“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.
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.