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S&P Reclaims 3,000: Buy 6 Stocks With More Than 25% Growth

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In the latest market rally driven by hopes surrounding potential coronavirus vaccines and reopening of the economy, the S&P 500 reclaimed its 3,000 level and is poised to rise further. Notably, the index has risen about 37% from its March lows and is about 11% below its record February high.

In particular, the latest bouts of data indicate that economic activity has started to pick up and Americans have become optimistic. This is especially true as consumer confidence stabilized in May as depicted by the Conference Board’s index. Another survey by the University of Michigan’s consumer sentiment index shows that consumer sentiment rose to 73.7 in early May from 71.8 in April as fiscal stimulus measures improved consumers’ finances and widespread price discounting boosted their buying attitude.

Additionally, a raft of central bank and government stimulus should continue to fuel strength. The central bank has plenty of ammunition to rescue the economy from a deep slowdown, indicating a potential recovery in the second half of the year. The Fed would expand existing lending programs or start new ones if required.

However, trade tensions between China and the United States have resurfaced lately and could create some obstacles to the new bull run.

In such a scenario, we have tried to screen some solid stocks that trade on the S&P 500 index with the help of the Zacks Stock Screener. Our parameters include a Zacks Rank #1 (Strong Buy) or 2 (Buy), Growth Score of A or B, estimated double-digit earnings growth for this year and a top-ranked Zacks industry. You can see the complete list of today’s Zacks #1 Rank stocks here.

Newmont Corporation (NEM - Free Report)

This Zacks Ranked #2 company is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. It has an estimated earnings growth of 82.6% for this year and a market cap of $50.6 billion. The stock has a Growth Score of B and falls under a top-ranked industry (placed at the top 8% of 250+ industries in the Zacks universe).

Vertex Pharmaceuticals Incorporated (VRTX - Free Report)

This Zacks Ranked #1 company is focused on the discovery, development and commercialization of small molecule drugs targeting serious diseases. It has an estimated earnings growth of 65.1% for this year and a market cap of $73.9 billion. The stock has a Growth Score of A and falls under the top-ranked industry (top 6%).

BristolMyers Squibb Company (BMY - Free Report)

This Zacks #2 Rank company is one of the leading global specialty biopharmaceutical companies focused on the development of treatments targeting serious diseases. With a market cap of $137.5 billion, the stock has an estimated earnings growth of 30.9% for this year and belongs to a top-ranked industry (top 4%). BristolMyers sports a Growth Score of A.

MarketAxess Holdings Inc. (MKTX - Free Report)

This Zacks Ranked #1 company is a leading multi-dealer trading platform that offers institutional investors access to global liquidity in products like U.S. high-grade corporate bonds, emerging markets and high-yield bonds, European bonds, U.S. agency bonds, credit derivatives and other fixed-income securities. With a market cap of $18.3 billion, the stock has an estimated earnings growth of 29.8% for this year and belongs to a top-ranked industry (top 8%). It has a Growth Score of B.

ServiceNow Inc. (NOW - Free Report)

This Zacks Ranked #2 company provides cloud computing services that automate digital workflows to accelerate enterprise IT operations. It has an estimated earnings growth of 27.7% for this year and a market cap of $74 billion. The stock has a Growth Score of A and falls under a top-ranked industry (top 31%).

Applied Materials Inc. (AMAT - Free Report)

This Zacks Ranked #2 company is one of the world’s largest suppliers of equipment for the fabrication of semiconductor, flat panel liquid crystal displays (LCDs), and solar photovoltaic (PV) cells and modules. With amarket cap of $49.9 billion, the stock has an estimated earnings growth of 25.3% for fiscal year (ending October 2020) and belongs to a top-ranked industry (top 31%). It has a Growth Score of B.

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