BlackRock (NYSE: BLK) chief equity strategist Kate Moore said in an interview with Bloomberg Television this week that the world’s largest money manager is “not giving up on technology” stocks.
“The tech sector is still a well-liked and well-loved sector across BlackRock,” Moore said.
But this year, it may be out with the old and in with the new in the tech sector.
Large-caps in the sector have largely had a good year so far in 2019, but there’s a new set of smaller tech stocks shaking up the market that have seen massive rallies in the first few trading days of the year.
Of these, Todd Gordon, the founder of TradingAnalysis.com, says there are three names that you should consider now.
Twilio (NYSE: TWLO) is Gordon’s first pick. The stock is up 18% in the last week and more than 270% over the last twelve months.
Earlier this week, KeyCorp reiterated its Overweight rating on the stock and boosted its price target to $114, nearly 19% higher than today’s closing price.
Gordon says that the cloud communications company is one of the favorites in his portfolio, and says that it’s a good sign for the stock that it is “just hanging on right towards the highs” despite all of the volatility we’ve seen recently.
His next pick is Etsy (NASDAQ: ETSY), where Gordon sees “a ton of strength” based on how the stock has performed compared to the broader market. He believes the e-commerce company could push past its old highs, which would see the stock at least 13% higher.
Last month, Loop Capital boosted its twelve month price target for the stock from $57 to $70 – 37% higher than Thursday’s closing price.
Lastly, Gordon thinks Square (NYSE: SQ) could be due for a breakout.
Gordon said that shares of the company have been moving in a downtrend and “if you can get more of a pop through there, then Square could do a little catch up on the upside.”
But of the three, Square may be the best option.
Analysts’ average price target for the stock is $85.24, or nearly 29% higher over the next twelve months. Earlier this week, Nomura boosted its price target for SQ to $108 – nearly 64% higher than the current price.