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Stocks have seen a somewhat muted performance in September so far, historically a weaker market period.
However, there have been several stocks bucking the trend, providing outsized gains to investors, including Consolidated Water Co. (CWCO - Free Report) , Vistra (VST - Free Report) , and Applied Industrial Technologies (AIT - Free Report) .
All three have posted market-beating returns in September, outperforming the S&P 500 handily. In addition, all three have enjoyed positive earnings estimate revisions, indicating optimism among analysts.
For those interested in momentum, let’s take a closer look at each.
Consolidated Water Co.
Consolidated Water, a current Zacks Rank #2 (Buy), is involved in developing and operating sea-water desalination plants and water distribution systems in water-scarce areas. The company’s earnings outlook has improved across the board in a big way.
Image Source: Zacks Investment Research
CWCO shares have seen bullish activity following back-to-back releases, with results impressing the market. Regarding the most recent quarter, the company posted a sizable 110% EPS beat and reported revenue nearly 50% ahead of expectations.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Vistra
Vistra is a holding company that engages in the provision of electricity and power generation. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations increasing across nearly all timeframes.
Income-focused investors could find VST shares attractive, currently yielding a solid 2.4% annually paired with a payout ratio sitting at 56% of the company’s earnings. Impressively, the company has upped its payout ten times over the last five years, translating to a 13% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
In addition, VST shares aren’t stretched regarding valuation given its growth trajectory, with earnings forecasted to soar 205% on 50% higher revenues in its current year. Shares trade at a 10.9X forward earnings multiple, beneath the 11.4X five-year median.
Applied Industrial Technologies
Applied Industrial Technologies, a current Zacks Rank #2 (Buy), distributes value-added industrial products, including engineered fluid power components, bearings, specialty flow control solutions, power transmission products, and miscellaneous industrial supplies.
Like CWCO, better-than-expected quarterly results helped fuel shares; in its latest release in early August, AIT exceeded the Zacks Consensus EPS Estimate by more than 7% and reported revenue 4% ahead of expectations.
Image Source: Zacks Investment Research
In addition, the company’s 25.6% trailing twelve-month return on equity (ROE) is certainly worth a highlight, reflecting a higher efficiency level in generating profits from existing assets relative to peers.
Image Source: Zacks Investment Research
Bottom Line
Relative strength focuses on stocks that have performed well compared to the market as a whole or another relevant benchmark. And by targeting those displaying this favorable price action, investors can find themselves in positive market trends where buyers are in control.
That’s precisely what all three stocks above – Consolidated Water Co. (CWCO - Free Report) , Vistra (VST - Free Report) , and Applied Industrial Technologies (AIT - Free Report) – have done, providing outsized returns to investors over the near term.
In addition to bullish price action, all three have enjoyed positive earnings estimate revisions, providing fuel for shares to continue climbing.
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These 3 Top-Ranked Stocks Have Been Red-Hot
Stocks have seen a somewhat muted performance in September so far, historically a weaker market period.
However, there have been several stocks bucking the trend, providing outsized gains to investors, including Consolidated Water Co. (CWCO - Free Report) , Vistra (VST - Free Report) , and Applied Industrial Technologies (AIT - Free Report) .
All three have posted market-beating returns in September, outperforming the S&P 500 handily. In addition, all three have enjoyed positive earnings estimate revisions, indicating optimism among analysts.
For those interested in momentum, let’s take a closer look at each.
Consolidated Water Co.
Consolidated Water, a current Zacks Rank #2 (Buy), is involved in developing and operating sea-water desalination plants and water distribution systems in water-scarce areas. The company’s earnings outlook has improved across the board in a big way.
Image Source: Zacks Investment Research
CWCO shares have seen bullish activity following back-to-back releases, with results impressing the market. Regarding the most recent quarter, the company posted a sizable 110% EPS beat and reported revenue nearly 50% ahead of expectations.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Vistra
Vistra is a holding company that engages in the provision of electricity and power generation. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations increasing across nearly all timeframes.
Income-focused investors could find VST shares attractive, currently yielding a solid 2.4% annually paired with a payout ratio sitting at 56% of the company’s earnings. Impressively, the company has upped its payout ten times over the last five years, translating to a 13% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
In addition, VST shares aren’t stretched regarding valuation given its growth trajectory, with earnings forecasted to soar 205% on 50% higher revenues in its current year. Shares trade at a 10.9X forward earnings multiple, beneath the 11.4X five-year median.
Applied Industrial Technologies
Applied Industrial Technologies, a current Zacks Rank #2 (Buy), distributes value-added industrial products, including engineered fluid power components, bearings, specialty flow control solutions, power transmission products, and miscellaneous industrial supplies.
Like CWCO, better-than-expected quarterly results helped fuel shares; in its latest release in early August, AIT exceeded the Zacks Consensus EPS Estimate by more than 7% and reported revenue 4% ahead of expectations.
Image Source: Zacks Investment Research
In addition, the company’s 25.6% trailing twelve-month return on equity (ROE) is certainly worth a highlight, reflecting a higher efficiency level in generating profits from existing assets relative to peers.
Image Source: Zacks Investment Research
Bottom Line
Relative strength focuses on stocks that have performed well compared to the market as a whole or another relevant benchmark. And by targeting those displaying this favorable price action, investors can find themselves in positive market trends where buyers are in control.
That’s precisely what all three stocks above – Consolidated Water Co. (CWCO - Free Report) , Vistra (VST - Free Report) , and Applied Industrial Technologies (AIT - Free Report) – have done, providing outsized returns to investors over the near term.
In addition to bullish price action, all three have enjoyed positive earnings estimate revisions, providing fuel for shares to continue climbing.