4 Top-Ranked Growth Stocks After Recent Market Pullback
Investors have seemingly enjoyed generous profits during the extended post-election stock rally. However, last week’s turmoil is a reminder that the market is fraught with risks and seems uncertain as ever. Rising interest rates, rapid technological change and the possibility of a trade war has made investors jittery in recent times.
Yet, if history is anything to go by, this skepticism on the part of investors offers a compelling case for the market to go up. Once the market starts to turn around, the bears will be forced to buy.
Hence, we believe that often, best trades are initiated during wayward times like these. If we stick to the script and focus on time-tested screens, we are likely to find fantastic stock ideas. Talking about scripts, growth stocks have always told the most magnificent stories, haven’t they?
However, the question lingers — how to single out the cream of the crop from the dime-a-dozen growth stocks that are on investors’ radar these days? Over the last decade, economic conditions have nudged investors to put money on growth stocks. This indicates that such stocks have now already appreciated. However, we believe that when overall growth becomes hard to find, growth stocks will outperform.
Here we present some of the best growth stocks in this market, which have declined somewhat in last week’s market correction. These stocks sport a Zacks Rank #1 (Strong Buy) and hold a Growth Style Score of A. Our research shows that the top Growth Style Score, when combined with a top Zacks Rank, offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks #1 Rank stocks here.
Further, these stocks have been witnessing positive interest from analysts lately and belong to industries that rank roughly in the top one-third, per the Zacks Industry Rank system. This way, we can ensure that our picks are poised to benefit from a bullish outlook for their respective industry.
4 Money Spinners
Builders FirstSource, Inc. BLDR manufactures and supplies building materials along with manufactured components as well as provides construction services in the United States. The company’s earnings are set to grow at 42% this year.
Over the past couple of months, analysts have become increasingly bullish on the stock, with six upward estimate revisions for the company’s 2018 earnings. This has led to a sharp spike in the Zacks Consensus Estimate for 2018, which is pegged at $1.60, up nearly 12% from $1.60 60 days ago.
Harsco Corporation HSC provides industrial services and engineered products worldwide. The company’s bottom line is set to grow at an impressive rate of 77.3% in 2018.
The stock has been witnessing solid activity on the earnings estimate revision front as well. Analysts project good things in the company’s future, as the Zacks Consensus Estimate for 2018 earnings has trended up sharply over the past couple of months, from 90 cents to $1.10 per share.
Shutterfly, Inc. SFLY manufactures and retails personalized products and services primarily in the United States, Canada and the European Community. The company’s earnings are set to grow at a striking 99.2% in 2018.
Analysts have great expectations from the company this year and have been revising 2018 earnings estimates upward over the past month. Shutterfly has seen 4 positive revisions over the past eight weeks, resulting in its 2018 estimate climbing from $1.52 to $2.09.
Kulicke and Soffa Industries, Inc. KLIC designs, manufactures and sells capital equipment as well as expendable tools to assemble semiconductor devices. The company’s earnings are set to grow 43.6% year over year.
Moreover, analysts have become increasingly bullish on the company over the past month, with two upward estimate revisions for its 2018 earnings. This has led to a sharp spike in the Zacks Consensus Estimate for 2018, which is pegged at $2.23, up from $1.69 a month ago.
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