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How to Find Market Beating Growth Stocks in 2017

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Both Wall Street and investors look to fast growing stocks to send the market higher during a bull run, and our current low-interest rate landscape should allow for high-growth stocks to prosper.

But how do you find solid growth stocks in this market climate? An easy way to navigate through the hundreds of options is by utilizing high quality stock screeners. Screening helps investors narrow down companies based on the essential ability to meet every condition important to the user. Any stock that misses even one of the requirements will be filtered out.

This lets investors easily choose ideal-for-them metrics. Screens are effective because they only keep the best in, helping you select criteria that you believe will lead to an increase in price. It isn’t always easy to create a successful screen, but with Zacks Premium Screens, investors have reaped profits time and time again. Our predefined criteria are carefully chosen to capture stocks with the best opportunity to beat the market.

Today, I’ve found three growth stocks using one of our most popular premium screens, Market Beating Growth Stocks. Some of the metrics of this screen include:

  • Zacks Rank #1 (Strong Buy)
  • Zacks Growth Style Score = A
  • This Year’s Estimated EPS Growth (F1/F0) >= 20%
  • Last Close >= 5
  • Average 20-Day Volume >= 100,000

Let’s see what the screen has discovered this time around.

Dave & Buster’s

Along with having a great stock ticker, Dave & Buster’s Entertainment (PLAY - Free Report) is a fast-growing company in the restaurant industry, cleverly combining dining, drinking, and gaming all into one. The stock has a Zacks Rank #1 (Strong Buy), as well as a Zacks Growth Style Score of ‘A.’ PLAY last closed out at $55.02 per share, and has an average 20-day trading volume of more than 514,793.

As for growth estimates, Dave & Buster’s looks golden. The company’s EPS is expected to gain almost 35% for 2017, with six positive estimate revisions in the last 60 days compared to none lower. Dave & Buster’s has a history of stellar earnings growth, and with an average surprise of 37.81%, don’t be surprised when PLAY continues to soar.

AK Steel

American steel giant AK Steel Corp. is known for producing flat-rolled carbon, stainless, and electrical steel products, as well as carbon and stainless tubular steel products for the automotive, appliance, construction, and manufacturing markets. AKS is a #1 (Strong Buy) on the Zacks Rank, with a Zacks Growth Style Score of ‘A.’ The stocks last closed out at $9.71 per share, and has an average 20-day trading volume of 15,155,222.

AK Steel has grown tremendously since its IPO back in 1994, and it looks like it has no plans of slowing down. The company expects EPS growth of over 209% this year, with three positive estimate revisions in the last 60 days compared to three negative revisions in the same time frame. AK Steel has beaten earnings in the last four consecutive quarters, and has an average surprise of just over +170%.

Applied Materials

Likely the lesser known company on this list, Applied Materials Inc. (AMAT - Free Report) manufactures equipment and software for semiconductor chips for electronics, solar products, and flat panel displays for computers, smartphones, and televisions. AMAT is a #1 (Strong Buy) on the Zacks Rank, and has a Zacks Growth Style Score of ‘A.’ Its last closing price was $33.79, while its average 20-day trading volume is around 7,242,992 shares.

Looking ahead, 2017 should be a good year for Applied Materials. The company expects estimated EPS growth roughly 38.75% for this year, with 10 positive estimate revisions compared to none lower. Sales are estimated to gain 17.6% in the same time frame. AMAT has beaten earnings expectations for the past four consecutive quarters, and has a humble average surprise of +4.54%.

Bottom Line

While investing in growth stocks can pose a risky bet at times, especially in comparison to value or momentum stocks, they traditionally have the highest potential for the greatest returns. The three stocks detailed above are expected to have a great 2017. Dave & Buster’s, AK Steel, and Applied Materials all operate in fundamentally strong industries, and each company boasts unique characteristics to help it stay ahead of the competition.  

To begin using Zacks Premium Screens to discover more stock picks based on metrics most important to you—plus, gain access to the Zacks #1 Rank List, +1,000 Equity Research Reports, Earnings Surprise Filter, the award-winning Focus List portfolio of 50-longer-term stocks and much more—start your 30-day free trial to Zacks Premium now.


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