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3 Market-Beating Growth Stocks

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Even when stocks were soaring in the aftermath of the election, there were still ways to outperform. The "Market Beating Growth Stocks" screen was one of the best ways, since it looks for Zacks Rank #1s (Strong Buys) that have a Zacks Style Score of "A" for Growth and projected EPS growth of 20% or more.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Remember, a stock making new highs is likely to continue making new highs until something stops the trajectory. This is especially the case during a bull market, which we are most certainly still in. So if stocks are going to pull back a bit amid healthcare wrangling and other political mumbo jumbo, then that's great news for savvy investors who can keep calm. It means stocks will have a lower bar to beat the market all over again.

Today's article has three stocks from this screen that were beating the market when stocks were soaring, and should continue to do so regardless of which way the tides take us next. In addition to the parameters of the screen (which you can see at the above link), they also have impressive streaks of positive surprises at earnings time. And two of them are bucking industry trends that are causing complications for some of their counterparts. Let's start with...

Burlington Stores, Inc. (BURL - Free Report)

Nobody told Burlington Stores, Inc. (BURL - Free Report) that brick-and-mortar retail was on the way out. The company is actually planning to open 30 net new stores in its fiscal 2017, which suggests that consumers are still willing to get out of their house and go down to an actual store for a good deal. This off-price retailer has been showing how to survive in the age of Amazon for a while now; BURL has never missed earnings estimates since its IPO in 2013 and has put together an average surprise of 26.3% over the last four quarters.

It's most recent report was from early this month, when fiscal fourth quarter adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.70 by 4.7%. It was also 15.4% better than the year-ago result. Net sales jumped 9.4% to $1.69 billion. For the full fiscal year, earnings per share were up 33.1% to $3.24, while net sales advanced 9.2% to $5.57 billion. With numbers like this, it’s a bit of surprise that BURL is part of a space (retail-discount) in the bottom 29% of the Zacks Industry Rank. Shares are up more than 78% over the past year, compared to the industry’s 7.75%. The stock is also up 10% year to date.

The Zacks Consensus Estimate for this fiscal year (ending January 2018) increased 5.1% in the past 90 days. Much of that improvement has come in the past month, as 6 of 8 covering analysts lifted the expectation by 3.5% in that time. The next fiscal year ends a far way off in January 2019, but analysts already expect a 13.9% improvement to $4.43.

 

Burlington Stores, Inc. Price, Consensus and EPS Surprise

Burlington Stores, Inc. Price, Consensus and EPS Surprise | Burlington Stores, Inc. Quote


Brooks Automation

What would a 'market-beating' screen be without some love for the semiconductors? Any company or industry that rubs up against this space seems to outperform the market. Such has been the case for Brooks Automation , which delivers automation solutions to the global semiconductor and related industries. Technically, it is part of the electronics – manufacturing machinery industry, so it is in the top 2% of the Zacks Industry Rank with the 5th spot out of 265. BRKS has beaten the Zacks Consensus Estimate for 8 straight quarters. It’s most recent surprise was in early February.

The company reported fiscal first quarter earnings of 22 cents, or 10% better than our expectations at 20 cents. The past four quarters have amassed an average surprise of 38.7%. Revenue in the quarter was up 2% year-over-year to $160 million, thanks to contributions from both its Brooks Life Sciences Systems segment and its Brooks Semiconductor Solutions Group segment. For the current quarter, revenue is expected between $165 million and $170 million. Non-GAAP earnings per share are seen at 24 cents to 27 cents, which gives it a good chance to beat our current estimate of 24 cents.

Speaking of earnings estimates, BRKS got quite a lift from analysts after this report. The Zacks Consensus Estimate for this fiscal year (ending in September) is 96 cents, marking an improvement of 17% over the past two months as all 3 covering analysts boosted their expectations. The Zacks Consensus Estimate for next fiscal year (ending September 2018) is at $1.04, which is 8.3% better than this year and up 6.1% in the past two months. Shares of BRKS have jumped 23% so far this year.

 

Brooks Automation, Inc. Price, Consensus and EPS Surprise

Brooks Automation, Inc. Price, Consensus and EPS Surprise | Brooks Automation, Inc. Quote


Logitech International (LOGI - Free Report)

By adopting new mobile platforms while maximizing profit in PC peripherals, Logitech International (LOGI - Free Report) has found a way to mitigate industry headwinds and beat the Zacks Consensus Estimate for an impressive 16 straight quarters. The company designs, manufactures and markets innovative peripherals that provide people with easy access to the digital world. This Zacks Rank #1 is up 26% so far this year, and shows no signs of calming down. It has surpassed the Zacks Consensus Estimate by an average of 131.6% over the past four quarters, and recently offered encouraging outlooks for both this year and next.

The most recent surprise came in late January, when earnings per share of 59 cents topped our expectations by 63.9% while also beating the previous year’s 41 cents. Sales increased 7% to $667 million, which also beat the Zacks Consensus Estimate at $638 million. Its Retail segment was the big money maker, growing by 13% in constant currency for its best performance in the company’s history. LOGI expects the Retail segment to grow 12% to 13% this fiscal year, which it raised from the previous outlook of 8% to 10%. It also enhanced its guidance for non-GAAP operating income to between $225 million and $230 million, instead of $195 million to $205 million.

More recently, LOGI felt comfortable enough to offer a positive outlook for fiscal 2018 as well. It sees retail sales growth in the high single-digits, as well as non-GAAP operating income of $250 million to $260 million. It’s easy to see why earnings estimates have been on the rise. The Zacks Consensus Estimate for this fiscal year (ending this month) is up 27% in the past two months to $1.12. The Zacks Consensus Estimate for next fiscal year (ending March 2018) is up by 20% in its own right to $1.20, or 7.1% better than this fiscal year.


Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

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Logitech International S.A. (LOGI) - free report >>

Burlington Stores, Inc. (BURL) - free report >>