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S&P 500 at 5-Month High: 5 Stocks Up More Than 45%
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Though Trump’s protectionist stance and the resultant trade tension has been playing foul on the stock market, American stocks have been showing momentum lately with the S&P 500 index climbing to the highest level in more than five months. The impressive run has been credited to robust earnings and strengthening economy.
This is especially true as Q2 earnings from about 10% companies on the S&P 500 that have reported so far are up 23% on 10% higher revenues. The proportion of these companies beating EPS and revenue estimates is tracking above other recent periods. As a whole, earnings for the S&P 500 index are expected to grow 20.4% from the same period last year on 8.3% higher revenues. This would be the third consecutive quarter of double-digit earnings growth, a trend that is currently expected to continue in the second half of the year. A strong economy and historic tax cuts will continue to drive earnings higher.
Additionally, the Fed Chairman’s testimony, which reaffirmed the central bank’s plans to gradually increase interest rates, added to the strength. Powell painted an optimistic view of the economy, citing that America is expanding at a faster pace. Robust job gains, rise in income and optimism among households have lifted consumer spending in recent months and will likely continue doing so. Unemployment rate is below 4% and inflation is running above the Fed’s 2% target for the first time in several years.
All these developments are strong enough to justify continued interest rate increases. The Fed has raised rates twice this year in quarter-point increments and is expected to implement two more lift-offs by the end of this year.
While there are winners from various corners of the space, we have highlighted stocks that have shown strong momentum over the past five months and have a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy). Below we have presented a bunch of those that have easily led the way on the S&P 500 index in the past five months, gaining more than 45%, and will continue to outperform heading into the earnings season. You can see the complete list of today’s Zacks #1 Rank stocks here.
ABIOMED Inc. – Up 61.2%
With a market cap of $19.08 billion, ABIOMED is a provider of mechanical circulatory support devices and offers a continuum of care to heart failure patients. The stock saw positive earnings estimate revision of 27 cents for the year (ending March 2019) over the past three months with an expected earnings growth rate of 42.86%, much higher than the industry average growth of 24.97%. It has a Zacks Rank #2 and a VGM Score of C.
HollyFrontier Corporation – Up 54.3%
The company is engaged in refining petroleum, and produces and markets gasoline, diesel, jet fuel, asphalt, heavy products and specialty lubricant products. The Zacks Consensus Estimate for this year has moved up from $3.87 to $5.85 over the past three months, representing an earnings growth rate of 152.16%, much higher than the industry’s average growth of 45.54%. The stock has a market cap of $12.46 billion and carries a Zacks Rank #2. It flaunts a top VGM Score of A.
Chipotle Mexican Grill Inc. (CMG - Free Report) – Up 48.4%
It operates Chipotle Mexican Grill restaurants, which serve a focused menu of burritos, tacos, and burrito bowls (a burrito without the tortilla) and salads, made using fresh ingredients. The stock saw solid earnings estimate revision of 38 cents for this year over the past three months with an expected earnings growth rate of 30.76%, much higher than the industry’s average growth of 14.14%. CMG has a market cap of $12.64 billion and carries a Zacks Rank #2. Its VGM Score stands at B.
This is a global medical device company with industry-leading innovative products such as Invisalign clear aligners, iTero Intraoral scanners and OrthoCAD digital services. The stock saw solid earnings estimate revision of 24 cents for this year over the past three months and has an expected growth rate of 22.88% — higher than the industry’s average growth of 15.38%. It has a Zacks Rank #1 and VGM Score of C. Align Technology has a market cap of $29.7 billion.
This company provides software, systems, and services to manage and share data on-premises, and private and public clouds worldwide. With a market cap of $21.72 billion, the stock witnessed positive earnings estimate revision of nine cents for the year (ending April 2019) in the past three months. It has an estimated earnings growth of 17.03%, higher than the industry’s average growth of 16.85%. The stock has a Zacks Rank #1 and a VGM Score of B.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%. And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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S&P 500 at 5-Month High: 5 Stocks Up More Than 45%
Though Trump’s protectionist stance and the resultant trade tension has been playing foul on the stock market, American stocks have been showing momentum lately with the S&P 500 index climbing to the highest level in more than five months. The impressive run has been credited to robust earnings and strengthening economy.
This is especially true as Q2 earnings from about 10% companies on the S&P 500 that have reported so far are up 23% on 10% higher revenues. The proportion of these companies beating EPS and revenue estimates is tracking above other recent periods. As a whole, earnings for the S&P 500 index are expected to grow 20.4% from the same period last year on 8.3% higher revenues. This would be the third consecutive quarter of double-digit earnings growth, a trend that is currently expected to continue in the second half of the year. A strong economy and historic tax cuts will continue to drive earnings higher.
Additionally, the Fed Chairman’s testimony, which reaffirmed the central bank’s plans to gradually increase interest rates, added to the strength. Powell painted an optimistic view of the economy, citing that America is expanding at a faster pace. Robust job gains, rise in income and optimism among households have lifted consumer spending in recent months and will likely continue doing so. Unemployment rate is below 4% and inflation is running above the Fed’s 2% target for the first time in several years.
All these developments are strong enough to justify continued interest rate increases. The Fed has raised rates twice this year in quarter-point increments and is expected to implement two more lift-offs by the end of this year.
While there are winners from various corners of the space, we have highlighted stocks that have shown strong momentum over the past five months and have a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy). Below we have presented a bunch of those that have easily led the way on the S&P 500 index in the past five months, gaining more than 45%, and will continue to outperform heading into the earnings season. You can see the complete list of today’s Zacks #1 Rank stocks here.
ABIOMED Inc. – Up 61.2%
With a market cap of $19.08 billion, ABIOMED is a provider of mechanical circulatory support devices and offers a continuum of care to heart failure patients. The stock saw positive earnings estimate revision of 27 cents for the year (ending March 2019) over the past three months with an expected earnings growth rate of 42.86%, much higher than the industry average growth of 24.97%. It has a Zacks Rank #2 and a VGM Score of C.
HollyFrontier Corporation – Up 54.3%
The company is engaged in refining petroleum, and produces and markets gasoline, diesel, jet fuel, asphalt, heavy products and specialty lubricant products. The Zacks Consensus Estimate for this year has moved up from $3.87 to $5.85 over the past three months, representing an earnings growth rate of 152.16%, much higher than the industry’s average growth of 45.54%. The stock has a market cap of $12.46 billion and carries a Zacks Rank #2. It flaunts a top VGM Score of A.
Chipotle Mexican Grill Inc. (CMG - Free Report) – Up 48.4%
It operates Chipotle Mexican Grill restaurants, which serve a focused menu of burritos, tacos, and burrito bowls (a burrito without the tortilla) and salads, made using fresh ingredients. The stock saw solid earnings estimate revision of 38 cents for this year over the past three months with an expected earnings growth rate of 30.76%, much higher than the industry’s average growth of 14.14%. CMG has a market cap of $12.64 billion and carries a Zacks Rank #2. Its VGM Score stands at B.
Align Technology Inc. (ALGN - Free Report) – Up 48%
This is a global medical device company with industry-leading innovative products such as Invisalign clear aligners, iTero Intraoral scanners and OrthoCAD digital services. The stock saw solid earnings estimate revision of 24 cents for this year over the past three months and has an expected growth rate of 22.88% — higher than the industry’s average growth of 15.38%. It has a Zacks Rank #1 and VGM Score of C. Align Technology has a market cap of $29.7 billion.
NetApp Inc. (NTAP - Free Report) – Up 45.5%
This company provides software, systems, and services to manage and share data on-premises, and private and public clouds worldwide. With a market cap of $21.72 billion, the stock witnessed positive earnings estimate revision of nine cents for the year (ending April 2019) in the past three months. It has an estimated earnings growth of 17.03%, higher than the industry’s average growth of 16.85%. The stock has a Zacks Rank #1 and a VGM Score of B.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%. And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>