The "Tech Titans" ProPicks strategy delivered impressive returns in March 2024, outpacing major benchmark indices. The strategy generated a robust 1.84% return over the past month and an exceptional 26.93% return over the last three months, surpassing the S&P 500 (SPX), Dow Jones Industrial Average (DJI), and Nasdaq 100 (NDX) during both periods.
Performance Recap
In March, the "Tech Titans" strategy's 1.84% return outshone the DJI's 1.23%. Over the three-month horizon, the strategy's 26.93% return dwarfed the SPX's 9.94% and the DJI's 4.98%.
Several holdings within the "Tech Titans" portfolio delivered stellar returns last month:
1. MicroStrategy Incorporated (MSTR): 51.64%
2. Super Micro Computer, Inc. (NASDAQ:SMCI): 14.54%
3. AppLovin Corporation (NASDAQ:APP): 11.05%
4. NVIDIA Corporation (NASDAQ:NVDA): 9.83%
5. DocuSign, Inc. (NASDAQ:DOCU): 6.69%
These top performers exemplify the strategy's ability to identify and capitalize on high-growth opportunities within the technology sector.
New Additions
The "Tech Titans" strategy welcomed three new holdings in March 2024, each presenting compelling growth prospects:
1. Allegro MicroSystems, Inc. (ALGM)
- Description: Allegro MicroSystems is a leading global developer of sensing and power solutions for motion control and energy-efficient systems in automotive and industrial markets.
- Market Cap (Adjusted): $5.19B
- Basic EPS (Cont. Ops): $1.15
- Basic EPS Growth: 45.84%
- P/E Ratio: 23.38
- Analyst Outlook: Allegro MicroSystems is well-positioned to benefit from the increasing demand for advanced sensing and power management solutions in the automotive industry, driven by the growth of electric vehicles and advanced driver assistance systems (ADAS). The company's strong partnerships with major automakers and its innovative product portfolio support its long-term growth potential. However, the cyclical nature of the automotive industry and potential supply chain disruptions pose risks to the company's near-term performance.
2. Axcelis Technologies, Inc. (NASDAQ:ACLS)
- Description: Axcelis Technologies is a leading supplier of ion implantation and other processing equipment used in the fabrication of semiconductor chips.
- Market Cap (Adjusted): $3.67B
- Basic EPS (Cont. Ops): $7.52
- Basic EPS Growth: 35.68%
- P/E Ratio: 14.89
- Analyst Outlook: Axcelis Technologies is expected to benefit from the increasing demand for semiconductor chips across various industries, including automotive, consumer electronics, and data centers. The company's strong market position, technological expertise, and expanding customer base support its growth prospects. However, the cyclical nature of the semiconductor industry and intense competition from larger players may impact the company's profitability.
3. Agilysys , Inc. (NASDAQ:AGYS)
- Description: Agilysys is a leading provider of innovative hospitality software solutions, offering point-of-sale, property management, inventory and procurement, and mobile and wireless solutions to the hospitality industry.
- Market Cap (Adjusted): $2.28B
- Basic EPS (Cont. Ops): $3.41
- Basic EPS Growth: 686.74%
- P/E Ratio: 26.66
- Analyst Outlook: Agilysys is well-positioned to capitalize on the digital transformation of the hospitality industry, as hotels and resorts increasingly adopt cloud-based solutions to streamline operations and enhance guest experiences. The company's strong product portfolio, expanding customer base, and recurring revenue model support its long-term growth potential. However, the ongoing impact of the COVID-19 pandemic on the hospitality industry may affect the company's near-term performance.
Portfolio Updates
The "Tech Titans" strategy made several adjustments to its holdings in March 2024, removing three stocks and continuing to hold 11 others.
Removed Stocks:
1. RingCentral, Inc. (NYSE:RNG) - Monthly Return: -0.38%
2. DocuSign, Inc. (DOCU) - Monthly Return: 6.69%
3. Pure Storage, Inc. (NYSE:PSTG) - Monthly Return: -5.91%
Continue Holding:
1. NVIDIA Corporation (NVDA) - Monthly Return: 9.83%
- Description: NVIDIA is a leading designer of graphics processing units (GPUs) for gaming and professional markets, as well as system on a chip (SoC) units for the mobile computing and automotive market.
- Market Cap (Adjusted): $2,224.01B
- Basic EPS (Cont. Ops): $12.05
- Basic EPS Growth: 586.29%
- P/E Ratio: 74.73
- Analyst Outlook: NVIDIA is expected to maintain its leadership position in the GPU market, driven by strong demand from the gaming, data center, and artificial intelligence (AI) sectors. The company's ongoing innovation, strategic partnerships, and expanding addressable market support its long-term growth prospects. However, the company faces intense competition from rivals such as AMD and Intel (NASDAQ:INTC), and its stock valuation remains elevated, which may lead to volatility in the near term.
2. Extreme Networks , Inc. (NASDAQ:EXTR) - Monthly Return: -7.70%
- Description: Extreme Networks is a leading provider of software-driven networking solutions for enterprise customers, offering wired and wireless network infrastructure, software for network management, analytics, and security.
