late mover advantage.”
Unlike the other names on this list, BAND has been around for decades. But their timing—building up their network after the dotcom bubble and before newer competitors like Twilio (NASDAQ: TWLO) and RingCentral (NASDAQ: RING) entered the market—allowed them to acquire close to 70 million numbers for its voice over internet protocol service.
Today, Bandwidth counts most of the largest conferencing solutions as customers, including Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) for Google Voice, Microsoft Corporation (NASDAQ: MSFT) for Skype, and Zoom Video Communications (NASDAQ: ZM).
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