On Monday, we talked about how the Technology sector’s weight in the S&P 500, while already high, continues to expand.  Earlier today, we highlighted the strength in the semiconductor group, which has helped to contribute to the Tech sector’s gains.  Just as impressive as semis, though, has been the strength in stocks from the Software & Services Industry Group.  Unlike the semis, the Software and Services Industry Group is trading at new 52-week highs again, rallying 14% on the year.

Mentioning that the Software and Services Industry Group is up 14% on the year doesn’t even do the group justice.  That’s because some of the smaller, lesser-known names in the group have really been on fire this year.  The table below lists the top performing stocks in the Russell 3000 Software and Services Industry Group so far in 2018.  Of the 164 stocks in the group, 25 of them are up at least 50% YTD, and two of them have more than doubled. Leading the way higher, shares of Twilio (TWLO) are up 142% YTD and have seen a roller coaster ride over the last couple of years.  After its IPO in the summer of 2016, the stock rallied from $25 all the way up to $70, only to give it all back and then some as it dropped back below $25. Since its most recent low in early February, though, the stock has more than doubled in less than four months!

Looking through the list of names below, there are certainly a handful like Twitter (TWTR), GrubHub (GRUB), etc. that you may have heard of, but the majority of these names are probably foreign to most investors.  That said, while they may not be mainstream names, they certainly aren’t microcaps.  Of the 25 names listed, the average market cap is actually $4 billion for a combined market cap of $100 billion.  That’s no small change!

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