The 7 Best Nasdaq Stocks in 2017

best nasdaq stocks in 2017Our Nasdaq Stocks List Offers Jaw-Dropping Returns

Over the last 10 years, the Nasdaq Composite Index crushed the S&P 500 and the Dow Jones Industrial Average. It doubled their performance, in part, because top Nasdaq stocks are more innovative and exciting than those on other exchanges.

To take full advantage of this trend, we’ve formulated a list of the best Nasdaq stocks in 2017.

Many of these stocks are a threat to existing tech giants. Others are simply riding high on emerging technologies. In both cases, however, there is massive upside to be exploited.

Smart investors want to find themselves on the right side of these trades. History has not been kind to those who bet against technology. They never fare well over the long term, because new technologies are what push society forward. They are the engines of tomorrow.

Moreover, the cost of building new technology companies fell after 1995. What happened in 1995, you ask? To put it simply: the Internet took hold of the economy.

Digital software opened a whole new spectrum of opportunity for ambitious young entrepreneurs, and investors bore the fruits of their labor.

Don’t get me wrong; mistakes were made. Hundreds of technology firms (if not thousands) collapsed in the dot-com crash of 2000. Most of them were ill-conceived, over-hyped, and lacking anything that looked like a business model. They were pie-in-the-sky stocks.

That was a dark moment for tech investors. But it wasn’t the end of the story. Like a child that burned its hand on a stove, the tech sector learned a lesson from that pain. Put another way, the tech sector grew up after the dot-com crash.

Facebook Inc (NASDAQ:FB), Alphabet Inc (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL) all came of age in the decade that followed.

They weren’t alone. Just look at the performance of the Nasdaq 100 Index when compared to the S&P 500 and the Dow Jones Industrial Average.

top nasdaq stocks chart

Chart courtesy of StockCharts.com

The difference is huge. Remember that we’re not talking about specific stocks here. It’s pretty normal to see one company outstrip another, but wide discrepancies between indices is something else. It is proof of what I’ve been saying—top Nasdaq stocks offer the best returns!

7 of the Best Nasdaq Stocks in 2017

When looking at our Nasdaq stocks list, investors should remember a key insight from behavioral economics. Everyone is biased, even when they think they’re being rational.

This insight comes out of the work of famed psychologists, Daniel Kahneman and Amos Tversky. You might want to heed their warning, especially since Kahneman won the Nobel Prize in Economics. Their insights help explain why most investors lose money on the stock market.

Few of us are willing to admit our bias. We want to believe in our gut, our unique ability to distinguish the right answer. But that’s a poor strategy for making money.

Trusting the numbers is a more logical choice. So here’s our list of the best Nasdaq stocks in 2017, as arranged by their year-to-date return.

TOP PERFORMING NASDAQ 100 STOCKS

Symbol

Company

YTD Return

Share Price

INCY

Incyte Corporation

35.63%

$136.00

NTES

NetEase Inc (ADR)

35.34%

$291.44

ATVI

Activision Blizzard, Inc.

34.53%

$48.58

CSX

CSX Corporation

32.62%

$47.65

SWKS

Skyworks Solutions Inc

29.51%

$96.69

ILMN

Illumina, Inc.

28.40%

$164.40

STX

Seagate Technology PLC

26.04%

$48.11

All but one of them have crossed 25% gains in under a quarter, suggesting they could generate triple-digits gains by the end of 2017.

Yes, I am aware that “past results don’t indicate future performance” but this is one time it may be true. Are we supposed to ignore a nation-wide improvement in consumer sentiment? What about the slight rise in middle class wages? Or flickers of life in the IPO market?

These signs point to one thing: A bull market.

But if you’re still concerned, here’s a little more information about each of the companies on our list of the best Nasdaq stocks.

1. Incyte Corporation (NASDAQ:INCY)

We often use the phrase, “It’s not like they’re curing cancer,” to suggest that a firm is doing unimportant work. By that definition, though, Incyte Corporation (NASDAQ:INCY) is still incredibly important. Why? Because it actually is trying to solve cancer through the discovery, development, and commercialization of cancer treatments. The Wilmington, Delaware-based company has drugs in Phase I and II clinical trials. You can see its performance on the INCY stock chart below.

