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Top Stock Picks for Week of September 12, 2022

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Digi International Inc. (DGII - Free Report) is a leading global provider of business and mission-critical Internet of Things (IoT) products and services. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. DGII is quite a good fit in this regard, gaining by double digits over this period. Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. Its Average Broker Recommendation of #1 (Strong Buy), indicates that the brokerage community is highly optimistic about the stock's near-term price performance.  While the historical EPS growth rate for Digi International is in double digits, investors should actually focus on the projected growth. The company's EPS is expected to grow by triple digits this year, crushing the industry average.

Pure Storage Inc. (PSTG - Free Report) provides software-defined all-flash solutions that are uniquely fast and cloud-capable for customers.Pure Storage’s Q2 performance was driven by momentum in subscription services’ revenues, as well as revenue growth in both domestic and international segments. Subscription services’ revenues is benefitting from robust adoption of Evergreen subscription services and synergies from Portworx acquisition. Strength in FlashArray and FlashBlade businesses as well as strong growth prospects in the data-driven markets of Artificial Intelligence (AI) and machine learning (ML) bode well. The company provided upbeat outlook for fiscal 2023 revenues. Shares of the company have outperformed the industry year to date. Pure Storage has a strong balance sheet with ample liquidity position. 


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