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These 3 Buy-Rated Stocks Are Displaying Notable Momentum
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Stocks have continued their winning ways, with favorable inflation data and an earnings season that has turned out better than feared helping to drive momentum. We’re still not out of the woods yet regarding earnings season, though, as mega-cap favorite NVIDIA is scheduled to unveil quarterly results this week and cap off the Q3 cycle for the ‘Big 7’.
Amid the recent favorable price action within the market, several stocks are nearing or breaking 52-week highs, including Palantir Technologies (PLTR - Free Report) , Cboe Global Markets (CBOE - Free Report) , and Core & Main (CNM - Free Report) .
And in addition to recent momentum, all three sport a favorable Zacks Rank, reflecting upward earnings estimate revisions among analysts. Let’s take a closer look at each for those who like to tap into relative strength.
Palantir Technologies
Palantir Technologies, a current Zacks Rank #1 (Strong Buy), builds and deploys software platforms for the intelligence community principally in the United States. The company’s current year outlook has improved in a big way, with the $0.25 Zacks Consensus EPS Estimate up more than 65% over the last year.
Image Source: Zacks Investment Research
Up 30% over the last month, PLTR shares have been red-hot, primarily driven by recent better-than-expected quarterly results. Concerning headline figures, PLTR exceeded the Zacks Consensus EPS Estimate by 16% and reported revenue modestly ahead of expectations, with both items improving year-over-year.
The company’s revenue growth has remained robust, as shown below.
Image Source: Zacks Investment Research
The results reflected Palantir’s fourth consecutive quarter of GAAP profitability, now eligible for inclusion within the S&P 500. Impressively, the company’s commercial business within the United States has seen a reacceleration of growth, aided by growing demand for its new Artificial Intelligence Platform.
Shares trade at high valuation multiples, typical of those with big growth expectations. The company’s current forward price-to-sales ratio (F1) works out to be 20.1X, above the five-year median but beneath five-year highs of 50.5X.
PLTR’s earnings are forecasted to climb 315% in its current year (FY23) on 17% higher sales.
Image Source: Zacks Investment Research
Cboe Global Markets
Cboe Global Markets is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. The stock is a Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across the board.
Image Source: Zacks Investment Research
Shares have seen strong buying pressure following back-to-back releases, with the most recent quarterly print coming in early November. Concerning the release, CBOW posted record net revenue of $480.5 million and adjusted EPS of $2.06, reflecting year-over-year growth rates of 9% and 18%, respectively.
Image Source: Zacks Investment Research
CBOE shares also provide investors a small income stream, currently yielding 1.3% annually. While the current yield resides on the lower end, the company’s 13% five-year annualized dividend growth rate helps to bridge the gap.
Image Source: Zacks Investment Research
It’s worth noting that CBOE shares have been long-term outperformers, providing a solid 14.1% annualized return over the last decade vs. the S&P 500’s 12.2%.
Core & Main
Core & Main, a current Zacks Rank #1 (Strong Buy), is a specialized distributor of water, wastewater, storm drainage, fire protection products, and related services.
Analysts have been bullish regarding the company’s upcoming release expected on December 12th, with the $0.68 Zacks Consensus EPS Estimate up 6% since just August and reflecting year-over-year growth of 5%.
Image Source: Zacks Investment Research
It’s worth noting that the company's earnings are forecasted to pull back roughly 1% in its current year (FY24) before returning to growth in FY25 (+17%). Shares have seen notably strong buying pressure over the last month, up 15% and widely outperforming the S&P 500.
Image Source: Zacks Investment Research
Bottom Line
Stocks nearing or breaking 52-week highs reflect considerable momentum, with positive earnings estimates from analysts commonly providing the fuel needed to continue climbing.
And for those interested in stocks seeing notable relative strength, all three above – Palantir Technologies (PLTR - Free Report) , Cboe Global Markets (CBOE - Free Report) , and Core & Main (CNM - Free Report) – precisely fit the criteria.
In addition to favorable price action, all three have seen their near-term earnings outlooks shift positively.
