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How to Find the Best Top-Ranked Stocks to Buy Now

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Wall Street is currently waiting to see how August’s inflation data comes in on September 13. The bulls are hoping consumer prices showcase continued cooling, which might allow the Fed to keep its core rate unchanged in the coming months as the U.S. economy heads down a possible soft-landing path.  

The Nasdaq and the S&P 500 were down slightly through early afternoon trading on Tuesday, as they both hover between their 50-day and 21-day moving averages. The dip comes as investors wait for the inflation data and the expected unveiling of Apple’s latest devices, including the iPhone on Tuesday afternoon.

Some might be a bit nervous about inflation and what the Fed will due next week. But it is worth noting that even with the latest CPI projections in hand, Wall Street places a 93% probability on the Fed leaving its core rate unchanged at between 5.25% and 5.50% at the conclusion of its September meeting.

With this in mind, investors can utilize the Filtered Zacks Rank 5 Stock Screen to help find potentially winning stocks to buy as the bullish market backdrop remains rather firmly in place at the moment.

Zacks Rank #1 (Strong Buy) stocks outperform the market in both good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time. Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.


Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.

• Zacks Rank equal to 1

Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.

• % Change (Q1) Est. over 4 Weeks greater than 0

Positive current quarter estimate revisions over the last four weeks.

• % Broker Rating Change over 4 Week equal to Top # 5

Top 5 stocks with the best average broker rating changes over the last four weeks.

This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.

Here are two of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…

Parsons Corporation ((PSN - Free Report) )

Parsons provides software and hardware products, technical services, and integrated solutions to support customers across defense, intelligence, and critical infrastructure markets.

Parsons boasts that it has “developed significant expertise and differentiated capabilities” in critical areas of cybersecurity, intelligence, missile defense, space, geospatial, and beyond. “In the second quarter, we achieved organic revenue growth of over 20% in both business segments and won six contracts over $100 million, all company records,” CEO Carey Smith said in prepared remarks.

Zacks Investment Research
Image Source: Zacks Investment Research

Parsons crushed our Q2 EPS estimate by 29% in early August and boosted its guidance, with its earnings outlook surging recently for FY23, FY24, and FY25 to help it grab its Zacks Rank #1 (Strong Buy). Zacks estimates call for PSN to post 23% EPS growth this year and another 14% higher next year on 19% and 5%, respective revenue expansion.  

PSN shares have climbed roughly 70% since their debut in 2019 vs. the Zacks Tech sector’s 84%. More recently, Parsons stock has crushed tech, up 53% over the last 24 months vs. Tech’s 11% decline.

Parsons stock is up 20% YTD, including a 16% surge since late July. Yet, PSN still trades at a 7% discount to its average Zacks price target. And it is trading directly in line with the Tech sector at 24.1X forward 12-month earnings.

Nvidia ((NVDA - Free Report) )

Nvidia has been the star of the 2023 tech-driven rally. The GPU maker has skyrocketed over 200% to hit fresh records along the way on the back of booming earnings and revenue growth. Nvidia was long a superstar in gaming before it expanded its reach into data centers, and most crucially at the moment, artificial intelligence.

NVDA has become synonymous with the AI boom on Wall Street as its chips have the firepower needed for artificial intelligence and the widely popular generative AI. Wall Street analysts can hardly keep up with Nvidia’s AI-boosted guidance. Its soaring earnings outlook helps it land a Zacks Rank #1 (Strong Buy) right now.

Zacks Investment Research
Image Source: Zacks Investment Research

Nvidia’s revenue is projected to grow by 82% this year and another 44% next year, based on Zacks estimates to soar from $29.74 billion in 2022 all the way to $77.70 billion next year. Meanwhile, its adjusted earnings are projected to skyrocket by 219% and 49%, respectively. Nvidia’s growth outlook is truly mind-blowing.

Even though Nvidia has soared over 200% and sits near fresh highs, NVDA trades 38% below its current average Zacks price target. Some might be nervous about “chasing” Nvidia here. Yet, Nvidia trades at a 50% discount to its own 10-year highs at a PEG ratio of 2.8 and 15% below its median.

Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

Click here to sign up for a free trial to the Research Wizard today.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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