5 Top-Ranked Internet Stocks to Buy for 2020

5 2020年全球排名第一的互联网股票

2019/12/26 00:00  Aniruddha Ganguly

Year 2019 has been exceptional for Internet stocks as evident from the robust year-to-date performance of Invesco NASDAQ Internet ETF (PNQI), which has rallied 29.5% compared with the SPDR S&P 500 ETF’s (SPY) growth of 28.5%.

Increasing allegiance to online gaming, music and video streaming services have been boosting growth prospects. Additionally, rising Internet penetration, particularly in emerging markets including Latin America, Africa and South East Asia, presents significant growth opportunities.

Per Statista data, almost 58% or 4.48 billion people were active Internet users as of October 2019. Moreover, the number of people using Internet is expected to be 6 billion or 75% of the estimated global population by 2022, according to Cybersecurity Ventures.

The outperformance is expected to continue in 2020 due to rapid adoption of cloud computing and IoT, proliferation of e-commerce, growing clout of social-media platforms and expanding online delivery services.

Data Explosion to Aid User Base Expansion

Internet companies are delivering innovative solutions to address evolving consumer preference, which is driven by the need for convenience and easy accessibility. The ongoing data explosion is a major growth driver in this regard.

Per Cisco’s Visual Networking Index, annual global IP traffic will reach 4.8 zettabytes (ZB) per year by 2022. In 2017, the annual run rate for global IP traffic was 1.5 ZB per year. Overall, IP traffic will witness CAGR of 26% between 2017 and 2022.

According to World Economic Forum, the entire digital universe is expected to reach 44 ZB by 2020.

Internet-based companies have seamless access to this massive hoard of information and they are using it to develop new innovative solutions by infusing AI, ML and deep learning technologies.

Moreover, real-time analysis of user data supported by AI tools is helping advertisers target the right audience, which is boosting their return on investment. Additionally, focus on video streaming has been driving user engagement that is attracting advertising dollars.

Further, demand for cloud infrastructure monitoring, web-based application performance management, human capital management (HCM) and cyber security software has been on the rise.

Additionally, social media platforms are coming up with e-commerce verticals. This is enabling Internet-based companies like Facebook (FB-Free Report) to tap new opportunities and expand their total addressable market.

Accelerated 5G Deployment: Key Catalyst

Moreover, improving Internet speed courtesy of accelerated deployment of 5G is a key catalyst.

Higher Internet speed, which means low latency, is quintessential for the smooth functioning of IoT devices. Per Rysavy Research, the rollout of 5G will play a significant role in widespread usage and adoption of machine-to-machine systems in 2020 and beyond.

Notably, Goldman Sachs now expects 120 million 5G devices to be deployed in 2020, significantly up from its previous expectation of 50 million.

Moreover, rapid deployment of 5G in 2020 is expected to boost growth in digital advertising, rapid adoption of online payment methods, AR/VR, cloud-based gaming, autonomous vehicle technology, smart cities, wearable computing and online delivery services.

Making the Right Choice

The aforementioned factors are expected to help Internet stocks gain in 2020.

However, stock picking is a difficult task and it is here that the Zacks Stock Screener can come in handy.

Here we pick five Internet stocks that have a favorable combination of a VGM Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Per Zacks’ proprietary methodology, stocks with this favorable combination offer good investment opportunities.

Moreover, these stocks have a market cap of more than $1 billion.

5 Key Picks

Beijing-based Momo (MOMO-Free Report) sports a Zacks Rank #1 and has a VGM Score of A. This mobile-based social networking platform provider has a market cap of $7.33 billion.

The Zacks Consensus Estimate for 2020 earnings has increased 3.1% to $3.37 per share in the past 60 days.

Momo Inc. Price and Consensus



Covetrus (CVET-Free Report) has a Zacks Rank #2 and a VGM Score of A. This New York- based company provides animal-health technology and services.

Covetrus has a market cap of $1.50 billion. The Zacks Consensus Estimate for 2020 earnings has moved north by 25.5% to 69 cents over the past 60 days.

Covetrus, Inc. Price and Consensus



Olathe, KS-based NIC (EGOV-Free Report) has a Zacks Rank #2 and a VGM Score of B.

The company provides digital government services aimed at enabling governments to leverage the Internet in order to reduce costs and offer advanced services to businesses and citizens. NIC has a market cap of $1.51 billion.

The Zacks Consensus Estimate for 2020 earnings has increased 2.4% to 87 cents per share in the past 60 days.

NIC Inc. Price and Consensus



Guangzhou-based Vipshop Holdings (VIPS-Free Report) is an online discount retailer for brands. The company offers branded products to consumers in China through flash sales on vipshop.com website.

This $9.75 billion-worth company also has a Zacks Rank #2 and a VGM Score of B.

Notably, over the past 60 days, the consensus mark for 2020 earnings has moved upward by 21% to $1.21 per share.

Vipshop Holdings Limited Price and Consensus



San Mateo, CA-based Zuora (ZUO-Free Report) provides cloud-based software on a subscription basis. The company has a Zacks Rank #2 and a VGM Score of B.

The Zacks Consensus Estimate for fiscal 2021 loss has narrowed from 21 cents to 19 cents per share in the past 60 days for this $1.62 billion-worth company.

Zuora, Inc. Price and Consensus



Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2020?

These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.

2019年对于互联网股票来说是异常的,从Invesco NASDAQ互联网ETF(PNQI)强劲的年度业绩中可以看出,该交易所交易基金(PNQI)的涨幅为29.5%,而标准普尔500指数ETF(SPDR S&P 500 ETF)的增长率为28.5%。






根据思科的视觉网络指数,到2022年,每年的全球IP流量将达到4.8 zettabytes(ZB)。2017年,全球IP流量的年运行速率为每年1.5 ZB。总体而言,2017年至2022年期间,IP流量的CAGR将达到26%。

据世界经济论坛(WorldEconomicForum)称,到2020年,整个数字世界有望达到44 ZB。

















总部位于北京的莫莫(MOMOO-Free Report)拥有ZackRank#1,VGM得分为A,这家移动社交平台提供商的市值为73.3亿美元。





Covetrus(CVeT-Free Report)拥有ZackRank#2和VGM评分A。这家总部位于纽约的公司提供动物保健技术和服务。





Olathe,基于KS的NIC(eGov-Free Report)拥有ZackRank#2和VGM评分B。












SanMateo,基于CA的Zuora(Zuo-Free Report)在订阅的基础上提供基于云的软件.该公司拥有ZackRank#2和VGM评分B。