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3 Strong Buy-Ranked Momentum Stocks For July 9th

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Every day at Zacks, our ranking system is used to constantly pick out and order stocks from #1 (Strong Buys) down to #5 (Strong Sells). Today there were a few stocks that were added to the group top ranked stocks, and several had high momentum style scores to go along with their top Zacks Ranking.

Below are three of these new top Zacks Rank stocks that have been on a roll lately, and have earned themselves at least a B for their momentum style score:

Dave& Buster’s Entertainment Inc. (PLAY - Free Report)

Headquartered in Dallas, Texas, Dave & Buster’s Entertainment Inc. is an owner and operator of venues in North America that combine both dining and entertainment. Dave & Buster’s offers customers the opportunity to “Eat Drink Play and Watch” all in one location. The eat and drink aspects are offered through a full menu of American new gourmet entrees, appetizers, and a selection of alcoholic and non-alcoholic beverages. The second half of the saying, play and watch, are offered through an assortment of entertainment attractions centered on arcade and classic games, in addition to watching live sports and other popular televised events.

In short, Dave & Buster’s has been enjoying great success in recent months, both in regards to its business and the company’s stock. The company’s stock is up nearly 13% year-to-date, and there are several signs that show the rest of the year holds great potential. PLAY has an A for its momentum and growth style scores, and a great deal of positive EPS estimate revision activity. For the current year there have been 5 analysts in just the last 60 days who have raised their estimates, and the projected EPS growth for this year is 19.21%. Add in a strong net margin of 7.86%, and projected sales growth of 13.13% and it is clear this company is doing the right things.

 

DAVE&BUSTRS ENT Price and EPS Surprise

DAVE&BUSTRS ENT Price and EPS Surprise | DAVE&BUSTRS ENT Quote

Aside from being a Zacks Rank #1 (Strong Buy) stock, PLAY also had a great earnings report, posting a beat on earnings and over 3% comparable store sales growth. The company also raised its guidance for the year and announced a share buyback program that will be put in place in the coming quarters. With all of these factors behind it, Dave & Buster’s Entertainment Inc. has great potential to continue the strong performance it has been producing.

 

United Natural Foods (UNFI - Free Report)

A leading independent national distributor of natural foods and related products in the US, United Natural Foods is the primary supplier to the majority of its customers, offering high-quality natural products. These products consist of groceries and general merchandise, nutritional supplements, bulk and service products, personal care items, perishables and frozen foods. The company has an A for its value, growth, and momentum scores, and earning a Zacks Rank #1 (Strong Buy), this is a stock that warrants investor attention.

With a P/E ratio of 17.22, a price to sales ratio if just .26, and a cash flow per share of $4.14 that almost doubles the industry average, the stock has solid value. It also has solid growth figures, such as a sales to assets ratio of 3.34 and a projected sales growth figure 3.55%. UNFI has also seen a huge amount of positive EPS estimate revision too. For the current quarter, there have been 8 upward revisions in the last 7 days, for the current year there have been 10 upward revisions in the last 7 days, and for next year there have been 9 upward revisions in the last 7 days. The current year EPS estimate has jumped an impressive $0.14, from $2.37 up to $2.51.

 

With a Zacks Rank #1 (Strong Buy), and 3 A style scores, it’s clear how strong of a stock UNFI is, and it has a great chance to continue its recent positive stretch.

 

Union Bankshares Corporation

The Union Bankshares Corporation is a holding company for Union First Market Bank, operating in two segments, community bank and mortgage. The banks offer a wide range of banking and related financial services including checking, savings, certificates of deposit and other depository services, discount brokerage services, and a variety of loans. Armed with a Zacks Rank #1 (Strong Buy) and being a part of an industry that ranks in the top 15% of all industries, UBSH is another strong stock that warrants consideration for investment.

Though its momentum style score is a B, UBSH has been on a roll of its own lately. In the last 12 weeks the stock has seen a 15.33% upward price movement, and it too has seen a solid amount of positive EPS estimate revision. For both the current year and current quarter there have been 3 upward revisions for each in the last 60 days. The current quarter has projected EPS growth of 12.96%, and the current year’s projection is 9.17%. In fact, the current year’s EPS estimate has jumped $0.10 in just the last 60 days, from $1.53 up to $1.63.

 

With its recent momentum, a top Zacks Rank, and even a growing dividend being thrown into the mix, UBSH is a bank stock that’s been on a roll as of late, and should definitely be on the radar of investors.

 

Bottom Line

Though they were just added to the list of Zacks Rank #1 (Strong Buy) stocks today, the three stocks above have been on a roll lately, and each has several factors behind it that point to a continuation of these recent successes. As we head toward the second half of 2016, these stocks will be looking to continue their positive movements upwards and finish the year by bringing some profits to their investors. For those who haven’t already, investors should consider PLAY, UNFI, and UBSH to their portfolios to get a share of the potential profits in the remaining half of the year.

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