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Ring in 2019 With These 7 Solid Growth Stocks in Your Kitty

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Stocks have been on a topsy-turvy ride in 2018, thanks to the U.S.-China trade war, uncertainty over Brexit, budget concern in Italy, a stronger dollar that hurt emerging markets, tech weakness and volatile oil prices due to ongoing geopolitical tensions. Moreover, the U.S. Federal Reserve’s hawkish stance related to interest rate hikes, and fears of a prolonged federal government shutdown over the U.S-Mexico border security funding issue weighed on the stock market.

Investors fear that several of these headwinds will continue to drag down stock performance in 2019 as well. Notably, several companies have lowered their 2019 outlook factoring in the impact of the tariffs imposed as a result of the trade war.

The increase in tariff from 10% to 25% (on hold till Mar 1, 2019) on $200 billion worth of Chinese imports, if imposed, will have a significant impact on companies’ profits. Besides, with the tariff being passed on to consumers in the form of higher prices, it will also take a toll on their spending.

Moreover, the impact of the tax cut has already started to fade and the back-to-back rate hikes by Fed have also not gone down well with investors. The Fed recently hiked interest rates for the fourth time this year and projected two hikes for 2019.  However, it did strike a dovish note by reducing projected rate hikes from three to two.

Although it is not clear how 2019 will unfold for the markets, the uncertain trade war truce and enhanced labor market may turn things around on the bourses.

Per Goldman Sachs, robust wage growth and recent declines in oil price are likely to sustain higher disposable income and boost spending in the coming year.

Picking the Right Stocks

Growth stocks are fundamentally strong businesses that ensure solid portfolio returns. The Zacks Growth Score comes handy while picking such stocks. Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer good investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

Here are seven solid bets for the coming year.

Crocs (CROX - Free Report) is a provider of innovative casual footwear for men, women and children. The company delivered average positive earnings surprise of 126.3% in the trailing four quarters and has a long-term earnings growth rate of 15%. The Zacks Consensus Estimate for fiscal 2019 earnings per share has increased 29.6% to $1.05 over the past 30 days.

Crocs, Inc. Price and Consensus

Crocs, Inc. Price and Consensus | Crocs, Inc. Quote

Hudson (HUD - Free Report) is a leading travel retail firm. The company came up with average positive earnings surprise of 63.56% in the trailing four quarters and has an estimated has a long-term earnings growth rate of 29.36%. The Zacks Consensus Estimate for fiscal 2019 earnings per share of a penny has remained unchanged over the past 30 days.

Hudson Ltd. Price and Consensus

Hudson Ltd. Price and Consensus | Hudson Ltd. Quote

The Habit Restaurants (HABT - Free Report) is operator and franchiser of fast casual restaurants under The Habit Burger Grill name. The company delivered average positive earnings surprise of 66.67% in the trailing four quarters and has long-term estimated earnings growth rate of 20%. The Zacks Consensus Estimate for fiscal 2019 earnings of 10 cents per share has remained stable over the past 30 days.

Tesla (TSLA - Free Report) is a designer, producer and seller of electric cars, solar energy generation systems and energy storage product. The company has a long-term earnings growth rate of 35% and delivered average positive earnings surprise of 155.62% in the trailing four quarters. The Zacks Consensus Estimate for fiscal 2019 earnings of $5.88 per share has increased 6.7% over the past 30 days.

Tesla, Inc. Price and Consensus

Tesla, Inc. Price and Consensus | Tesla, Inc. Quote

Vanda Pharmaceuticals (VNDA - Free Report) is a biopharmaceutical company focused on the development and commercialization of clinical-stage product candidates for central nervous system disorders. The company has a long-term earnings growth rate of 35%, and delivered average positive earnings surprise of 736.7% in the trailing four quarters. The Zacks Consensus Estimate for fiscal 2019 earnings of 60 cents per share has remained stable over the past 30 days.

Amedisys (AMED - Free Report) is a leading provider of healthcare services in the United States. The company has a long-term earnings growth rate of 18.76% and delivered average positive earnings surprise of 16.55% in the trailing four quarters. The Zacks Consensus Estimate for fiscal 2019 earnings of $4.04 per share has remained constant over the past 30 days.

Amedisys, Inc. Price and Consensus

Amedisys, Inc. Price and Consensus | Amedisys, Inc. Quote

Materialise(MTLS - Free Report) is a provider of additive manufacturing software and 3D printing services. The company delivered average four-quarter positive earnings surprise of 87.5% and has long-term earnings growth rate of 20%. The Zacks Consensus Estimate for fiscal 2019 earnings of 28 cents per share has remained unchanged over the past 30 days.

Materialise NV Price and Consensus

Materialise NV Price and Consensus | Materialise NV Quote

In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?

These 10 are painstakingly handpicked from over 4,000 companies covered by the Zacks Rank. They are our primary picks poised to outperform in the year ahead. Be among the first to see the new Zacks Top 10 Stocks >>



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