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The flat Monday helped the S&P 500 and the Nasdaq remain above their 21-day moving averages. Both major indexes were down slightly through morning trading on Tuesday as Wall Street holds its breath ahead of the March CPI release on Wednesday morning.
The calm start to the week came despite headlines focused on the possibility of the Fed remaining more hawkish in 2024 than Wall Street hopes. The market is prepared for higher for longer, using U.S. Treasury yields as an indicator.
Wall Street and businesses have adapted well to the new rate regime. Looking ahead, the Fed appears set to slowly lower rates starting in the back half of 2024. A measured dovish transition is preferable to a rapid slash because it means the U.S. economy remains sturdy.
Given this backdrop, investors likely want to remain exposed to the stock market throughout 2024. Today we explore how investors can use a Zacks screen to help find some of the best Zacks Rank #1 (Strong Buy) stocks to buy in April and beyond.
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…
Central Garden & Pet is one of the top players in the wider pet and garden industries, with over “65 high-quality brands centered around the home helping lawns grow greener, gardens bloom bigger, pets live healthier, and communities grow stronger.” Central Garden & Pet brands include Amdro, Cadet, Four Paws, Nylabone, Pennington, and tons of others. CENTA has grown solidly over the years and its Consumer Products – Discretionary industry currently sits in the top 22% of over 250 Zacks industries.
Central Garden & Pet crushed our Q1 FY24 EPS estimate and its bottom-line outlook improved significantly since its release. Central Garden & Pet’s FY24 and FY25 consensus estimates have surged 10% in the last several months to help it land its Zacks Rank #1 (Strong Buy). The company’s adjusted earnings are projected to surge by 11% and 10%, respectively over this stretch.
Image Source: Zacks Investment Research
CENTA stock has climbed 450% in the last 10 years vs. its sector’s 25% climb. The stock has cooled off the last three years, trading around 20% below its 2021 peaks.
Central Garden & Pet shares are on the comeback trail, up 15% in the past 12 months to retake its 200-week and 50-week moving averages. CENTA trades at a 35% discount to its highs, 15% below its sector, and at its five-year median of 14.8X 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
Find Top-Ranked Stocks to Buy in April and Beyond
The flat Monday helped the S&P 500 and the Nasdaq remain above their 21-day moving averages. Both major indexes were down slightly through morning trading on Tuesday as Wall Street holds its breath ahead of the March CPI release on Wednesday morning.
The calm start to the week came despite headlines focused on the possibility of the Fed remaining more hawkish in 2024 than Wall Street hopes. The market is prepared for higher for longer, using U.S. Treasury yields as an indicator.
Wall Street and businesses have adapted well to the new rate regime. Looking ahead, the Fed appears set to slowly lower rates starting in the back half of 2024. A measured dovish transition is preferable to a rapid slash because it means the U.S. economy remains sturdy.
Given this backdrop, investors likely want to remain exposed to the stock market throughout 2024. Today we explore how investors can use a Zacks screen to help find some of the best Zacks Rank #1 (Strong Buy) stocks to buy in April and beyond.
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…
Central Garden & Pet ((CENTA - Free Report) )
Central Garden & Pet is one of the top players in the wider pet and garden industries, with over “65 high-quality brands centered around the home helping lawns grow greener, gardens bloom bigger, pets live healthier, and communities grow stronger.” Central Garden & Pet brands include Amdro, Cadet, Four Paws, Nylabone, Pennington, and tons of others. CENTA has grown solidly over the years and its Consumer Products – Discretionary industry currently sits in the top 22% of over 250 Zacks industries.
Central Garden & Pet crushed our Q1 FY24 EPS estimate and its bottom-line outlook improved significantly since its release. Central Garden & Pet’s FY24 and FY25 consensus estimates have surged 10% in the last several months to help it land its Zacks Rank #1 (Strong Buy). The company’s adjusted earnings are projected to surge by 11% and 10%, respectively over this stretch.
Image Source: Zacks Investment Research
CENTA stock has climbed 450% in the last 10 years vs. its sector’s 25% climb. The stock has cooled off the last three years, trading around 20% below its 2021 peaks.
Central Garden & Pet shares are on the comeback trail, up 15% in the past 12 months to retake its 200-week and 50-week moving averages. CENTA trades at a 35% discount to its highs, 15% below its sector, and at its five-year median of 14.8X 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: www.zacks.com/performance_disclosure