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For your shopping list: These big tech stocks have dropped as much as 20% over the past month

By Philip van Doorn

Hard-hit tech stocks include DocuSign, Adobe, Nvidia and Facebook

Technology stocks have slumped. What investors never know is how long it will take for the inevitable sector reversal.

A list of the worst-performing technology stocks over the past month among the S&P 500 Index and the Nasdaq 100 Index is below.

Here's how the 11 sectors of the S&P 500 Index have performed over the past month, excluding dividends:

Index  Price change -- one month  Price change -- 2021  Price change -- 2020  Price change since end of 2019 
Health Care  -8.1%  10.5%  11.4%  23.1% 
Real Estate  -7.6%  23.4%  -5.2%  17.0% 
Information Technology  -7.1%  13.4%  42.2%  61.3% 
Communication Services  -6.9%  20.3%  22.2%  47.0% 
Utilities  -6.4%  3.1%  -2.8%  0.2% 
Materials  -6.0%  10.2%  18.1%  30.2% 
Industrials  -5.4%  11.3%  9.0%  21.3% 
Consumer Staples  -5.4%  2.5%  7.6%  10.3% 
Consumer Discretionary  -3.0%  9.3%  32.1%  44.3% 
Financials  -0.2%  28.4%  -4.1%  23.2% 
Energy  14.2%  45.2%  -37.3%  -9.0% 
S&P 500 Index  -5.2%  14.5%  16.3%  33.1% 
Source: FactSet 

All in all, 2021 has been a fine year for stock market performance, especially when considering that it has followed what turned out to be a good 2020 for most sectors. The technology sector was the third-worst-performing sector from Sept. 3 through Oct. 4, but it has been the clear leader from the end of 2019 through the Covid-19 pandemic.

Wedbush analyst Dan Ives attributed the pullback in technology stocks to the fear of rising interest rates and concern over growth-stock valuations in a note to clients on Oct. 5. He went on to predict the pressure on tech stocks would be "short-lived" and that the sector would be up 10% from here through the end of 2021.

"[T]he tech growth stories are being massively underestimated by the Street inour opinion with 3Q earnings a major positive catalyst for the tech sector lookingahead," Ives wrote.

The overwhelming tendency for companies reporting quarterly results to beat analysts' consensus estimates may well turn the analyst's prediction into reality in only a few weeks.

Ives sees a "multitrillion opportunity for the next decade" as the digital transformation of multiple industries continues. His favorite investments include Apple Inc. (AAPL) among the FAANG stocks. For plays on cloud computing, his favorites among large-cap stocks are Microsoft Corp. (MSFT) and DocuSign Inc. (DOCU). Among large-cap companies poised for the best growth as cybersecurity threats are dealt with, Ives's top recommendations are Zscaler Inc. (ZS), Palo Alto Networks Inc. (PANW) and Fortinet Inc. (FTNT).

Biggest large-cap tech drops over the past month

To list tech stocks, we began with the S&P 500 information technology sector and then added tech-oriented names in other sectors, such as Facebook Inc. (FB), Twitter Inc. (TWTR) and videogame developers in the communications sector and Amazon.com Inc. (AMZN) in the consumer discretionary sector. We then added tech companies in the Nasdaq-100 that aren't included in the S&P 500.

From this expanded list of 105 tech stocks, here are the 20 worst performers from Sept. 3 through Oct. 4:

Company  Price change -- one month  Price change -- 2021 through Oct. 4  Decline from 52-week high  Date of 52-week high 
DocuSign Inc. DOCU  -20%  11%  -22%  08/10/2021 
MercadoLibre Inc. MELI  -18%  -5%  -21%  01/21/2021 
Okta Inc. Class A OKTA  -17%  -12%  -23%  02/12/2021 
Pinduoduo Inc. ADR Class A PDD  -17%  -52%  -60%  02/16/2021 
Enphase Energy Inc. ENPH  -17%  -17%  -37%  02/10/2021 
Peloton Interactive Inc. Class A PTON  -16%  -46%  -52%  01/14/2021 
Adobe Inc. ADBE  -16%  12%  -17%  09/03/2021 
Zebra Technologies Corp. Class A ZBRA  -15%  31%  -16%  09/03/2021 
Trimble Inc. TRMB  -14%  22%  -16%  08/30/2021 
CrowdStrike Holdings Inc. Class A CRWD  -14%  13%  -17%  08/30/2021 
Synopsys Inc. SNPS  -14%  12%  -15%  09/03/2021 
Nvidia Corp. NVDA  -14%  51%  -14%  08/30/2021 
Facebook Inc. Class A FB  -13%  19%  -15%  09/01/2021 
JD.com Inc. ADR Class A JD  -13%  -21%  -36%  02/17/2021 
Zoom Video Communications Inc. Class A ZM  -13%  -23%  -56%  10/19/2020 
Skyworks Solutions Inc. SWKS  -13%  4%  -22%  04/29/2021 
Qualcomm Inc. QCOM  -12%  -17%  -25%  01/20/2021 
IPG Photonics Corp. IPGP  -12%  -32%  -42%  01/19/2021 
Teradyne Inc. TER  -12%  -11%  -27%  02/16/2021 
PayPal Holdings Inc. PYPL  -12%  9%  -18%  07/26/2021 
Source: FactSet 

Click on the tickers for more about each company. Click here for Tomi Kilgore's detailed guide to the wealth of information available for free on MarketWatch quote page.

Leaving the group of 20 tech stocks in the same order, here's a summary of opinion among Wall Street analysts polled by FactSet:

Company  Share "buy" ratings  Closing price -- Oct. 4  Consensus price target  Implied 12-month upside potential 
DocuSign Inc. DOCU  77%  $246.57  $323.18  31% 
MercadoLibre Inc. MELI  77%  $1,592.75  $2,113.68  33% 
Okta Inc. Class A OKTA  74%  $224.96  $296.88  32% 
Pinduoduo Inc. ADR Class A PDD  79%  $85.08  $136.46  60% 
Enphase Energy Inc. ENPH  67%  $145.03  $199.29  37% 
Peloton Interactive Inc. Class A PTON  74%  $82.35  $129.67  57% 
Adobe Inc. ADBE  83%  $558.49  $710.33  27% 
Zebra Technologies Corp. Class A ZBRA  58%  $502.32  $593.33  18% 
Trimble Inc. TRMB  62%  $81.37  $94.67  16% 
CrowdStrike Holdings Inc. Class A CRWD  88%  $238.88  $311.83  31% 
Synopsys Inc. SNPS  87%  $289.25  $339.69  17% 
Nvidia Corp. NVDA  81%  $197.32  $233.93  19% 
Facebook Inc. Class A FB  76%  $326.23  $421.09  29% 
JD.com Inc. ADR Class A JD  94%  $69.41  $92.72  34% 
Zoom Video Communications Inc. Class A ZM  50%  $259.58  $350.56  35% 
Skyworks Solutions Inc. SWKS  59%  $159.69  $216.39  36% 
Qualcomm Inc. QCOM  62%  $126.68  $181.67  43% 
IPG Photonics Corp. IPGP  43%  $153.19  $215.89  41% 
Teradyne Inc. TER  56%  $107.27  $147.56  38% 
PayPal Holdings Inc. PYPL  85%  $255.01  $331.95  30% 
Source: FactSet 

Don't miss:Bank stocks are cheap -- here are the 20 best players in the industry

-Philip van Doorn

 

(END) Dow Jones Newswires

10-05-21 1009ET

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