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These 3 Buy-Rated Stocks Are Displaying Notable Momentum
Stocks have continued their winning ways, with favorable inflation data and an earnings season that has turned out better than feared helping to drive momentum. We’re still not out of the woods yet regarding earnings season, though, as mega-cap favorite NVIDIA is scheduled to unveil quarterly results this week and cap off the Q3 cycle for the ‘Big 7’.
Amid the recent favorable price action within the market, several stocks are nearing or breaking 52-week highs, including Palantir Technologies (PLTR - Free Report) , Cboe Global Markets (CBOE - Free Report) , and Core & Main (CNM - Free Report) .
And in addition to recent momentum, all three sport a favorable Zacks Rank, reflecting upward earnings estimate revisions among analysts. Let’s take a closer look at each for those who like to tap into relative strength.
Palantir Technologies
Palantir Technologies, a current Zacks Rank #1 (Strong Buy), builds and deploys software platforms for the intelligence community principally in the United States. The company’s current year outlook has improved in a big way, with the $0.25 Zacks Consensus EPS Estimate up more than 65% over the last year.
Image Source: Zacks Investment Research
Up 30% over the last month, PLTR shares have been red-hot, primarily driven by recent better-than-expected quarterly results. Concerning headline figures, PLTR exceeded the Zacks Consensus EPS Estimate by 16% and reported revenue modestly ahead of expectations, with both items improving year-over-year.
The company’s revenue growth has remained robust, as shown below.
Image Source: Zacks Investment Research
The results reflected Palantir’s fourth consecutive quarter of GAAP profitability, now eligible for inclusion within the S&P 500. Impressively, the company’s commercial business within the United States has seen a reacceleration of growth, aided by growing demand for its new Artificial Intelligence Platform.
Shares trade at high valuation multiples, typical of those with big growth expectations. The company’s current forward price-to-sales ratio (F1) works out to be 20.1X, above the five-year median but beneath five-year highs of 50.5X.
PLTR’s earnings are forecasted to climb 315% in its current year (FY23) on 17% higher sales.
Image Source: Zacks Investment Research
Cboe Global Markets
Cboe Global Markets is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. The stock is a Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across the board.
Image Source: Zacks Investment Research
Shares have seen strong buying pressure following back-to-back releases, with the most recent quarterly print coming in early November. Concerning the release, CBOW posted record net revenue of $480.5 million and adjusted EPS of $2.06, reflecting year-over-year growth rates of 9% and 18%, respectively.
Image Source: Zacks Investment Research
CBOE shares also provide investors a small income stream, currently yielding 1.3% annually. While the current yield resides on the lower end, the company’s 13% five-year annualized dividend growth rate helps to bridge the gap.
Image Source: Zacks Investment Research
It’s worth noting that CBOE shares have been long-term outperformers, providing a solid 14.1% annualized return over the last decade vs. the S&P 500’s 12.2%.
Core & Main
Core & Main, a current Zacks Rank #1 (Strong Buy), is a specialized distributor of water, wastewater, storm drainage, fire protection products, and related services.
Analysts have been bullish regarding the company’s upcoming release expected on December 12th, with the $0.68 Zacks Consensus EPS Estimate up 6% since just August and reflecting year-over-year growth of 5%.
Image Source: Zacks Investment Research
It’s worth noting that the company's earnings are forecasted to pull back roughly 1% in its current year (FY24) before returning to growth in FY25 (+17%). Shares have seen notably strong buying pressure over the last month, up 15% and widely outperforming the S&P 500.
Image Source: Zacks Investment Research
Bottom Line
Stocks nearing or breaking 52-week highs reflect considerable momentum, with positive earnings estimates from analysts commonly providing the fuel needed to continue climbing.
And for those interested in stocks seeing notable relative strength, all three above – Palantir Technologies (PLTR - Free Report) , Cboe Global Markets (CBOE - Free Report) , and Core & Main (CNM - Free Report) – precisely fit the criteria.
In addition to favorable price action, all three have seen their near-term earnings outlooks shift positively.