5 Red Hot Stocks to Buy Now
(0:30) - How To Use The Zacks Rank To Find Strong Investments
(5:35) - Stock Screener For Zacks Rank #1: Top Stock Picks For Your Watchlist
(18:45) - Episode Roundup: AMZN, GE, MAR, OFG, TREX
Podcast@Zacks.com
Welcome to Episode #369 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to screen for stocks that have strong upward momentum as well as the Zacks top recommendation: the #1 Rank Strong Buy.
During earnings season, the Zacks Ranks changed frequently. Companies report and some beat and raise guidance. Analysts then have to adjust their earnings estimates accordingly. The top Zacks Ranked stocks usually have a lot of higher earnings estimates revisions.
It’s not surprising that if all of the analysts are bullish at the same time, the stock jumps up into the top Zacks Rank. With all that good news, it’s also not surprising that the shares would be breaking out to new highs.
Screening for Top Ranked Stocks with Momentum
Tracey screened for Zacks Rank #1 (Strong Buy) stocks that were within 5% of their 52-week highs. She got 49 stocks from this simple screen. Many were AT their 52-week highs.
It doesn’t get any more red hot than that.
5 Red Hot Stocks to Buy Now
1. Amazon.com, Inc. (AMZN)
Amazon is finally a Zacks Rank #1 (Strong Buy) again. The last time it was a Strong Buy was in 2019. 12 estimates are higher in the last week after it posted a big earnings beat this quarter. Earnings are now expected to rise 204% year-over-year to $2.16 from $0.71.
Shares of Amazon are up 64% year-to-date and are trading near the 52-week highs. However, on a 2-year stack, Amazon is still down 17.6%.
Should Amazon be on your short list?
2. General Electric Company (GE)
General Electric has been one of the big stock winners in 2023. Shares of General Electric are up 71.5% year-to-date. It’s also outperforming on a 2-year stack, up 37.5% versus the S&P 500 up only 0.7%.
Analysts are bullish. 8 earnings estimates have been revised higher on General Electric over the last 30 days. Earnings are expected to be $2.27, up from $2.02 before the revisions.
Does General Electric still have some gas left in the tank?
3. Marriott International (MAR)
Marriott has beat on earnings 12 quarters in a row. That’s impressive during a pandemic.
Shares of Marriott are up 38.4% year-to-date as travel remains hot and are now not only at a 52-week high but a 5-year high. 7 estimates have been revised higher in the last week which has pushed the Zacks Consensus up to $8.61. That’s earnings growth of 28.7% as Marriott only made $6.69 last year.
After such a huge rally, should Marriott still be on your short list?
4. OFG Bancorp (OFG)
OFG Bancorp is the holding company for Oriental Bank, Oriental Financial Services and Oriental Insurance. It operates primarily in Puerto Rico and the US Virgin Islands. Yes, a bank is a Zacks Rank #1 (Strong Buy) AND is trading near 52-week highs.
Shares of OFG Bancorp are up 18% year-to-date. This bank isn’t heavily covered by analysts but one earnings estimate was revised higher in the last 30 days. The 2023 Zacks Consensus Estimate jumped to $3.74 from $3.44. That’s earnings growth of 8.7% from the prior year.
Should a bank, like OFG Bancorp, be on your radar?
5. Trex Company, Inc. (TREX)
Trex sells composite decking. Last year, shares sold off as housing went into a recession. But analysts got too pessimistic about Trex in 2023.
As a result, 2 estimates have been revised higher for both 2023 and 2024 in the last 7 days. The 2023 Zacks Consensus Estimate has jumped to $1.76 from $1.61 in the last 30 days.
Shares of Trex have soared 74.8% year-to-date but on a 2-year stack, they’re still down 29.7%.
Should Trex be on your short list?
What Else Should You Know About Zacks Strong Buys Trading Near 52-Week Highs?
Listen to this week’s podcast to find out.
[In full disclosure, Tracey owns shares of AMZN in her personal portfolio.]
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
General Electric Company (GE) : Free Stock Analysis Report
Marriott International, Inc. (MAR) : Free Stock Analysis Report
Trex Company, Inc. (TREX) : Free Stock Analysis Report
OFG Bancorp (OFG) : Free Stock Analysis Report