INCY stock chart

Chart courtesy of StockCharts.com

2. NetEase Inc (ADR) (NASDAQ:NTES)

A lot of investors pin their hopes on the idea that American firms will “make inroads into China.” This strikes me as weird. Why not just invest in a Chinese company that does the same thing? NetEase Inc (ADR) (NASDAQ:NTES) is a great example. NTES stock is cross-listed on the Nasdaq stock exchange, and it owns some of the most popular digital brands in China. From gaming to email to virtual currency—this Chinese stock does it all.

NTES stock chart

Chart courtesy of StockCharts.com

3. Activision Blizzard, Inc. (NASDAQ:ATVI)

Speaking of video games, Activision Blizzard, Inc. (NASDAQ:ATVI) is on a roll. 57% earnings-per-share growth can have that effect. And off 49% revenue growth no less. The share price is clearly on a tear, but I’d advise caution while trading ATVI stock. It’s a little pricey at the moment, so there could be volatility to the downside. Nonetheless, ATVI is winning big in 2017, earning its place on the list of our best Nasdaq stocks in 2017.

ATVI stock chart

Chart courtesy of StockCharts.com

4. CSX Corporation (NASDAQ:CSX)

It may seem odd to have railroad companies included in the Nasdaq Composite Index, but it’s really not that strange. Railroads were new technology at one point. Just because they were successful enough to last several generations doesn’t mean we should ignore them. CSX Corporation (NASDAQ:CSX) is still racking up impressive gains, despite operating 21,000 miles of railroad in 23 states. Just take a look at the CSX stock chart below if you’re skeptical.

CSX stock chart

Chart courtesy of StockCharts.com

5. Skyworks Solutions Inc (NASDAQ:SWKS)

Skyworks Solutions Inc (NASDAQ:SWKS) is an inexpensive bet on semiconductor parts. Its chips are uniquely suited for the Internet of Things because improving the efficiency of other microprocessors is what they do. It’s the semiconductor equivalent of an oil change. So it’s no surprise that SWKS stock is soaring as the need for semiconductor efficiency rises.

SWKS stock chart

Chart courtesy of StockCharts.com

6. Illumina, Inc. (NASDAQ:ILMN)

This is perhaps the most cutting edge of our best Nasdaq stocks in 2017 list. Illumina, Inc. (NASDAQ:ILMN) is working on “sequencing and array-based solutions for genetic analysis.” Which basically means that Illumina is a supplier to all the research departments, government agencies, and biotech companies that want to commercialize gene editing. This is expected to be a major market over the next decade, so I’m bullish on ILMN stock.

ILMN stock chart

Chart courtesy of StockCharts.com

7. Seagate Technology PLC (NASDAQ:STX)

Once again we have a company that’s coasting on a tech trend. Seagate Technology PLC (NASDAQ:STX) makes its money from something we all need as more and more of our lives are spent on digital devices. Put it this way: What will everyone need as they spend more and more of their time on computers?

Answer: Data storage devices. That is what Seagate sells, and it’s what makes STX stock so attractive.

STX stock chart

Chart courtesy of StockCharts.com

Conclusion

Investors can ignore the writing on the wall, but they do so at their own peril. A fair reading of recent financial history leads to a favorable impression of the Nasdaq Composite Index, no matter what your investing preference.

Numbers do not lie. And for the moment, the stock market rally is an excellent sign for our best Nasdaq stocks in 2017 list. The optimism is encouraging more startups to go public, something they were reluctant to do in 2015 and 2016.

Hot tech firms like Snap Inc., Uber Technologies, Inc., and Pinterest chose to stay private and raise money from venture capital funds. They didn’t want to hold an initial public offering when investors had no appetite for the riskiness involved with new tech stocks.

But investors are hungry again. Snap is officially trading on an exchange, and Pinterest is close behind. Uber may delay because of recent PR snafus, but it’s aware that the bullish window is open briefly. There has rarely been such a good time to invest in Nasdaq stocks.

Investors should take advantage of this as soon as possible.