15 stock-market winners that index-fund investors missed in 2020

The COVID-19 economy has been brutal for millions of people who have been directly affected, through illness and loss of family members and friends, but also though lost jobs, destroyed businesses and disrupted careers. The stock market has been a different story: Unprecedented stimulus efforts of the federal government and Federal Reserve have sent it soaring.

Some of the best-known stock-market winners of 2020 are companies with innovative technology and services that businesses and consumers have relied on for remote access. Yet many aren’t yet included in the S&P 500 Index SPX, +0.14%, the part of the market tracked by most of the money invested in low-cost index funds, including the SPDR S&P 500 ETF SPY, +0.12%. Others, while part of the Nasdaq Composite Index COMP, -0.06%, aren’t yet included in the Nasdaq-100 Index NDX, +0.29%, which is tracked by the Invesco QQQ Trust ETF QQQ, +0.27%  

SPY has risen 18% while QQQ has surged an impressive 48%, both through Dec. 28.

This list doesn’t include Tesla Inc. TSLA, +0.05%, which was added to the S&P 500 on Dec. 21; the electric car maker’s shares had soared 731% by then.

Click here for more about Tesla and lists of the best-performing stocks of 2020 from among the S&P 500, Dow Jones Industrial Average DJIA, +0.10%  and Nasdaq-100 Index NDX, +0.29%.

Here are 15 stocks that have soared this year but aren’t included in the broad S&P indexes or the Nasdaq-100:

Company Ticker  Industry  Price change – 2020 Market capitalization ($mil)
 Cloudflare Inc. Class A  NET, +1.72%  Information Technology Services  398% 19,878
 CrowdStrike Holdings Inc. Class A  CRWD, -1.59%  Packaged Software  343% 41,632
 Zscaler Inc.  ZS, -1.73%    Software  341% 27,546
 Pinterest Inc. Class A  PINS, +0.80%  Internet Software/Services  281% 36,291
 Twilio Inc. Class A  TWLO, -0.94%  Software  269% 50,898
 Square Inc. Class A  SQ, -4.39%  Information Technology Services  265% 87,615
 Trade Desk Inc. Class A  TTD, -1.89%  Advertising/Marketing Services  259% 39,087
 Zillow Group Inc. Class C  Z, -2.38%  Information Technology Services  202% 22,999
 Carvana Co. Class A  CVNA, -2.19%  Specialty Stores  198% 19,389
 Wayfair Inc. Class A  W, -1.76%  Internet Retail  180% 18,408
 Roku Inc. Class A  ROKU, -1.09%  Electronics/Appliances  167% 38,907
 Teladoc Health Inc.  TDOC, +0.51%  Hospital/Nursing Management  148% 30,145
 RingCentral Inc. Class A  RNG, +0.05%  Software  136% 31,613
 Spotify Technology SA  SPOT, -0.63%  Internet Software/Services  120% 61,422
 Veeva Systems Inc. Class A  VEEV, +0.49%  Software  104% 39,218
Source: FactSet

Scroll the table to see all the data.

You can click on the tickers for more about each company, including profiles, news coverage, price ratios and charts.

Here’s a summary of Wall Street analysts’ opinions about these stocks after such remarkable gains:

Company Ticker Share ‘buy’ ratings Share neutral ratings Share ‘sell’ ratings Closing Price Consensus price target Implied 12-month upside potential
 Cloudflare Inc. Class A  NET, +1.72% 81% 19% 0% $84.98 $72.60 -15%
 CrowdStrike Holdings Inc. Class A  CRWD, -1.59% 75% 20% 5% $221.12 $188.26 -15%
 Zscaler Inc.  ZS, -1.73% 52% 44% 4% $205.27 $187.55 -9%
 Pinterest Inc. Class A  PINS, +0.80% 64% 32% 4% $71.04 $69.46 -2%
 Twilio Inc. Class A  TWLO, -0.94% 78% 15% 7% $362.88 $366.70 1%
 Square Inc. Class A  SQ, -4.39% 57% 34% 9% $228.28 $217.66 -5%
 Trade Desk Inc. Class A  TTD, -1.89% 42% 53% 5% $931.77 $751.44 -19%
 Zillow Group Inc. Class C  Z, -2.38% 48% 39% 13% $138.64 $130.20 -6%
 Carvana Co. Class A  CVNA, -2.19% 62% 38% 0% $274.71 $241.95 -12%
 Wayfair Inc. Class A  W, -1.76% 45% 39% 16% $252.82 $304.08 20%
 Roku Inc. Class A  ROKU, -1.09% 59% 33% 8% $356.99 $275.67 -23%
 Teladoc Health Inc.  TDOC, +0.51% 60% 40% 0% $207.95 $242.78 17%
 RingCentral Inc. Class A  RNG, +0.05% 96% 0% 4% $398.51 $364.13 -9%
 Spotify Technology SA  SPOT, -0.63% 47% 33% 20% $328.39 $285.78 -13%
 Veeva Systems Inc. Class A  VEEV, +0.49% 65% 26% 9% $287.58 $308.43 7%
Source: FactSet

Analysts have majority “buy” or equivalent ratings on 11 of these 15 stocks; however, most of the stock have gotten ahead of the consensus price targets. These price targets are usually for 12 months, so it is clear the analysts are confident for many as longer-term plays, despite valuations that appear lofty for the short term.

Don’t miss:20 of analysts’ favorite large-cap stocks for 2021, including GM, Facebook and Salesforce