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Amidst the banking crisis and interest rate drama these last few weeks, the stock market quietly continues to grind higher. Stocks are climbing the proverbial wall of worry as they often do.
One of the best ways to get involved in the upside is to focus on stocks that boast high Zacks Ranks. The list identifies stocks with upwards trending earnings revisions and can significantly improve the odds of picking a market beating stock.
The two stocks I feature below both have Zacks Rank #1 (Strong Buy) recommendations, meaning their earnings expectations have been revised significantly higher. Additionally, they are both outperforming the broad market YTD.
Image Source: Zacks Investment Research
Crocs
Crocs (CROX - Free Report) is one of the most popular footwear brands in the world. It is famous for its iconic clog made with extremely light and comfortable materials. The company offers a wide variety of footwear products including sandals, wedges, flip-flops and slides that cater to people of all ages. Crocs’ products are available in more than 80 countries and are distributed via wholesale, retail, and e-commerce platforms.
Crocs stock has been a tremendous performer over the last five years, albeit a bit more volatile than the broad market. Over that time CROX has more than 6x’d investors’ money.
Image Source: Zacks Investment Research
Crocs currently earns a Zacks Rank #1 (Strong Buy), indicating upward trending earnings revisions.
Sales for CROX in the current quarter are expected to grow 29% YoY to $853 million, while the current year sales are projected to see growth of 12.5% YoY to $4 billion. Earnings estimates for the current quarter have been revised substantially over the last 60 days, as have the current year and next year earnings expectations.
Image Source: Zacks Investment Research
The most recent quarterly report, Crocs beat earnings expectations by 22%, and over the last four reporting periods it has beat every single time. The average earnings beat is 22% above expectations.
CROX is trading at a very appealing valuation as well. Its one-year forward earnings multiple is 10x, which is well below its five-year median of 21x, and below the market average 18x.
Image Source: Zacks Investment Research
Nucor
Nucor (NUE - Free Report) is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. The company has 123 operating facilities most of which are in the U.S. and Canada and most of its customers are in North America. Nucor operates in three segments – the Steel Mills segment, the Steel Products segment, and the Raw Materials segment. Its steel products are used in highways, bridges, reservoirs, utilities, hospitals, schools, airports, stadiums, and high-rise buildings.
Nucor has shown an impressive stock performance over the last 25 years. In that time, it is up over 2000%, for a 13% annualized return.
Image Source: Zacks Investment Research
Currently, NUE is a Zacks Rank #1 (Strong Buy) stock, indicating upward trending earnings revisions. Sales and earnings are both expected to slow over the next few quarters. Current quarter sales are projected to slip by -21% YoY to $8.3 billion, and earnings are expected to fall -46% YoY to $4.13 per share.
But earnings expectations have been revised considerably higher over the last two months. This is extremely important to note, because the market is forward-looking, and even though earnings are falling YoY, the expectations are improving considerably. Current quarter earnings have been revised higher by 15% over the last 60 days and current year earnings increased by 24% over the last 90 days.
Image Source: Zacks Investment Research
NUE has a one-year forward earnings multiple of 10x, which is much lower than its 10-year median of 15x, and below the market average 18x. Nucor has a dividend yield of 1.4%, and the dividend payment has increased by 8.2% annually over the last three years.
Image Source: Zacks Investment Research
Conclusion
Markets go up and markets go down, but having a process will always be one way for investors to stay consistent. Stocks with high Zacks Ranks have shown over time that they outperform the market over the long term. While stock picking is extremely important to the investment process, it is also key that investors are very focused on risk management and following a plan.
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2 Top Ranked Stocks to Buy Now
Amidst the banking crisis and interest rate drama these last few weeks, the stock market quietly continues to grind higher. Stocks are climbing the proverbial wall of worry as they often do.
One of the best ways to get involved in the upside is to focus on stocks that boast high Zacks Ranks. The list identifies stocks with upwards trending earnings revisions and can significantly improve the odds of picking a market beating stock.
The two stocks I feature below both have Zacks Rank #1 (Strong Buy) recommendations, meaning their earnings expectations have been revised significantly higher. Additionally, they are both outperforming the broad market YTD.
Image Source: Zacks Investment Research
Crocs
Crocs (CROX - Free Report) is one of the most popular footwear brands in the world. It is famous for its iconic clog made with extremely light and comfortable materials. The company offers a wide variety of footwear products including sandals, wedges, flip-flops and slides that cater to people of all ages. Crocs’ products are available in more than 80 countries and are distributed via wholesale, retail, and e-commerce platforms.
Crocs stock has been a tremendous performer over the last five years, albeit a bit more volatile than the broad market. Over that time CROX has more than 6x’d investors’ money.
Image Source: Zacks Investment Research
Crocs currently earns a Zacks Rank #1 (Strong Buy), indicating upward trending earnings revisions.
Sales for CROX in the current quarter are expected to grow 29% YoY to $853 million, while the current year sales are projected to see growth of 12.5% YoY to $4 billion. Earnings estimates for the current quarter have been revised substantially over the last 60 days, as have the current year and next year earnings expectations.
Image Source: Zacks Investment Research
The most recent quarterly report, Crocs beat earnings expectations by 22%, and over the last four reporting periods it has beat every single time. The average earnings beat is 22% above expectations.
CROX is trading at a very appealing valuation as well. Its one-year forward earnings multiple is 10x, which is well below its five-year median of 21x, and below the market average 18x.
Image Source: Zacks Investment Research
Nucor
Nucor (NUE - Free Report) is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. The company has 123 operating facilities most of which are in the U.S. and Canada and most of its customers are in North America. Nucor operates in three segments – the Steel Mills segment, the Steel Products segment, and the Raw Materials segment. Its steel products are used in highways, bridges, reservoirs, utilities, hospitals, schools, airports, stadiums, and high-rise buildings.
Nucor has shown an impressive stock performance over the last 25 years. In that time, it is up over 2000%, for a 13% annualized return.
Image Source: Zacks Investment Research
Currently, NUE is a Zacks Rank #1 (Strong Buy) stock, indicating upward trending earnings revisions. Sales and earnings are both expected to slow over the next few quarters. Current quarter sales are projected to slip by -21% YoY to $8.3 billion, and earnings are expected to fall -46% YoY to $4.13 per share.
But earnings expectations have been revised considerably higher over the last two months. This is extremely important to note, because the market is forward-looking, and even though earnings are falling YoY, the expectations are improving considerably. Current quarter earnings have been revised higher by 15% over the last 60 days and current year earnings increased by 24% over the last 90 days.
Image Source: Zacks Investment Research
NUE has a one-year forward earnings multiple of 10x, which is much lower than its 10-year median of 15x, and below the market average 18x. Nucor has a dividend yield of 1.4%, and the dividend payment has increased by 8.2% annually over the last three years.
Image Source: Zacks Investment Research
Conclusion
Markets go up and markets go down, but having a process will always be one way for investors to stay consistent. Stocks with high Zacks Ranks have shown over time that they outperform the market over the long term. While stock picking is extremely important to the investment process, it is also key that investors are very focused on risk management and following a plan.