Wall Street has been on a wild ride over the past three months, pushing the major indices into the red for the year. This is primarily thanks to global trade worries, threats of inflation, concerns over speedy rates hike, ongoing political turmoil in Washington and geopolitical tensions.
However, many stocks survived the market turmoil thanks to their business practices and growth prospects. Additionally, solid corporate earnings and enticing fundamentals like rising estimates have made these stocks winning bets in the downtrodden three-month period. Notably, a strong earnings estimate revision trend indicates the company’s strength and higher probability of outperforming the market compared to its peers.
Total Q1 earnings for the 78.5% market capitalization of the S&P 500 that have reported results so far are up 24% from the same period last year on 9.5% higher revenues, with 78.4% beating EPS estimates and 75.8% beating revenue estimates. Though the revenue beat is tracking below the preceding quarter’s level, earnings are significantly higher than the same group of companies in the other recent periods. Earnings and revenue growth also represent acceleration from all other recent periods.
Given this, we have highlighted five stocks that have easily led the way higher over the past three months and will likely continue to do so given their Zacks Rank #1 (Strong Buy) and #2 (Buy).
Tenet Healthcare Corporation (THC - Free Report)
This Texas-based is a multinational investor-owned healthcare services company. Shares of THC surged 71% in the past three months driven by risk-off trading that compelled investors to move toward a defensive stock like THC. Robust earnings, wherein the company came up with a huge positive surprise of 2,950% and rising earnings estimates added to the strength. The stock saw solid earnings estimate revision of 24 cents over the past month for this year and has an expected growth rate of 43.21%. It has a Zacks Rank #2 and a VGM Score of A. Further, it belongs to a top-ranked Zacks industry (top 29%).
WildHorse Resource Development Corporation (WRD - Free Report)
This Texas-based oil and natural gas company is focused on the acquisition, exploration, development and production of oil, natural gas and NGL. Its shares soared about 60% over the past three months. Most of the gains came from rising earnings estimates, which indicate that the company is well poised for the coming months. The Zacks Consensus Estimate for 2018 has moved up by 56 cents over the past 90 days, representing year-over-year growth of 288.37%. Going into its earnings announcement on May 9, WildHorse Resource also saw its earnings estimate moving up from 29 cents to 34 cents for the first quarter. It has a Zacks Rank #1 and a VGM Score of B. Further, WRD belongs to a top-ranked Zacks industry (top 40%). You can seethe complete list of today’s Zacks #1 Rank stocks here.
SolarEdge Technologies Inc. (SEDG - Free Report)
This Israel-based company is a designer, developer, manufacturer and seller of direct current optimized inverter systems for solar photovoltaic (PV) installations in Israel, Europe, the United States and internationally. The stock is maintaining its surge following its robust Q4 and 2017 earnings results in mid Feb, gaining 57% in the past three months. It saw impressive earnings estimate revision of 72 cents over the past three months for this year and 30 cents for the first quarter 2018 (result is expected on May 9). SolarEdge currently has a Zacks Rank #2 and a VGM Score of B. If hails for a top-ranked Zacks industry (top 20%).
Rocky Brands Inc. (RCKY - Free Report)
This Ohio-based company is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky Outdoor Gear, Georgia Boot, Durango, Lehigh, and the licensed brand, Dickie. The stock gained 57% in the past three-month period on an improving earnings outlook. For this year, RCKY saw solid earnings estimate revision of 33 cents in the same time frame and has an estimated growth rate of 29.31%. It has a Zacks Rank #1 and a VGM Score of B. Further, the stock belongs to a top-ranked Zacks industry (top 37%).
Willdan Group Inc. (WLDN - Free Report)
This California-based company is a provider of professional technical and consulting services to utilities, private industry, and public agencies at all levels of government. The stock is also up about 46% on strong earnings estimate revision. The Zacks Consensus Estimate for 2018 has moved up from $1.41 to $1.57 over the past three months and the expected growth rate is 3.05%. Additionally, the stock, which belongs to a top-ranked Zacks industry (top 12%), has a Zacks Rank #2 and a VGM Score of A.
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