As FAANGs fall, these small-cap tech stocks extend gains – MarketWatch

This post was originally published on this site

Large-cap technology stocks, led by so-called FAANG shares, extended Friday’s decline after rising 22% as a group this year through Thursday.

The FAANG stocks are:

• Facebook Inc. FB, -1.10% was down 3.3% on Friday after returning 30% in 2017 through Thursday.

• Amazon.com Inc. AMZN, -0.88% was down 3.2% Friday after returning 30% in 2017.

• Apple Inc. AAPL, -2.58%  was down 3.9% Friday after returning 30% in 2017.

• Netflix Inc. NFLX, -4.01% was down 4.7% Friday after returning 28% in 2017.

• Alphabet Inc., which owns Google. The company’s Class A GOOGL, -1.20%  shares dropped 3.4% Friday after returning 22% in 2017. Class C GOOG, -1.00%  shares declined 3.4% Friday after returning 23% in 2017.

Technically, Amazon and Netflix aren’t included in the S&P 500 SPX, -0.32%  tech sector, as they are considered consumer-discretionary companies. But if they were included, the market value of the FAANG stocks together would make up 42% of the tech sector’s market value.

Maybe it’s not surprising to see the biggest names in tech pull back after such an amazing run. But something else went on last week, as you can see from this five-day chart:

FactSet

Small-cap tech stocks bucked the trend last week.

The S&P 400 Mid-Cap Index’s MID, -0.07%  tech sector fell pretty much in line with large-cap tech stocks last week, but the S&P Small-Cap 600 SML, -0.15%  Index’s tech sector actually rose slightly.

Here are the tech stocks in the S&P Small-Cap 600 Index that extended their year-to-date gains the most Friday:

Company Ticker Industry Total return – 2017 through June 8 Price increase – June 9
Comtech Telecommunications Corp. CMTL, +0.91% Telecom. Equipment 56% 2.2%
Kopin Corp. KOPN, -4.82% Electronic Components 39% 1.8%
QuinStreet Inc. QNST, +0.74% Advertising/ Marketing Services 7% 1.3%
Sykes Enterprises Inc. SYKE, +0.48% Data Processing Services 16% 1.2%
Stamps.com Inc. STMP, -3.58% Internet Software/ Services 28% 1.2%
CTS Corp. CTS, -3.08%   Electronic Components 2% 1.1%
Electronics For Imaging Inc. EFII, +0.94% Computer Peripherals 10% 0.8%
Badger Meter Inc. BMI, -0.36% Electronic Equipment/ Instruments 12% 0.7%
Itron Inc. ITRI, -1.90% Electronic Equipment/ Instruments 13% 0.5%
OSI Systems Inc. OSIS, -1.18% Electronic Equipment/ Instruments 4% 0.3%
Source: FactSet

You can click on the tickers for more information, including news, financial reports and other company filings.

Here’s a quick summary of how sell-side analysts think about the group:

Company Share ‘buy’ ratings Share neutral ratings Share ‘sell’ ratings Closing price – June 9 Consensus price target Implied 12-month upside potential
Comtech Telecom. Corp. 67% 33% 0% $18.18 $19.92 10%
Kopin Corp. 0% 100% 0% $3.94 $3.70 -6%
QuinStreet Inc. 50% 0% 50% $4.03 $4.25 5%
Sykes Enterprises Inc. 50% 50% 0% $33.46 $35.80 7%
Stamps.com Inc. 100% 0% 0% $146.50 $170.50 16%
CTS Corp. 0% 100% 0% $22.70 $23.00 1%
Electronics For Imaging Inc. 82% 18% 0% $48.08 $52.33 9%
Badger Meter Inc. 20% 80% 0% $41.20 $42.33 3%
Itron Inc. 67% 33% 0% $71.10 $70.83 0%
OSI Systems Inc. 100% 0% 0% $78.92 $88.50 12%
Source: FactSet

As always, if you see any companies that interest you, the next step is to do your own research, hopefully with the assistance of your broker or investment adviser, to form your own opinion about how well these companies will perform over the next several years.

More from MarketWatch

More Coverage