From Ashes to Apexes: Three Tech Survivors Shattering Two-Decade Records

The markets have a peculiar rhythm—periods of exuberance followed by harsh corrections, then unexpected resurrections. Today’s market breadth tells a cautionary tale reminiscent of yesteryear. Currently, a mere 39.1% of S&P 500 constituents trade above their 50-day moving averages, while the Nasdaq’s situation appears even more dire at just 17.5%. This stands in sharp contrast to the dot-com era’s strength, when widespread bullish sentiment lifted almost all ships. Two decades ago, the technology sector experienced a speculative frenzy—companies achieved astronomical valuations disconnected from economic reality. What followed was inevitable: a multi-year bloodbath that permanently eliminated many market participants.

Yet the narrative has taken an intriguing turn. A handful of survivors from that bygone era—enterprises that demonstrated genuine business models beneath the hype—have not only recovered but established fresh record highs. These firms adapted, innovated, and weathered multiple economic cycles. They didn’t just survive the dotcom crash; they emerged as industry titans capable of generating consistent revenue growth and shareholder returns.

The Chicago-Based Pioneer: Motorola Solutions Inc. (MSI)

Among these tech-era veterans stands Motorola Solutions, the Illinois-based communications infrastructure company headquartered in Chicago. MSI operates across government and enterprise segments, supplying radio systems, video security platforms, and advanced data capture technologies to clients worldwide. The chicago-based company’s management team remains optimistic about continued momentum in their core verticals.

What distinguishes MSI’s track record is remarkable consistency. For seven consecutive years, the company has beaten quarterly earnings expectations. The latest quarter delivered a +12.89% surprise, with EPS of $2.19 reported in November. The stock’s 53.6% annual ascent with minimal turbulence demonstrates institutional confidence—even as major indices experienced volatility, MSI forged successive all-time highs.

Consensus estimates project 2021 EPS of $9.04, implying 17.56% year-over-year expansion. MSI’s ability to maintain an uptrend while broader market breadth weakens signals genuine underlying strength. The chicago-based communications firm released earnings on February 3rd, continuing a pattern of beating expectations.

Qualcomm Inc. (QCOM): 5G Momentum and Estimate Acceleration

Qualcomm represents another resurrection story. The San Diego semiconductor and licensing powerhouse maintained its 50-year legacy through disciplined innovation in wireless technologies. QCOM’s business model—encompassing engineering, semiconductor design (QCT), and IP licensing (QTL)—provides multiple revenue streams and competitive moats.

The current growth narrative centers on 5G proliferation and accelerating cloud infrastructure demands. QCOM has delivered earnings surprises in 28 consecutive quarters, averaging +11.23% beats. Most recently, the company reported November EPS of $2.24, representing an +8.74% positive deviation from consensus.

What excites investors is the trajectory of estimate revisions. Analysts elevated 2021 earnings projections by +14.04% and 2022 estimates by +17.62% within the past 60 days—indicating an improving visibility into future cash generation. The consensus 2021 EPS target reached $10.48, translating to 22.72% annual growth. Applying the Zacks Earnings Surprise Prediction model (which combines positive estimate revisions with fundamental momentum indicators), QCOM’s +0.87% ESP combined with its market position suggests a >70% probability of continued upside surprises. The company reported quarterly results on February 2nd.

Clearfield Inc. (CLFD): The Fiber Optic Dark Horse

Perhaps the most dramatic performer among the three is Clearfield, the Minneapolis-based fiber optic infrastructure specialist. CLFD manufactures and distributes FieldSmart fiber management platforms—critical backbone technology for telecommunications buildout. The company deployed millions of fiber ports annually, positioning itself at the nexus of broadband expansion.

CLFD’s metrics are staggering. The stock gained nearly 200% in a single year, establishing fresh all-time highs amid broader market softness—a hallmark of genuine competitive advantage. The company exceeded earnings estimates for six consecutive quarters, averaging a remarkable +50.77% surprise rate. November’s reported EPS of $0.53 crushed expectations by +29.27%.

The earnings estimate revisions tell a compelling story of improving operational execution. Analysts increased 2021 EPS projections by +8.82% over the preceding 60 days. Current-year consensus EPS sits at $1.85, implying 25.85% growth versus the prior year. CLFD reported quarterly earnings on January 27th, maintaining its cadence of positive surprises.

Market Implications: Breadth, Selectivity, and Long-Term Thinking

The contrast between today’s weak breadth and the exceptional performance of these three companies illuminates an important market truth: in periods of selectivity, fundamental quality compounds. Unlike the speculative dot-com bubble—where breadth and valuation expansion drove returns—today’s winners demonstrate pricing power, earnings growth, and consistent execution.

The Nasdaq Composite’s historical pattern reveals that extended periods of underperformance relative to large-cap indexes rarely persist. While current breadth indicators suggest caution, history indicates that such environments eventually resolve in favor of emerging quality franchises. The three companies highlighted above—two of which carry Zacks #2 Buy rankings—exemplify the type of enterprises capable of navigating multiple economic regimes.

Investing requires distinguishing between survivable cyclical downturns and structural obsolescence. The tech bubble differentiated these categories through time; today’s markets are already making that distinction through selective outperformance. Identifying companies with positive earnings momentum, resilient business models, and a demonstrated ability to reward shareholders across market cycles remains the investor’s primary task. These three stocks illustrate that thesis in action.