U.S. Markets closed

20 Stocks From Top 20 Industries to Double Your Money in 2020

Sweta Killa

Wall Street is soaring with the three major U.S. bourses hitting new all-time highs. This is primarily being driven by the primary U.S.-China deal, stronger-than-expected earnings reports, and a Federal Reserve rate cuts. Additionally, bouts of upbeat data especially on job and housing, which signal a healthier economy, have boosted investors’ confidence.

The bullish trend is likely to continue heading into 2020 though volatility and uncertainty will continue to show up due to election and the second phase of trade deal.

Against such a backdrop, it’s time to think big and set an investment goal that could double your money. The key to accomplish this task is to look for top-ranked stocks in top-ranked industries, which leverages the power of earnings estimate revisions.

How to Find the Top-Ranked Industries

The Zacks Industry Rank is determined by calculating the average Zacks Rank for each stock in the industry and then assigning a rank to it. For example, an industry with an average Zacks Rank of 1.6 is better than an industry with an average Zacks Rank of 2.3. So, the industry with a better average Zacks Rank would get a more favorable Zacks Industry Rank.

A top Zacks Industry Rank means that more stocks within that group are seeing upward earnings estimate revisions. Since an industry is a group of stocks in a similar business, this is the perfect way to size it up.

The Zacks Industry classification divides the business world into 16 sectors comprising 60 medium or M-level industries and 265 or X-level industries. We rank all 265s X-level industries based on the earnings outlook of the constituent companies into two groups: the top half (i.e., industries with the best average Zacks Rank) and the bottom half (the industries with the worst average Zacks Rank). The top 132 Zacks Ranked industries feature in the top 50% of all X-level industries, whereas the bottom 133 Zacks Ranked industries are in the bottom 50%.

Studies have shown that 50% of a stock's price movement can be attributed to its industry. In fact, an average stock in a strong group is likely to outperform a great stock in a poor group.

With the help of this process, firstly we have selected the top 20 industries and then we have narrowed down the stocks for each industry using some parameters. This includes a Zacks Rank #1 (Strong Buy) or 2 (Buy), VGM Score of A or B, and double-digit estimated growth rate for 2020.  

Here are the top 20 stocks from the 20 top-ranked industries for 2020:

Photronics Inc. PLAB

This is a leading worldwide manufacturer of photomasks. Its earnings are expected to grow 106.82% for the fiscal year (ending October 2020). With a market cap of $1.05 billion, Photronics carries a Zacks Rank #2 and has a VGM Score of A. It belongs to a Zacks industry (placed at the top 1% of 250+ industries).

Unifi Inc. UFI

Placing at the top 1% industry, Unifi is a global textile solutions provider and one of the world's leading innovators in manufacturing synthetic and recycled performance fibers. The stock has an estimated earnings growth rate of 584.6% for the fiscal year (ending June 2020) and has a market cap of $475.5 million. It sports a Zacks Rank #1 and has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hostess Brands Inc. TWNK

It is involved in developing, manufacturing, marketing, selling and distributing sweet goods primarily in the United States. With a market cap of $1.88 billion, the stock has an estimated earnings growth rate of 20.90% for this year and belongs to a favorable Zacks industry (top 4%). It has a Zacks Rank #2 and a VGM Score of B.

Lithia Motors Inc. LAD

With a market cap of $3.61 billion, Lithia Motors is one of the leading automotive retailers of new and used vehicles, and related services in the United States. Its earnings are expected to increase 13.51% for the next year. The stock has a Zacks Rank #1 and a VGM Score of A. Lithia Motors belongs to a favorable Zacks industry (in the top 4%).

Forestar Group Inc FOR

This real estate lot development company is engaged in the acquisition, entitlement, and development of infrastructure for single-family residential communities. With a market cap of $998.65 million, the stock has an estimated earnings growth rate of 20.25% for fiscal year (ending September 2020) and has a favorable Zacks Industry Rank (top 4%). It sports a Zacks Rank #1 and has a VGM Score of B.

American Outdoor Brands Corporation AOBC

It is a manufacturer and seller of firearms and accessory products for the shooting, hunting and outdoor enthusiast. American Outdoor Brands has an estimated earnings growth of 43.21% for fiscal year (ending April 2021) and has a market cap of $506.56 million. It has a Zacks Rank #2 and a VGM Score of A. The stock is placed at top 5% of the Zacks Industry Rank.

