One commonality of all of these companies is their significant dependence on technology. To this end, it’s generally been a solid year for many tech stocks. Therefore, though each of these businesses has been performing very well, investors shouldn’t attribute all of their gains to their respective underlying business performance. Intuit, Shopify, Salesforce, and Square’s gains, for instance, seem to be a part of a broader run-up of software-as-a-service stocks.
Further, it’s important to keep in mind that past outperformance certainly doesn’t guarantee more of the same in the future. That said, it often makes sense to buy companies that are firing on all cylinders — so this list of stocks may be worth a closer look.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool’s board of directors. LinkedIn is owned by Microsoft. Daniel Sparks owns shares of Square. The Motley Fool owns shares of and recommends Amazon, Intuit, Netflix, Salesforce.com, Shopify, Square, The Trade Desk, and Twitter. The Motley Fool recommends Teladoc. The Motley Fool has a disclosure policy.