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Finding the Best Top-Ranked Stocks to Buy for November and Beyond
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Some buyers finally stepped up on Monday after a wave of selling. Stocks were mixed through morning trading on Tuesday, with Wall Street possibly poised to sit on its hands until the Fed makes its official rate decision Wednesday and Jay Powell speaks.
Wall Street is nearly 100% sure that the Fed will pause on Wednesday and remain in ‘wait-and-see mode.’ Therefore, a lot could depend on what Powell says and if he continues to lean hawkish or offers a slight hint of a dovishness to come.
Clearly, many investors have sold stocks recently and are taking advantage of higher interest rates to park their money. But investors with long-term horizons are wise to stay exposed to the stock market since no one can call a bottom or a top in real time. Plus, let’s remember that the S&P 500 is still up over 9% YTD.
On top of that, there are plenty of stocks that are outperforming the market and boast solid fundamentals, including improving earnings outlooks.
With this in mind, investors can utilize the Filtered Zacks Rank 5 Stock Screen to help find potentially winning stocks to buy heading into November.
Zacks Rank #1 (Strong Buy) stocks outperform the market in both good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time. Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.
Parameters
Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.
• Zacks Rank equal to 1
Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.
• % Change (Q1) Est. over 4 Weeks greater than 0
Positive current quarter estimate revisions over the last four weeks.
• % Broker Rating Change over 4 Week equal to Top # 5
Top 5 stocks with the best average broker rating changes over the last four weeks.
This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.
Here is one of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…
Mr. Cooper Group is one of the larger home loan servicers and mortgage providers in the U.S. COOP boasts that it is the largest non-bank servicer in the country and a top 30 originator in the U.S. The firm operates under two brands, Mr. Cooper and Xome. Mr. Cooper is a home loan servicer, while Xome provides “technology and data enhanced solutions” to homebuyers, home sellers, real estate agents, and mortgage companies.
Mr. Cooper Group’s revenue soared in 2020 and 2021 during the Covid housing boom. Despite rising mortgage rates, the demographic trends remain firmly on Mr. Cooper Group’s side. Demand from Millennial buyers, the largest generation in American history, is growing, while Baby Boomers are retiring and moving.
COOP crushed our Q3 earnings estimate by 61% on October 25 ($2.79 a share vs. $1.73), marking its fourth-straight beat and second huge outperformance in a row. “Led by record servicing results and solid earnings in originations despite headwinds from rising rates,” Vice Chairman and President Chris Marshall said in prepared remarks. “This drove our operating returns back into our 12-20% target range, distinguishing us from our competitors.”
Image Source: Zacks Investment Research
Mr. Cooper Group boosted its outlook, with its improved EPS estimates helping it land its Zacks Rank #1 (Strong Buy). Zacks estimates call for the company to post 225% adjusted earnings growth this year from $2.20 a share to $7.49 and then expand its bottom line by another 14% next year. The company is also expected to return to revenue growth in 2024.
COOP shares have soared 160% in the last three years vs. the S&P 500’s 26% and the Zacks Finance sector’s 23%. Mr. Cooper Group stock has also managed to climb 40% in 2023. And its recent post-earnings surge helped it retake its 50-day moving average. Despite its outperformance, COOP trades at a 45% discount the Finance sector at 6.9X forward 12-month earnings.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Image: Bigstock
Finding the Best Top-Ranked Stocks to Buy for November and Beyond
Some buyers finally stepped up on Monday after a wave of selling. Stocks were mixed through morning trading on Tuesday, with Wall Street possibly poised to sit on its hands until the Fed makes its official rate decision Wednesday and Jay Powell speaks.
Wall Street is nearly 100% sure that the Fed will pause on Wednesday and remain in ‘wait-and-see mode.’ Therefore, a lot could depend on what Powell says and if he continues to lean hawkish or offers a slight hint of a dovishness to come.
Clearly, many investors have sold stocks recently and are taking advantage of higher interest rates to park their money. But investors with long-term horizons are wise to stay exposed to the stock market since no one can call a bottom or a top in real time. Plus, let’s remember that the S&P 500 is still up over 9% YTD.
On top of that, there are plenty of stocks that are outperforming the market and boast solid fundamentals, including improving earnings outlooks.
With this in mind, investors can utilize the Filtered Zacks Rank 5 Stock Screen to help find potentially winning stocks to buy heading into November.
Zacks Rank #1 (Strong Buy) stocks outperform the market in both good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time. Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.
Parameters
Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.
• Zacks Rank equal to 1
Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.
• % Change (Q1) Est. over 4 Weeks greater than 0
Positive current quarter estimate revisions over the last four weeks.
• % Broker Rating Change over 4 Week equal to Top # 5
Top 5 stocks with the best average broker rating changes over the last four weeks.
This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.
Here is one of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…
Mr. Cooper Group ((COOP - Free Report) )
Mr. Cooper Group is one of the larger home loan servicers and mortgage providers in the U.S. COOP boasts that it is the largest non-bank servicer in the country and a top 30 originator in the U.S. The firm operates under two brands, Mr. Cooper and Xome. Mr. Cooper is a home loan servicer, while Xome provides “technology and data enhanced solutions” to homebuyers, home sellers, real estate agents, and mortgage companies.
Mr. Cooper Group’s revenue soared in 2020 and 2021 during the Covid housing boom. Despite rising mortgage rates, the demographic trends remain firmly on Mr. Cooper Group’s side. Demand from Millennial buyers, the largest generation in American history, is growing, while Baby Boomers are retiring and moving.
COOP crushed our Q3 earnings estimate by 61% on October 25 ($2.79 a share vs. $1.73), marking its fourth-straight beat and second huge outperformance in a row. “Led by record servicing results and solid earnings in originations despite headwinds from rising rates,” Vice Chairman and President Chris Marshall said in prepared remarks. “This drove our operating returns back into our 12-20% target range, distinguishing us from our competitors.”
Image Source: Zacks Investment Research
Mr. Cooper Group boosted its outlook, with its improved EPS estimates helping it land its Zacks Rank #1 (Strong Buy). Zacks estimates call for the company to post 225% adjusted earnings growth this year from $2.20 a share to $7.49 and then expand its bottom line by another 14% next year. The company is also expected to return to revenue growth in 2024.
COOP shares have soared 160% in the last three years vs. the S&P 500’s 26% and the Zacks Finance sector’s 23%. Mr. Cooper Group stock has also managed to climb 40% in 2023. And its recent post-earnings surge helped it retake its 50-day moving average. Despite its outperformance, COOP trades at a 45% discount the Finance sector at 6.9X forward 12-month earnings.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Click here to sign up for a free trial to the Research Wizard today.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance/