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5 Growth Stocks at New Highs with Room for More Upside
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Amid the ongoing trade tensions between the Unites States and China, the U.S. stock market continues to enjoy the longest bull run since World War II by avoiding 20% or more decline. The large-cap S&P 500, the Nasdaq Composite Index, the small-cap Russell 2000 Index and the mid-cap S&P 400 Mid Cap Index all touched new highs in Monday’s trading session and the Dow Jones reclaimed its 26,000 mark, reflecting a broad-based rally.
Strong rebound in large-capitalization technology and Internet stocks as well as strong corporate earnings led to investors’ appetite for more risk in recent weeks. Double-digit earnings growth in the second quarter is expected to be the highest quarterly growth pace in almost eight years. For full-year 2018, total earnings of the S&P 500 Index are expected to be up 20.6% on 6.3% higher revenues.
Additionally, the trade agreement reached between the United States and Mexico boosted investor sentiment. Further, the U.S. economy is witnessing the fastest pace of growth in nearly four years with a nearly two-decade low unemployment rate of 3.9%, thanks to historic tax cuts, higher government spending, deregulation, rising consumer confidence and higher spending. Per Trump, “the United States is on track to hit the highest annual growth rate in over 13 years.”
While there are winners in every corner of the space, growth investing takes center stage and is easily outperforming its value brethren this month. This is especially true given that the S&P 500 Growth Index is up 3.9% so far this month compared with gain of 1.6% for the S&P 500 Value Index.
Why Growth?
Growth investing is basically a momentum play and a great strategy in a trending market (a market characterized by a prolonged uptrend). Growth stocks refer to high-quality stocks that are likely to witness revenues and earnings increase at a faster rate than the industry average. These stocks harness their momentum in earnings to create a positive bias in the market, resulting in higher share prices.
As such, growth stocks tend to outperform during an uptrend but exhibit a higher degree of volatility especially compared to value stocks.
How to Tap?
Given this, many investors may want to tap the current bullish market fundamentals. For them, we have highlighted five stocks that hit all-time highs in the current market rally and will likely to continue to move higher given their superior fundamentals.
With the help of our Zacks Stock Screener, we have screened through several criteria like a Zacks Rank #1 (Strong Buy) or #2 (Buy), a Growth Score of A, positive earnings estimate revision for this year, double-digit estimated earnings growth for this year, and a solid Zacks industry Rank. You can see the complete list of today’s Zacks #1 Rank stocks here.
Verso Corporation
It is engaged in the paper industry and produces coated freesheet, coated ground wood and uncoated super calendered papers and pulp.
Zacks Rank: #1 Market Cap: $1.01 Billion This Year Estimated Earnings Growth: 368% Zacks Industry Rank: Top 13%
It is the data authority for hybrid cloud that provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation.
Zacks Rank: #1 Market Cap: $21.84 Billion This Year Estimated Earnings Growth: 27.38% Zacks Industry Rank: Top 19%
It is a leading provider of healthcare in the home with a vision of becoming the premiere solution for patients.
Zacks Rank: #1 Market Cap: $3.96 Billion This Year Estimated Earnings Growth: 53.39% Zacks Industry Rank: Top 26%
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.
Image: Bigstock
5 Growth Stocks at New Highs with Room for More Upside
Amid the ongoing trade tensions between the Unites States and China, the U.S. stock market continues to enjoy the longest bull run since World War II by avoiding 20% or more decline. The large-cap S&P 500, the Nasdaq Composite Index, the small-cap Russell 2000 Index and the mid-cap S&P 400 Mid Cap Index all touched new highs in Monday’s trading session and the Dow Jones reclaimed its 26,000 mark, reflecting a broad-based rally.
Strong rebound in large-capitalization technology and Internet stocks as well as strong corporate earnings led to investors’ appetite for more risk in recent weeks. Double-digit earnings growth in the second quarter is expected to be the highest quarterly growth pace in almost eight years. For full-year 2018, total earnings of the S&P 500 Index are expected to be up 20.6% on 6.3% higher revenues.
Additionally, the trade agreement reached between the United States and Mexico boosted investor sentiment. Further, the U.S. economy is witnessing the fastest pace of growth in nearly four years with a nearly two-decade low unemployment rate of 3.9%, thanks to historic tax cuts, higher government spending, deregulation, rising consumer confidence and higher spending. Per Trump, “the United States is on track to hit the highest annual growth rate in over 13 years.”
While there are winners in every corner of the space, growth investing takes center stage and is easily outperforming its value brethren this month. This is especially true given that the S&P 500 Growth Index is up 3.9% so far this month compared with gain of 1.6% for the S&P 500 Value Index.
Why Growth?
Growth investing is basically a momentum play and a great strategy in a trending market (a market characterized by a prolonged uptrend). Growth stocks refer to high-quality stocks that are likely to witness revenues and earnings increase at a faster rate than the industry average. These stocks harness their momentum in earnings to create a positive bias in the market, resulting in higher share prices.
As such, growth stocks tend to outperform during an uptrend but exhibit a higher degree of volatility especially compared to value stocks.
How to Tap?
Given this, many investors may want to tap the current bullish market fundamentals. For them, we have highlighted five stocks that hit all-time highs in the current market rally and will likely to continue to move higher given their superior fundamentals.
With the help of our Zacks Stock Screener, we have screened through several criteria like a Zacks Rank #1 (Strong Buy) or #2 (Buy), a Growth Score of A, positive earnings estimate revision for this year, double-digit estimated earnings growth for this year, and a solid Zacks industry Rank. You can see the complete list of today’s Zacks #1 Rank stocks here.
Verso Corporation
It is engaged in the paper industry and produces coated freesheet, coated ground wood and uncoated super calendered papers and pulp.
Zacks Rank: #1
Market Cap: $1.01 Billion
This Year Estimated Earnings Growth: 368%
Zacks Industry Rank: Top 13%
Archer Daniels Midland Company (ADM - Free Report)
It procures, transports, stores, processes, and merchandises agricultural commodities and products.
Zacks Rank: #1
Market Cap: $28.38 Billion
This Year Estimated Earnings Growth: 40.33%
Zacks Industry Rank: Top 14%
NetApp Inc. (NTAP - Free Report)
It is the data authority for hybrid cloud that provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation.
Zacks Rank: #1
Market Cap: $21.84 Billion
This Year Estimated Earnings Growth: 27.38%
Zacks Industry Rank: Top 19%
The TJX Companies Inc. (TJX - Free Report)
It is the leading off-price retailer of apparel and home fashions in the United States and worldwide.
Zacks Rank: #2
Market Cap: $67.56 Billion
This Year Estimated Earnings Growth: 21.04%
Zacks Industry Rank: Top 23%
Amedisys Inc. (AMED - Free Report)
It is a leading provider of healthcare in the home with a vision of becoming the premiere solution for patients.
Zacks Rank: #1
Market Cap: $3.96 Billion
This Year Estimated Earnings Growth: 53.39%
Zacks Industry Rank: Top 26%
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>>