For Immediate Release
Chicago, IL – October 29, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include
Calix Inc. ( CALX Quick Quote CALX - Free Report) , Sleep Number Corp. ( SNBR Quick Quote SNBR - Free Report) , Brightcove Inc. ( BCOV Quick Quote BCOV - Free Report) , Crocs Inc. ( CROX Quick Quote CROX - Free Report) and Group 1 Automotive Inc. ( GPI Quick Quote GPI - Free Report) . Here are highlights from Wednesday’s Analyst Blog: 5 Top-Ranked Stocks Flying High in Volatile October
Volatility persists in Wall Street this month after last month's market mayhem. The resurgence of coronavirus at a record high level in the United States and Europe, inability of the U.S. Congress to reach a deal for the second trench of fiscal stimulus and a tighter-than-expected U.S. presidential election battle scheduled on Nov 3 are the primary reasons for market fluctuations in October.
As a result of the three above-mentioned reasons, the reopening stocks have suffered a blow in October while market participants' preferences shifted toward growth and momentum stocks. Month to date, the Dow is down 1.2%, while the S&P 500 and the Nasdaq Composite have gained 0.8% and 2.4%, respectively, as these two indexes contain more growth/momentum stocks.
Although several growth stocks have popped in October we have selected five Zacks top-Ranked stocks with more upside left. Notably, growth investors are primarily focused on stocks with aggressive earnings or revenue growth, which should propel their stock price higher in the future.
Record Spike in COVID-19 Infections
According to the Johns Hopkins University, daily coronavirus cases in the United States have risen a record high by an average of 69,967 over the past seven days. Per CNBC, more than 20 states reported record-high numbers of average daily new cases. Moreover, new cases are rising by 5% or more in 36 states. In Europe, the government of France has declared a public health state of emergency and the U.K. government is mulling over a second national lockdown. Russia also saw a spike in new COVID-19 cases.
Lack of Fresh Fiscal Stimulus
Despite three months of negotiations, the U.S. Congress failed to reach an amicable solution regarding the size and the scope of the second round of fiscal stimulus. Chances of a deal before the U.S. presidential election is bleak as Senate Majority Leader Mitch McConnell has adjourned the Senate until Nov 9. The first tranche of the $2.2 trillion stimulus ended in July. Several economic data have indicated that the U.S. economic recovery has slowed in the absence of a fresh fiscal stimulus.
Upcoming U.S. Presidential Election
Various political experts have predicted that the upcoming presidential election will be a closely contested one. Historically, stock markets have remained volatile in the month before the election. Market participants generally choose to hold cash instead of investing in risky assets like equities while assessing the economic and financial consequences of the election result.
Our Top Picks
We have narrowed down our search to five growth stocks that have gained more than 25% in October. These stocks have strong growth potential and witnessed robust earnings estimate revisions in the last 7 to 30 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a
Growth Score A. You can see . the complete list of today’s Zacks #1 Rank stocks here Calix Inc. provides cloud and software platforms, and systems and services required to deliver the unified access network in the United States, the Middle East, Canada, Europe, the Caribbean and internationally.
The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 67.3% over the last 7 days. The stock price has soared 39.7% month to date.
Sleep Number Corp. provides sleep solutions and services in the United States. It designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name.
The company has an expected earnings growth rate of 50.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 47.1% over the last 30 days. The stock price has jumped 32.3% month to date.
Brightcove Inc. provides cloud-based services for video. Its flagship product is Video Cloud, an online video platform that enables its customers to publish and distribute video to Internet-connected devices.
The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 7 days. The stock price has climbed 31.2% month to date.
Crocs Inc. designs, develops, manufactures, markets and distributes casual lifestyle footwear and accessories for men, women and children worldwide. It offers various footwear products, including clogs, sandals, flips and slides, shoes, and boots under the Crocs brand name.
The company has an expected earnings growth rate of 29.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 30 days. The stock price has surged 28.2% month to date.
Group 1 Automotive Inc. is a leading operator in the automotive retailing industry. It has expanded to become the third-largest dealership group in the United States. The company has expected earnings growth of 46.8% for the current year. The Zacks Consensus Estimate for the current year has improved 29% over the last 30 days. The stock price has rallied 25.9% month to date. Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>
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