We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Top 5 Growth Stocks for June to Tap Wall Street Rally
Read MoreHide Full Article
U.S. stock markets have been witnessing a broad-based rally for the past one and a half month. Last week, Wall Street posted several new records. The Dow, the S&P 500 and the Nasdaq Composite registered their registered winning run for the third, fifth and eighth consecutive weeks, respectively.
The S&P 500 and the Nasdaq Composite posted their best weekly performance since March and intraday highest level since April 2022. Year to date, the Dow, the S&P 500 and the Nasdaq Composite have surged 3.5%, 14.9% and 30.8%, respectively.
Wall Street saw a sharp broad-based rally as market participants ignored Fed Chairman’s rate hike warning. A series of favorable economic data released this week, especially, inflation data, has bolstered investors’ confidence that the central bank is approaching the end of its tight monetary control regime.
Our Top Picks
At this stage, it will be prudent to invest in growth stocks with a favorable Zacks Rank. We have narrowed our search to five growth stocks that have solid upside left for 2023. These stocks have also witnessed positive earnings estimate revisions in the last 60 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.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Chipotle Mexican Grill Inc. (CMG - Free Report) has been benefiting from its strong comparable restaurant sales growth, digital efforts, Chipotlane add-ons and menu innovation. Moreover, strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margin have been driving CMG’s performance.
CMG reported solid benefits from Project Square One with improvements, including throughput on the frontline, on-time and accuracy on the digital make line. CMG also emphasizes smarter pickup times to boost growth.
Chipotle Mexican Grill has an expected revenue and earnings growth rate of 14.1% and 33.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6% over the last 60 days.
ServiceNow Inc. (NOW - Free Report) has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. As businesses, government agencies and others continue to shift their infrastructure to cloud, NOW is poised to boost the uptake of its Now platform.
ServiceNow had 1,682 total customers with more than $1 million in annual contract value at the end of the first quarter. NOW’s new solutions — Automated service suggestions, Service Request Playbook and Workplace Scenario Planning — are helping it win new customers. This is driving subscription revenues. Strategic alliances with the likes of Microsoft remain tailwinds.
ServiceNow has an expected revenue and earnings growth rate of 21.6% and 26.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.7% over the last 60 days.
Palo Alto Networks Inc. (PANW - Free Report) has been benefiting from continuous deal wins and the increasing adoption of PANW’s next-generation security platforms, attributable to the rise in the remote work environment and the need for stronger security.
Growing traction in Prisma and Cortex offerings is acting as a tailwind. PANW continues to acquire new customers and increase wallet share with existing customers. Our estimates suggests that Palo Alto’s revenues will witness a CAGR of 21.1% through fiscal 2023-2025.
Palo Alto Networks has an expected revenue and earnings growth rate of 25.3% and 68.7%, respectively, for the current year (ending July 2023). The Zacks Consensus Estimate for current-year earnings has improved 5% over the last 30 days.
Celsius Holdings Inc. (CELH - Free Report) specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. CELH markets Celsius, the calorie burner, through its wholly-owned operating subsidiary, Celsius Inc. CELH sells its products through grocery, drug, convenience, club and mass, and health and fitness channels.
Celsius Holdings has an expected revenue and earnings growth rate of 70.4% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days.
Manhattan Associates Inc. (MANH - Free Report) is the global leader in providing supply-chain execution and optimization solutions. MANH develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations.
MANH offers Manhattan SCALE, a portfolio of logistics execution solutions that provide trading partner management, yard management, optimization, warehouse management, and transportation execution services. MANH also offers a set of enterprise and omnichannel solutions, which include enterprise and omnichannel solutions for stores. In addition, MANH also provides inventory optimization, planning, and allocation solutions.
Manhattan Associates has an expected revenue and earnings growth rate of 12.1% and 4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 25.9% over the last 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Top 5 Growth Stocks for June to Tap Wall Street Rally
U.S. stock markets have been witnessing a broad-based rally for the past one and a half month. Last week, Wall Street posted several new records. The Dow, the S&P 500 and the Nasdaq Composite registered their registered winning run for the third, fifth and eighth consecutive weeks, respectively.
The S&P 500 and the Nasdaq Composite posted their best weekly performance since March and intraday highest level since April 2022. Year to date, the Dow, the S&P 500 and the Nasdaq Composite have surged 3.5%, 14.9% and 30.8%, respectively.
Wall Street saw a sharp broad-based rally as market participants ignored Fed Chairman’s rate hike warning. A series of favorable economic data released this week, especially, inflation data, has bolstered investors’ confidence that the central bank is approaching the end of its tight monetary control regime.
Our Top Picks
At this stage, it will be prudent to invest in growth stocks with a favorable Zacks Rank. We have narrowed our search to five growth stocks that have solid upside left for 2023. These stocks have also witnessed positive earnings estimate revisions in the last 60 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.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Chipotle Mexican Grill Inc. (CMG - Free Report) has been benefiting from its strong comparable restaurant sales growth, digital efforts, Chipotlane add-ons and menu innovation. Moreover, strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margin have been driving CMG’s performance.
CMG reported solid benefits from Project Square One with improvements, including throughput on the frontline, on-time and accuracy on the digital make line. CMG also emphasizes smarter pickup times to boost growth.
Chipotle Mexican Grill has an expected revenue and earnings growth rate of 14.1% and 33.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6% over the last 60 days.
ServiceNow Inc. (NOW - Free Report) has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. As businesses, government agencies and others continue to shift their infrastructure to cloud, NOW is poised to boost the uptake of its Now platform.
ServiceNow had 1,682 total customers with more than $1 million in annual contract value at the end of the first quarter. NOW’s new solutions — Automated service suggestions, Service Request Playbook and Workplace Scenario Planning — are helping it win new customers. This is driving subscription revenues. Strategic alliances with the likes of Microsoft remain tailwinds.
ServiceNow has an expected revenue and earnings growth rate of 21.6% and 26.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.7% over the last 60 days.
Palo Alto Networks Inc. (PANW - Free Report) has been benefiting from continuous deal wins and the increasing adoption of PANW’s next-generation security platforms, attributable to the rise in the remote work environment and the need for stronger security.
Growing traction in Prisma and Cortex offerings is acting as a tailwind. PANW continues to acquire new customers and increase wallet share with existing customers. Our estimates suggests that Palo Alto’s revenues will witness a CAGR of 21.1% through fiscal 2023-2025.
Palo Alto Networks has an expected revenue and earnings growth rate of 25.3% and 68.7%, respectively, for the current year (ending July 2023). The Zacks Consensus Estimate for current-year earnings has improved 5% over the last 30 days.
Celsius Holdings Inc. (CELH - Free Report) specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. CELH markets Celsius, the calorie burner, through its wholly-owned operating subsidiary, Celsius Inc. CELH sells its products through grocery, drug, convenience, club and mass, and health and fitness channels.
Celsius Holdings has an expected revenue and earnings growth rate of 70.4% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days.
Manhattan Associates Inc. (MANH - Free Report) is the global leader in providing supply-chain execution and optimization solutions. MANH develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations.
MANH offers Manhattan SCALE, a portfolio of logistics execution solutions that provide trading partner management, yard management, optimization, warehouse management, and transportation execution services. MANH also offers a set of enterprise and omnichannel solutions, which include enterprise and omnichannel solutions for stores. In addition, MANH also provides inventory optimization, planning, and allocation solutions.
Manhattan Associates has an expected revenue and earnings growth rate of 12.1% and 4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 25.9% over the last 60 days.