For most things in life, the simpler the better. The same goes for investing. In order to outperform the market, we need to be invested in individual stocks and ETFs that are outperforming the market. Unfortunately, most investors try to overcomplicate their stock-picking process which ultimately leads to too many details and subpar performance.
Following a rule-based system that removes emotion from the equation is paramount in helping us formulate our process. This system will allow us to factor in what is relevant and exclude information that isn’t vital to our success. The stock market is a dynamic environment where emotions typically play a large role in most investment decisions. By following a proven system, investors are able to bypass the obstacles that haunt the majority of investors.
The top-performing stocks all have two things in common. First, these companies all exhibit robust fundamental growth in some form or fashion. Typically, we see this in the form of enhanced revenue and earnings growth. As these companies go through their most bullish periods, this healthy fundamental evolution tips off the institutions that hold the type of buying power that is able move markets. These institutions load up on shares, increasing the buying pressure for the stock and creating the trends we see when we view price charts.
The second piece that these best-in-class companies have in common during their most bullish runs is that they are in strong price uptrends. Price charts are a retail investor’s best friend. Investors should seek to employ a combination of fundamental and technical analysis. In today’s investment landscape, it’s important to utilize both – not just one or the other. Interpreting price and volume action in order to identify stocks in the strongest uptrends is a skill that can be learned and successfully applied time and time again.
We aim to detect companies that are superior to their competition and have unique products or services. We don’t necessarily want to invest solely in companies that we know or are aware of at the current time, but we should thoroughly evaluate a stock before taking a position. Another sign to look out for is management activity. Is the company buying back shares? Are insiders at the company buying shares? This activity serves as a sign that management believes in the company and they expect good things in the future. After all, they know their company better than anyone else.
Fortunately for investors, the Zacks Rank employs a proven system that helps identify the top stocks each and every trading day. These stocks are all witnessing positive earnings estimate revision activity which has been proven over time to lead future stock price appreciation. Sticking to stocks that are either a Zacks Rank #1, 2, or 3 and that are in strong price uptrends can serve as a great starting point for investors.
Let’s take a look at three companies in the current investment climate that are exhibiting these characteristics.
Henry Schein, Inc. (HSIC - Free Report)
Henry Schein is the world’s largest provider of healthcare products and services. HSIC serves office-based dental and medical practitioners as well as physician practices, laboratories, governments, and institutional healthcare clinics. The company offers a wide variety of dental products such as impression materials, anesthetics, dental implants, X-ray supplies and equipment, acrylics, and articulators. HSIC also provides medical products that fall under the pharmaceutical category such as vaccines, diagnostic tests, infection-control products, and vitamins. Henry Schein was founded in 1932 and is headquartered in Melville, NY.
A Zacks Rank #2 (Strong Buy) stock, HSIC presently operates in over 30 countries. Strong demand in the global dental and medical markets continues to drive healthy year-over-year increases in sales. During Q3, Henry Schein’s global dental sales increased 10.5% compared with the same period in 2020. As per a recent report from MarketWatch, the global dental services market was valued at $418.3 million in 2020 and is projected to reach $728.6 million by 2027. This healthy CAGR of 7.8% should allow HSIC to continue the recent sales growth trend.
HSIC has strung together a noteworthy history of earnings surprises, exceeding estimates in each quarter for the last four years running. The healthcare product provider most recently reported EPS of $1.10, beating the $0.94 consensus estimate by 17.02%. HSIC has posted a trailing four-quarter average earnings surprise of 17.02%.
Excluding the recent and uncommon quarterly sales miss, ABC surpassed earnings estimates in each quarter for the past five years. Over the last four quarters, ABC has delivered an average earnings surprise of 2.29%, aiding the stock’s return of nearly 29% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For most things in life, the simpler the better. The same goes for investing. In order to outperform the market, we need to be invested in individual stocks and ETFs that are outperforming the market. Unfortunately, most investors try to overcomplicate their stock-picking process which ultimately leads to too many details and subpar performance.
Following a rule-based system that removes emotion from the equation is paramount in helping us formulate our process. This system will allow us to factor in what is relevant and exclude information that isn’t vital to our success. The stock market is a dynamic environment where emotions typically play a large role in most investment decisions. By following a proven system, investors are able to bypass the obstacles that haunt the majority of investors.
The top-performing stocks all have two things in common. First, these companies all exhibit robust fundamental growth in some form or fashion. Typically, we see this in the form of enhanced revenue and earnings growth. As these companies go through their most bullish periods, this healthy fundamental evolution tips off the institutions that hold the type of buying power that is able move markets. These institutions load up on shares, increasing the buying pressure for the stock and creating the trends we see when we view price charts.
The second piece that these best-in-class companies have in common during their most bullish runs is that they are in strong price uptrends. Price charts are a retail investor’s best friend. Investors should seek to employ a combination of fundamental and technical analysis. In today’s investment landscape, it’s important to utilize both – not just one or the other. Interpreting price and volume action in order to identify stocks in the strongest uptrends is a skill that can be learned and successfully applied time and time again.
We aim to detect companies that are superior to their competition and have unique products or services. We don’t necessarily want to invest solely in companies that we know or are aware of at the current time, but we should thoroughly evaluate a stock before taking a position. Another sign to look out for is management activity. Is the company buying back shares? Are insiders at the company buying shares? This activity serves as a sign that management believes in the company and they expect good things in the future. After all, they know their company better than anyone else.
Fortunately for investors, the Zacks Rank employs a proven system that helps identify the top stocks each and every trading day. These stocks are all witnessing positive earnings estimate revision activity which has been proven over time to lead future stock price appreciation. Sticking to stocks that are either a Zacks Rank #1, 2, or 3 and that are in strong price uptrends can serve as a great starting point for investors.
Let’s take a look at three companies in the current investment climate that are exhibiting these characteristics.
Henry Schein, Inc. (HSIC - Free Report)
Henry Schein is the world’s largest provider of healthcare products and services. HSIC serves office-based dental and medical practitioners as well as physician practices, laboratories, governments, and institutional healthcare clinics. The company offers a wide variety of dental products such as impression materials, anesthetics, dental implants, X-ray supplies and equipment, acrylics, and articulators. HSIC also provides medical products that fall under the pharmaceutical category such as vaccines, diagnostic tests, infection-control products, and vitamins. Henry Schein was founded in 1932 and is headquartered in Melville, NY.
A Zacks Rank #2 (Strong Buy) stock, HSIC presently operates in over 30 countries. Strong demand in the global dental and medical markets continues to drive healthy year-over-year increases in sales. During Q3, Henry Schein’s global dental sales increased 10.5% compared with the same period in 2020. As per a recent report from MarketWatch, the global dental services market was valued at $418.3 million in 2020 and is projected to reach $728.6 million by 2027. This healthy CAGR of 7.8% should allow HSIC to continue the recent sales growth trend.
HSIC has strung together a noteworthy history of earnings surprises, exceeding estimates in each quarter for the last four years running. The healthcare product provider most recently reported EPS of $1.10, beating the $0.94 consensus estimate by 17.02%. HSIC has posted a trailing four-quarter average earnings surprise of 17.02%.
Excluding the recent and uncommon quarterly sales miss, ABC surpassed earnings estimates in each quarter for the past five years. Over the last four quarters, ABC has delivered an average earnings surprise of 2.29%, aiding the stock’s return of nearly 29% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on MCK - FREE
Get the latest research report on HSIC - FREE