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5 Winning Stocks Halfway Through Q4

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We are halfway through the fourth quarter of 2019 and markets have been performing quite well. Major benchmarks are reaching fresh highs, thanks to rise in optimism on the trade front and strong third-quarter earnings results.

Given such positives let’s have a look at five stocks that have performed well halfway through the fourth quarter and are poised to grow further.

So Far in Q4

Major benchmarks have been performing well since the beginning of October and stocks have closed higher in most of the trading sessions. The S&P 500 has hit nearly 20 new highs so far this year, two of them in November itself, while the Dow Jones crossed the coveted 28,000 mark on Nov 15.

Major factors that helped the benchmarks soar halfway through the fourth quarter are progress in the U.S.-China trade deal, Fed Chairman Jerome Powell’s optimism over U.S. economic strength and stronger-than-expected third-quarter corporate earnings.

The prolonged trade tiff between the United States and China has been a concern, but since the beginning of fourth quarter several positive developments on the trade front have lifted investors’ sentiments. Both economic giants have agreed to sign a phase one deal soon. Further, America has halted tariffs that were scheduled in October.

Additionally, Powell has expressed optimism about the U.S. economy and cited that “sustained expansion of economic activity, a strong labor market, and inflation near our symmetric 2%” will help the economy grow at a solid pace. Moreover, the third rate cut by the Fed in October has lowered borrowing costs on mortgages and several other loans, boosting home sales and in turn the broader economy.

What’s more, majority of the companies that have reported their third-quarter earnings have come out with positive results despite prevailing trade tensions and global economic slowdown.  As of Nov 8, 447 S&P 500 companies have reported results with 72.5% beating EPS estimates and 57.9% surpassing on revenues. (For more details: Were Q3 Earnings Estimates Too Low?)

5 Winning Stocks

Given the positive progress in the trade front, stable economic growth and strong third-quarter earnings, the stock market has scaled north so far in the fourth quarter. We have thus selected five stocks that have performed well during the aforesaid period and have the potential to gain further in the near future. These stocks flaunt a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

comScore, Inc. (SCOR - Free Report) is a publicly-traded company that operates as an information and analytics company that measures audiences, consumer behavior, and advertising across media platforms worldwide. The company’s expected earnings growth rate for the current year is more than 100% against the industry’s estimated earnings growth of 1.1%. The Zacks Consensus Estimate for its current-year earnings has moved up 11.6% over the past 60 days.

comScore has outperformed the Business - Services industry so far in the fourth quarter (+103.6% vs +5.9%).

 

 

Communications Systems, Inc. (JCS - Free Report) is a publicly traded company that manufactures and sells connectivity infrastructure products for broadband and voice communications worldwide. The company’s expected earnings growth rate for the current quarter is more than 100% against the industry’s estimated earnings decline of 6%. The Zacks Consensus Estimate for its current-year earnings has moved up 87.5% over the past 60 days.

Communications Systems has outperformed the Communication - Components industry so far in the fourth quarter (+61.7% vs -5.2%).

 

 

Vista Outdoor Inc. (VSTO - Free Report) is a publicly traded company that designs, manufactures and markets consumer products for outdoor sports and recreation markets worldwide. The company’s expected earnings growth rate for the current year is 14.3% against the industry’s estimated earnings growth of 3.7%. The Zacks Consensus Estimate for its current-year earnings has moved up 23.1% over the past 60 days.

Vista Outdoor has outperformed the Leisure and Recreation Products industry so far in the fourth quarter (+48.4% vs +8.9%).

 

 

Forterra, Inc. (FRTA - Free Report) is a publicly traded company that manufactures and sells pipe and precast products in the United States, Canada and Mexico. The company’s expected earnings growth rate for the current quarter is 59.3% against the industry’s estimated earnings decline of 18.1%. The Zacks Consensus Estimate for its current-year earnings has moved up 76.2% over the past 60 days.

Forterra has outperformed the Building Products - Concrete and Aggregates industry so far in the fourth quarter (+55.6% vs -3.9%).

 

 

DexCom, Inc. (DXCM - Free Report) is a publicly traded medical device company that designs, develops and sells continuous glucose monitoring (CGM) systems worldwide. The company’s expected earnings growth rate for the current year is more than 100% against the industry’s estimated earnings growth of 10.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 50% over the past 60 days.

DexCom has outperformed the Medical - Instruments industry so far in the fourth quarter (+43.3% vs +6.7%).

 

 

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