- Market Cap (Adjusted): $1.48B
- Basic EPS (Cont. Ops): $0.62
- Basic EPS Growth: 66.43%
- P/E Ratio: 18.45
- Analyst Outlook: Extreme Networks is well-positioned to benefit from the growing demand for secure, reliable, and high-performance network infrastructure, driven by the increasing adoption of cloud computing, Internet of Things (IoT), and digital transformation initiatives. The company's strong product portfolio, expanding customer base, and focus on software and services support its growth prospects. However, the company faces intense competition from larger networking vendors, and its exposure to the cyclical nature of enterprise IT spending may impact its near-term performance.
New Holdings:
1. Allegro MicroSystems, Inc. (ALGM)
2. Axcelis Technologies, Inc. (ACLS)
3. Agilysys, Inc. (AGYS)
The "Tech Titans" strategy's recent adjustments reflect its commitment to identifying and capitalizing on high-growth opportunities within the technology sector while adapting to changing market conditions.
In summary, the "Tech Titans" ProPicks strategy delivered impressive returns in March 2024, outperforming major benchmark indices. The strategy's strong performance, coupled with its strategic portfolio adjustments and the addition of promising new holdings, positions it well for continued success in the dynamic technology landscape. As always, investors should carefully consider their investment objectives and risk tolerance before making any investment decisions.
Monthly News Highlights
NVIDIA Corporation (NVDA)
- On March 1, NVIDIA's stock market value was set to close above $2 trillion for the first time after an optimistic report from Dell Technologies (NYSE:DELL) indicated a surge in orders for its AI-optimized servers. NVIDIA's stock rose by 3.5%, pushing its market capitalization to $2.05 trillion. Read more
- On March 4, NVIDIA surpassed Saudi Aramco (TADAWUL:2222) to become the world's third-most valuable public company, after Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). The semiconductor company has experienced a rally in its share price due to increased demand for artificial intelligence (AI) technology. Read more
- On March 5, CFRA raised its price target for NVIDIA stock from $840 to $1,000 based on a bullish outlook for the company's next-generation GPUs and anticipated market demand. CFRA predicts that NVIDIA will outperform consensus forecasts as it introduces its new GPUs. Read more
- On March 7, Mizuho Securities raised its price target for NVIDIA Corporation to $1,000 from $850, citing the company's strong position in the artificial intelligence (AI) sector. Mizuho predicts that NVIDIA's potential revenue growth in the data center segment could reach approximately $89 billion by 2024. Read more
MicroStrategy Incorporated (MSTR)
- On March 4, business intelligence firm MicroStrategy announced plans to raise $600 million through the issuance of Senior Convertible notes. The company intends to use the net proceeds from this financing to purchase additional Bitcoin and for general corporate purposes. Read more
- On March 11, MicroStrategy purchased an additional 12,000 Bitcoin using $800 million raised from a convertible note offering. This brings MicroStrategy's total Bitcoin holdings to 205,000 BTC, acquired at an average cost of $31,500 per Bitcoin. Read more
Nutanix, Inc. (NASDAQ:NTNX)
- On March 4, enterprise cloud computing leader Nutanix reported a strong performance in the second quarter of fiscal year 2024, surpassing all guided metrics and achieving record quarterly revenue alongside its first GAAP operating profitability. The company's success is attributed to steady demand for its solutions as businesses continue to prioritize digital transformation and infrastructure modernization. Read more
- On March 20, Nutanix filed a lawsuit against Tessell for alleged copyright and patent infringement. Nutanix claims that three founders of Tessell, who were previously employed by Nutanix, used the company's resources to develop and finance their own product while still working at Nutanix. Read more
- On March 27, Morgan Stanley maintained its Equalweight rating on Nutanix shares but increased the price target to $63 from $58. The firm believes that Nutanix could experience a revenue growth boost of 2-5% due to potential increased traction following Broadcom (NASDAQ:AVGO)'s acquisition of VMware (NYSE:VMW). Read more
Super Micro Computer, Inc. (SMCI)
- On March 4, Super Micro Computer (SMCI) stock surged over 12% in premarket trading after it was announced that the company will be added to the S&P 500 index. SMCI is the best-performing large-cap company this year, with its stock surging nearly 220% since January 1. Read more
- On March 13, Super Micro Computer (SMCI) stock saw a significant increase of over 315% year-to-date, with shares on the verge of breaking above $1200. The company is a leading AI infrastructure provider and has partnerships with key AI component suppliers such as NVIDIA, AMD, and Intel. Read more
- On March 18, Super Micro Computer was set to join the S&P 500 index. The company benefits from close ties with Nvidia and Advanced Micro Devices (NASDAQ:AMD), allowing it to launch products faster than rivals Dell and Hewlett Packard Enterprise (NYSE:HPE). Analysts expect triple-digit percentage growth for Super Micro's revenue to continue until at least September 2024. Read more
Zoom Video Communications , Inc. (NASDAQ:ZM)
- On March 19, investment firm Jefferies initiated coverage of Zoom Video with a 'hold' rating and a price target of $70. Jefferies acknowledged Zoom's position as a leading collaboration platform but also noted its current transition phase. Read more
- On March 25, Zoom announced that its AI-powered collaboration platform, Zoom Workplace, is now available in AWS Marketplace. This allows customers to purchase Zoom Workplace products, including Meetings, Team Chat, Phone, Whiteboard, Spaces, as well as Zoom Contact Center and Revenue Accelerator through the digital catalog. Read more
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.