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Lands End (LE) and JD.com (JD) Are Aggressive Growth Stocks

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As the aggressive growth stock strategist at Zacks Investment Research Brian Bolan usually looks for stocks that have a strong Zacks Style Score for Growth and a weak Style Score for Value. This week he has two stocks that have something that he never received in any schooling, straight A’s.

Land’s End (LE - Free Report) is a Zacks Rank #1 (Strong Buy) and it has straight A’s in the Zacks Style Scores. Normally Brian would focus on Growth stocks but he often gets the question why not look at a stock that has a strong Value score and a strong Growth score as well. After adjusting his screen he found Land’s End (LE - Free Report) which is a retailer that is primarily catalog based.

In the video Brian takes a look at the revenue contraction that the company will show for this year and questions how the stock could even have an A for Growth. Next year also shows an anemic 2.2% growth rate. Th company also trades at a significant multiple of 45x which makes him also wonder why the stock gets such a high style score for Value as well. In the end, Brian points out that this time around, LE might not be the type of stock that he would want right now.

Next up is JD.com (JD - Free Report) Which is also a Zacks Rank #1 (Strong Buy) also has straight A’s in the Zacks Style Scores. JD.com (JD - Free Report) is an internet based supply chain commerce enabler for China. Brian notes in the video that he normally avoids all Chinese stocks as the potential for fraud is significant. He directly states that JD and some of the other larger entities are very likely not frauds, but the smaller companies have a much great chance of being fraudulent.

This company is also a beneficiary of the Chinese Communist Party’s recent stimulus package. The government in China announced a stimulus package that would end up supporting Chinese stocks with some $500B in buying power. There are also calls for a second stimulus to be announced in the near term.

Just as in all of his Aggressive Growth Zacks Rank Buy videos, Brian reviews the earnings history, earnings estimates, growth projections and valuation before taking a look at the chart.


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