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3 Top-Ranked Momentum Stocks to Buy for November and Beyond
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Today’s episode of Full Court Finance at Zacks explores the recent stock market rebound and the broader earnings and interest rate picture as the calendar turns to November. The episode then dives into three highly-ranked Zacks stocks that have posted double-digit climbs in 2022 and recently popped after topping estimates and providing upbeat guidance.
The market has bounced back since the start of October after it ended the first three quarters of the year down roughly 25%. The S&P 500 is up about 8% since then, with all three major indexes on track for monthly gains as Wall Street decided it was time to buy beaten-down stocks.
In order to extend the current rally, Wall Street will likely need to see the earnings picture stabilize to help mark a bottom for the current declining EPS picture. Unfortunately, the reports from Amazon and others showcased that even the technology titans are not immune from the economic forces dragging down spending and profits.
Jay Powell and the Fed also remain top-of-mind. Traders are still betting heavily that the Fed raises its core interest rate by 0.75%, but there is less conviction than there was just a few weeks ago.
The Fed’s two-day FOMC meeting ends on November 2. If the Fed takes its foot off the gas, the market could be able to sustain the recent momentum since a ton of the earnings drop and higher rates are already priced in. Plus, history is on the side of the bulls as we enter the midterms considering that the S&P 500 has climbed during the year period following every midterm election since 1942, averaging a 15% return.
Still, given the continued uncertainty on the earnings and rate fronts, investors might want to buy stocks that are bucking market trends and proving upbeat guidance amid all the headwinds. The three stocks we explore today have done just that and crushed the market in 2022.
The Chefs' Warehouse, Inc. (CHEF - Free Report) is a top distributor of specialty food products in the U.S. and Canada, with a focus on the higher-end side of the dining scene. The Chefs' Warehouse topped Q3 estimates on October 26 and raised its 2022 guidance with high-income consumers still spending heavily in the face of higher costs as they freely return to their pre-pandemic lives. CHEF currently lands a Zacks Rank #1 (Strong Buy) and its shares are up 10% in 2022.
W.R. Berkley Corporation (WRB - Free Report) is an insurance holding company. Part of W.R. Berkley’s core focus is insurance for businesses, high-value homes, vehicles, and beyond. The company’s revenue surged 17% in 2021 and its outlook is stellar amid the rising rate environment. WRB topped our Q3 estimates on October 24 and raised its guidance to help it capture a Zacks Rank #1 (Strong Buy). W.R. Berkley shares have climbed 35% in 2022 to hit new highs Monday, which is part of a stellar decade-plus run.
Enphase Energy, Inc. (ENPH - Free Report) is a solar energy firm that’s thrived as one of largest makers of microinverter-based solar and battery systems in the world. Enphase offers investors tons of growth runway given how important inverters are within the booming solar industry. Enphase topped Zacks estimates on October 25 and raised its guidance once again even as the economy slows. ENPH lands a Zacks Rank #2 (Buy) right now and it has surged 65% in 2022, with it racing to return to its highs once again.
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3 Top-Ranked Momentum Stocks to Buy for November and Beyond
Today’s episode of Full Court Finance at Zacks explores the recent stock market rebound and the broader earnings and interest rate picture as the calendar turns to November. The episode then dives into three highly-ranked Zacks stocks that have posted double-digit climbs in 2022 and recently popped after topping estimates and providing upbeat guidance.
The market has bounced back since the start of October after it ended the first three quarters of the year down roughly 25%. The S&P 500 is up about 8% since then, with all three major indexes on track for monthly gains as Wall Street decided it was time to buy beaten-down stocks.
In order to extend the current rally, Wall Street will likely need to see the earnings picture stabilize to help mark a bottom for the current declining EPS picture. Unfortunately, the reports from Amazon and others showcased that even the technology titans are not immune from the economic forces dragging down spending and profits.
Jay Powell and the Fed also remain top-of-mind. Traders are still betting heavily that the Fed raises its core interest rate by 0.75%, but there is less conviction than there was just a few weeks ago.
The Fed’s two-day FOMC meeting ends on November 2. If the Fed takes its foot off the gas, the market could be able to sustain the recent momentum since a ton of the earnings drop and higher rates are already priced in. Plus, history is on the side of the bulls as we enter the midterms considering that the S&P 500 has climbed during the year period following every midterm election since 1942, averaging a 15% return.
Still, given the continued uncertainty on the earnings and rate fronts, investors might want to buy stocks that are bucking market trends and proving upbeat guidance amid all the headwinds. The three stocks we explore today have done just that and crushed the market in 2022.
The Chefs' Warehouse, Inc. (CHEF - Free Report) is a top distributor of specialty food products in the U.S. and Canada, with a focus on the higher-end side of the dining scene. The Chefs' Warehouse topped Q3 estimates on October 26 and raised its 2022 guidance with high-income consumers still spending heavily in the face of higher costs as they freely return to their pre-pandemic lives. CHEF currently lands a Zacks Rank #1 (Strong Buy) and its shares are up 10% in 2022.
W.R. Berkley Corporation (WRB - Free Report) is an insurance holding company. Part of W.R. Berkley’s core focus is insurance for businesses, high-value homes, vehicles, and beyond. The company’s revenue surged 17% in 2021 and its outlook is stellar amid the rising rate environment. WRB topped our Q3 estimates on October 24 and raised its guidance to help it capture a Zacks Rank #1 (Strong Buy). W.R. Berkley shares have climbed 35% in 2022 to hit new highs Monday, which is part of a stellar decade-plus run.
Enphase Energy, Inc. (ENPH - Free Report) is a solar energy firm that’s thrived as one of largest makers of microinverter-based solar and battery systems in the world. Enphase offers investors tons of growth runway given how important inverters are within the booming solar industry. Enphase topped Zacks estimates on October 25 and raised its guidance once again even as the economy slows. ENPH lands a Zacks Rank #2 (Buy) right now and it has surged 65% in 2022, with it racing to return to its highs once again.