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 (NASDAQ:HIMX) 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 (NASDAQ:PI) 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…