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4 Growth Stocks to Buy Ahead of a Strong Year-End Rally
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This week may have been topsy-turvy for the U.S. stock market, but it followed the best five-week stretch for the broader S&P 500 since 2020, per Dow Jones Market Data.
Keeping in mind the magnitude of the rally, it’s evident that there has been some profit-taking this week, leading to a pullback. However, historically, whenever the S&P 500 has registered five weeks of gains, the index has invariably moved northward in the next six-month period.
December, anyhow, has been a favorable month for the stock market, with solid gains widely expected during the latter half of the month. This is because of the Santa Claus rally when the stock market traditionally scales northward in the last five trading sessions of the month.
Moreover, December has always seen solid gains following strong returns in November. Ryan Detrick, Carson Group’s chief market strategist, had said that the S&P 500, on average, jumped 1.8% monthly after growth of 8% or more in the previous month since 1950. The S&P 500, by the way, had already jumped 8.9% in November.
The Dow Jones Market Data further added that if the S&P 500 scales up more than 15% till November, then the index is set to finish December in the positive territory 75% of the time.
Having said that, seasonal trends may not necessarily determine the future stock price movement. But much of the recent strength in the stock market can be attributed to the Federal Reserve’s initiative to curtail its aggressive interest rate hike program amid signs of cooling inflation and a resilient U.S. economy.
Increasing signals from other parts of the world, including the European Central Bank and the Bank of England, that they are done with hiking interest rates also buoyed investors’ sentiment in recent times.
Thus, with things looking up for the stock market shortly amid a Fed rate hike pause and encouraging seasonal trends, investing in sound growth stocks like Beacon Roofing Supply (BECN - Free Report) , TopBuild (BLD - Free Report) , Journey Medical (DERM - Free Report) , and Shift4 Payments (FOUR - Free Report) seems prudent.
Beacon Roofing Supply is the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products. Beacon Roofing Supply currently has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 9.8% over the past 60 days. BECN’s expected earnings growth rate for the current year is 8.2%.
TopBuild is an installer and distributor of insulation and other building products to the U.S. construction industry. TopBuild currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 5.2% over the past 60 days. BLD’s expected earnings growth rate for the current year is 14%.
Journey Medical is a commercial-stage pharmaceutical company. Journey Medical currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 87.5% over the past 60 days. DERM’s expected earnings growth rate for the current year is 90.5%.
Shift4 Payments is a provider of integrated payment processing and technology solutions. Shift4 Payments currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.7% over the past 60 days. FOUR’s expected earnings growth rate for the current year is 110.1%.
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4 Growth Stocks to Buy Ahead of a Strong Year-End Rally
This week may have been topsy-turvy for the U.S. stock market, but it followed the best five-week stretch for the broader S&P 500 since 2020, per Dow Jones Market Data.
Keeping in mind the magnitude of the rally, it’s evident that there has been some profit-taking this week, leading to a pullback. However, historically, whenever the S&P 500 has registered five weeks of gains, the index has invariably moved northward in the next six-month period.
December, anyhow, has been a favorable month for the stock market, with solid gains widely expected during the latter half of the month. This is because of the Santa Claus rally when the stock market traditionally scales northward in the last five trading sessions of the month.
Moreover, December has always seen solid gains following strong returns in November. Ryan Detrick, Carson Group’s chief market strategist, had said that the S&P 500, on average, jumped 1.8% monthly after growth of 8% or more in the previous month since 1950. The S&P 500, by the way, had already jumped 8.9% in November.
The Dow Jones Market Data further added that if the S&P 500 scales up more than 15% till November, then the index is set to finish December in the positive territory 75% of the time.
Having said that, seasonal trends may not necessarily determine the future stock price movement. But much of the recent strength in the stock market can be attributed to the Federal Reserve’s initiative to curtail its aggressive interest rate hike program amid signs of cooling inflation and a resilient U.S. economy.
Increasing signals from other parts of the world, including the European Central Bank and the Bank of England, that they are done with hiking interest rates also buoyed investors’ sentiment in recent times.
Thus, with things looking up for the stock market shortly amid a Fed rate hike pause and encouraging seasonal trends, investing in sound growth stocks like Beacon Roofing Supply (BECN - Free Report) , TopBuild (BLD - Free Report) , Journey Medical (DERM - Free Report) , and Shift4 Payments (FOUR - Free Report) seems prudent.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
Beacon Roofing Supply is the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products. Beacon Roofing Supply currently has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 9.8% over the past 60 days. BECN’s expected earnings growth rate for the current year is 8.2%.
TopBuild is an installer and distributor of insulation and other building products to the U.S. construction industry. TopBuild currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 5.2% over the past 60 days. BLD’s expected earnings growth rate for the current year is 14%.
Journey Medical is a commercial-stage pharmaceutical company. Journey Medical currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 87.5% over the past 60 days. DERM’s expected earnings growth rate for the current year is 90.5%.
Shift4 Payments is a provider of integrated payment processing and technology solutions. Shift4 Payments currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.7% over the past 60 days. FOUR’s expected earnings growth rate for the current year is 110.1%.