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5 Solid Picks: Time to Catch Growth Fever Once Again

Zacks Equity Research

Despite the deep skepticism which initially greeted the possibility of Trump as U.S. President, it turns out that his electoral victory has actually given the ageing bull market a fresh lease of life. His pledge to slash taxes and regulatory red tape has been cheered by the industry and stock market enthusiastically.

On the other hand, significant political uncertainty, sustained economic slowdown and consumer demand issues remain substantial risks. But, we feel that the best trades are initiated in wayward times like these.

Should the bull market continue its uptrend, those who are invested in the market will likely be much better off than those waiting on the sidelines for the market to “correct.” And after eight years of the raging bull, who knows when that will happen…

If we just stick to the script and focus on time-tested screens, we are likely to find fantastic stock ideas. And when it comes to the script, growth stocks have always told the most magnificent stories, haven’t they?

So, let’s get back in the game and look for those growth contenders which have grappled with sluggish consumer spending, macroeconomic concerns and what not, and still have a long way to go. But how do we single out the cream of the crop from the dime-a-dozen growth stocks that are all over investors’ radar these days?

This is where our Growth Style Score comes in. We have handpicked those stocks that hold a Growth Style Scores of ‘A,’ and also boast the top Zacks Rank #1 (Strong Buy). Our research shows that these Growth Style Scores, when combined with a top Zacks Rank, offer the best investment opportunities in the growth investing space. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Further, we have made sure that these stocks belong to top-performing industries, using our Zacks Industry Rank system. This way, we can ensure that our picks also stand to benefit from bullish factors which their respective industry is enjoying.

These stocks have also been seeing positive interest from analysts lately.

5 Growth Picks

POSCO PKX manufactures and sells steel rolled products and plates in South Korea, and internationally. POSCO’s earnings are set to grow at an impressive rate of 41.7% this year. Furthermore, the company belongs to the Steel Producers industry, which is ranked #18 and lies in the Top 7% of industries, per the Zacks Industry Ranking system.

Over the past month, analysts have become increasingly bullish on the company, with one upward estimate revision for the company’s 2016 earnings. This has led to a sharp spike in the Zacks Consensus Estimate for 2016, which is now pegged at $4.15, up from $4.02 a month ago.

Logitech International SA LOGI designs, manufactures, and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms worldwide. The company’s bottom line is set to grow at an astounding rate of 30.2% this year. In addition, the company belongs to the Computer – Peripheral Equipment industry, which is ranked #17 and lies in the top 6% of industries.

The stock has been witnessing solid activity on the earnings estimate revision front as well. Analysts clearly see good things in the company’s future, as the Zacks Consensus Estimate for 2017 earnings has sharply trended up over the past couple of months, from 88 cents to $1.12, thanks to two upward estimate revisions.

Aperam APEMY produces and sells stainless steel and specialty steel products across the world. This company’s earnings are set to grow at a striking 49.8% in 2017. Moreover, the company belongs to the Steel Producers industry, which is ranked #18 and lies in the top 7% of industries.

Analysts have great expectations from the company this year and have been revising 2017 earnings estimates upward over the past month. Aperam has seen one positive revision over the past two months, resulting in its 2017 estimate climbing from $3.67 to $3.88.

Ultratech, Inc. UTEK develops, manufactures, and markets photolithography, laser thermal processing, and inspection equipment. The company’s earnings are set to grow 16.1% year over year. Besides, the company belongs to the Electronics - Manufacturing Machinery industry, which is ranked #6 and lies in the top 2% of industries, per the Zacks Industry Ranking system.

Moreover, analysts have become increasingly bullish on the company over the past couple of months, with three upward estimate revisions for its 2017 earnings. This has led to a sharp spike in the Zacks Consensus Estimate for 2017, which is now pegged at 74 cents, up from 59 cents 60 days ago.

John Bean Technologies Corporation JBT designs, manufactures, tests, and services products and systems for food and beverage, and air transportation industries. The company’s bottom line is set to grow at a rate of 21.1% this year. In addition, the company belongs to the Manufacturing - Thermal Products industry, which is ranked #13 and lies in the top 5% of industries, according to the Zacks Industry Ranking system.

The stock has been witnessing solid activity on the earnings estimate revision front as well. Analysts clearly envision healthy earnings momentum for the company as the Zacks Consensus Estimate for 2017 has sharply trended up over the past month, from $2.94 to $3.10, thanks to two upward estimate revisions.

Catch the Winds

Don’t let the market give you the blues. Stick to the basics that worked in the past, with just a little fine-tuning to adapt to the times. Because as they say, the brave may not live forever, but the cautious do not live at all!

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Ultratech, Inc. (UTEK): Free Stock Analysis Report
 
Logitech International S.A. (LOGI): Free Stock Analysis Report
 
John Bean Technologies Corporation (JBT): Free Stock Analysis Report
 
POSCO (PKX): Free Stock Analysis Report
 
Aperam (APEMY): Free Stock Analysis Report
 
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