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How to Use the Zacks Rank to Find Hidden Gem Stocks

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  • (1:00) - Finding Hidden Gems For Your Portfolio
  • (7:50) - Tracey’s Top Stock Picks
  • (24:20) - Big Takeaways: DD, NTR, TRNS, HCCI,  BOOT
  •                Podcast@Zacks.com

 

Welcome to Episode #278 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey went solo to talk about how to use the Zacks Rank to find great hidden gem stocks.

Everyone knows all about the FAANGs and stocks like Microsoft, PayPal and Shopify.

But what if you could invest in a great company that’s growing its earnings before everyone knows about it?

The Secret to Finding the Hidden Gem Stocks

Here’s the secret: Zacks.com has a list of Zacks Rank #1 (Strong Buy) stocks.

The Strong Buy stocks usually have rising earnings estimates which indicates something positive may be happening behind the scenes at the company.

Currently, it’s 233 stocks.

Some are popular, well known companies, like Zoom Video. But there are usually companies you’ve never heard of, or that are so out of favor that they’re ignored.

Start there.

5 Zacks Rank Strong Buy Stocks

1.       DuPont (DD - Free Report) is certainly not “hidden” but shares are up just 10.9% year-to-date even though earnings are expected to be up 12.8% this year and 18.8% in 2022. 10 chemical companies were on the list which tells you that the trend is rising earnings estimates in the industry.

2.       Nutrien (NTR - Free Report) is an agribusiness company which also produces fertilizers. Earnings are expected to rise 105% this year as the agriculture industry enters its up cycle. Shares are up 28% year-to-date but still trade with a forward P/E of 16.

3.       Transcat (TRNS - Free Report) is in the test and measurement industry. In the fourth quarter, it posted record revenue. Earnings are expected to rise 37.9% in fiscal 2022 and another 29.4% in fiscal 2023.

4.       Heritage Crystal Clean (HCCI - Free Report) is the largest environmental service provider in the US and Canada handling hazardous and non-hazardous waste services. Shares are up 35% year-to-date as its oil business segment was a first quarter record, up 21% year-over-year. It has a forward P/E of 19.

5.       Boot Barn (BOOT - Free Report) operates 275 stores in 36 states selling footwear, apparel and accessories. It’s  a red hot retailer expected to grow earnings by 70% in fiscal 2022. Shares have soared 92% year-to-date and have gained 315% in the last year. Does this Zacks #1 (Strong Buy) have more gas left in the tank?

What else should you know about finding hidden gems among the Zacks #1 Rank stocks?

Listen to this week’s podcast to find out.

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