Cimpress N.V CMPR

It is an online supplier of high-quality graphic design services and customized printed products to small businesses and consumers. With a market cap of $3.50 billion, the stock has an estimated earnings growth of 37.30% for fiscal year (ending June 2020). It falls under the top 6% of the Zacks industries. CMPR has a Zacks Rank #2 and VGM Score of A.

VirTra Systems Inc. VTSI

This company develops, manufactures, markets and sells personal computer and non-personal computer-based products for training/simulation and advertising/promotion markets. Its earnings are expected to grow 357.14% for 2020. The stock has a market cap of $30.21 million and belongs to the top 6% of the Zacks industries. It has a Zacks Rank #2 and VGM Score of A.

S&P Global Inc. SPGI

It is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. With a market cap of $66.37 billion, the stock has an estimated earnings growth of 10.28% for 2020. It falls under the top 6% of the Zacks Industry Rank. S&P Global has a Zacks Rank #2 and VGM Score of B.

Radware Ltd. RDWR

This company develops, manufactures and markets cyber security and application delivery solutions for applications in physical, virtual, cloud, and software defined data centers worldwide. Its earnings are expected to grow 12.16% for 2020. The stock has a market cap of $1.14 billion and belongs to the top 6% of the industries. It has a Zacks Rank #2 and VGM Score of B.

Office Depot Inc. ODP

This company provides business services and supplies, products, and technology solutions. With  market cap of $1.44 billion, Office Depot also falls in the top 6% of the Zacks industries. The stock, having a Zacks Rank #2 and VGM Score of A, has an estimated earnings growth of 12.82% for 2020.

Knoll Inc. KNL

It is a leading designer and manufacturer of branded office furniture products and textiles, serves clients worldwide. Knoll has an estimated earnings growth of 14.29% for 2020 and has a market cap of $1.34 billion. It has a Zacks Rank #2 and VGM Score of A. The stock is placed at the top 10% of the 250+ Zacks industries.

WidePoint Corporation WYY

With a market cap of $33.91 million, WidePoint is a technology-based provider of products and services to the government sector and commercial markets. It has an estimated earnings growth of 200% for 2020 and is placed at the top 12% of the 250+ Zacks industries. The stock has a Zacks Rank #2 and VGM Score of A.

Valero Energy Corporation VLO

It is the largest independent refiner and marketer of petroleum products in the United States. Valero Energy has a market cap of $39.29 billion and expects earnings growth of 99.46% for 2020. It has a Zacks Rank #2 and VGM Score of B. The stock belongs to the top 12% of the Zacks industries.

American Woodmark Corporation AMWD

With a market cap of $1.84 billion, this company manufactures and distributes kitchen, bath and home organization products for the remodelling and new home construction markets in the United States. It has an estimated earnings growth of 11.33% for the fiscal year (ending April 2021) and is placed at the top 12% of the Zacks industries. The stock has a Zacks Rank #2 and VGM Score of A.

Bristol-Myers Squibb Company BMY

This global specialty biopharmaceutical company is focused on the development of treatments targeting serious diseases. Its earnings are expected to grow 29.4% for 2020. The stock, having a Zacks Rank #2 and VGM Score of A, is placed at top 13% of the industries. It has a market cap of $104.45 billion.

Amkor Technology Inc. AMKR

This company is one of the largest providers of semiconductor packaging and test services. With a market cap of $3.10 billion, it is placed at top 14% of the industries. Its earnings are estimated to grow 100% for 2020. Amkor Technology has a Zacks Rank #1 and VGM Score of B.

Insight Enterprises Inc. NSIT

With a market cap of $2.34 billion, Insight Enterprises is a global direct marketer of brand name computers, hardware and software. It has an estimated earnings growth of 15.29% for 2020 and is placed at top 13% of the industries. The stock has a Zacks Rank #1 and VGM Score of B.

Air Industries Group AIRI

Placing at the top 14% industry, Air Industries is engaged in designing and manufacturing flight critical products including flight safety parts, landing gear and components, arresting gear, flight controls, sheet metal fabrications and ground support equipment. The stock has an estimated earnings growth rate of 225% for 2020 and has a market cap of $47.14 million. It carries a Zacks Rank #2 and has a VGM Score of B.

Itron Inc. ITRI

This technology company is one of the leading global suppliers of a wide range of standard, advanced, and smart meters and meter communication systems, including networks and communication modules, software, devices, sensors, data analytics and service. It has a market cap of $3.36 billion and has expected earnings growth of 14.90% for 2020. Itron carries a Zacks Rank #2 and has a VGM Score of B. The stock belongs to the top 15% of the Zacks industries.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2020?

These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>