5 Stocks That Popped More Than 100% in 2018 Defying All Odds
The year 2018 has been fettered by political tensions, rate hikes, volatility in stock market and the trade war debacle. Hit by such odds, the Dow Jones Industrial Average and the S&P 500 index have lost 1.4% so far in the year.
Fresh data from IMF shows that the economy will maintain its slow pace in 2019 and 2020. Bloomberg forecasts United States’ net contribution to global GDP to drop from 12.3% at present to 8.5% in 2022. That’s not all. The latest inversion of the ‘Treasury Yield Curve’ is yet another factor to fret about, as analysts apprehend an economic recession in 2019. Not to forget, the yield curve last inverted in 2008, just before the Great Recession.
This can only heighten investor concerns. However, consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.6% in recent times. It is encouraging to note that customer satisfaction has maintained its peak in the recently wrapped third quarter of 2018.
U.S.-China Trade War
Trade tensions between the United States and China intensified of late. While there is a pause in trade-related hostilities to make way for talks, it is building tension for many U.S. companies who majorly rely on overseas sales for revenues.
Accusing China of unfair trade practices, in July, President Trump has imposed tariffs on another $200 billion of imports from China just days after slapping punitive duties on $34 billion of Chinese goods. This was followed by an immediate retaliation by China, which imposed tariffs on U.S. exports of $3 billion. The blow followed Trump’s proposal of implementing tariffs on more than $500 billion worth of Chinese goods.
Per the latest updates, China has promised to buy $1.2 trillion worth of agricultural, energy and industrial goods from the United States. However, China has lately proposed a 15% tariff cut on U.S. cars, which again awaits an official confirmation.
Now, if we keep aside the deterrents, let’s see if there are chances of recovery in the near term.
Factors to Count On
Apart from favorable consumer spending, job additions in the U.S. economy have been meeting expectations. Job growth has been substantial enough to keep the unemployment rate at its lowest level in 49 years. Notably, professional and business services have contributed the largest number of jobs over the past year. Jobs gains were also led by healthcare, manufacturing and transportation and warehousing.
Set against this volatile backdrop, let us focus on a few stocks which are likely to garner solid returns for investors. We have zeroed down on five such stocks using the Zacks Stock Screener. Notably, each of these stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Additionally, all of these stocks have rallied more than 100% to date and also have a market cap of more than $1 billion.
Our first pick is Crocs, Inc. CROX — a leader in innovative footwear for men, women and children. The company has a market cap of $1.70 billion.
The stock has a Growth Score of A. This reflects possibilities of outperformance over the long haul. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2 are better picks than most.
Year to date, the Zacks Rank #1 stock has rallied 103.5% comparing favorably with the industry’s 4.9% rise.
The company has continuously invested in new comfort-focused technology like Literide. Moreover, an accelerating digital commerce growth platform has lent the company a competitive edge in the market.
Next on our list is Genomic Health, Inc. GHDX. The California-based molecular diagnostics company has a market cap of $2.66 billion. The stock also has a Growth Score of A.
Year to date, the Zacks Rank #1 stock has rallied 109.3% against the industry’s 19% decline.
Notably, the company has been witnessing healthy progress with regard to establishing coverage for its Oncotype DX breast cancer test. Moreover, Genomic Health’s U.S. prostate cancer business has consistently accelerated over the last few quarters.
Investors may also choose DexCom, Inc. DXCM as well. The leading manufacturer of glucose monitoring systems (CGM) has a market cap of $10.97 billion. The stock also has a Growth Score of A.
Year to date, the Zacks Rank #1 stock has rallied 114.3% compared with the industry’s 11.6% rise.
In recent times, Dexcom announced the release of the CLARITY mobile app. The Dexcom CLARITY Diabetes Management Software is a cloud-based solution that simplifies CGM data reporting and facilitates the secure sharing of data between physicians and patients. Additionally, the company recently announced an amendment to its license deal with Verily, the life sciences unit of Alphabet GOOGL, which is expected to deliver its next-generation CGM platform by 2020-end. (Read More: DexCom Amends Deal With Verily to Launch Advanced CGM by 2020)
Investors may also opt for Amedisys, Inc. AMED. The provider of home health and hospice services throughout the United States has a market cap of $4.12 billion and a Growth Score of A.
Since the start of the year, the Zacks Rank #1 stock has skyrocketed 144.7% against the industry’s 5.4% decline.
Recently, the company announced a definitive agreement to acquire Compassionate Care Hospice, a national hospice care provider headquartered in Parsippany, New Jersey. The company is striving hard to improve the quality of care as well as implement disease management programs catering to the needs of patients served by the hospitals. The company also continues to benefit from the aging demographics of the U.S. population and the need for higher acuity patients to be taken care of in a home nursing environment.
Lastly, Zacks Rank #2 Twilio Inc. TWLO is also a promising pick. The San Francisco-based provider of cloud communications services has a market cap of $9.08 billion.
Year to date, the stock has skyrocketed 292.9% against the industry’s 5.4% decline.
Twilio offers multiple products which are broadly classified into three categories — Programmable Messaging, Programmable Voice and Programmable Video. Moreover, the company’s efforts toward expanding global footprint are commendable. Additionally, the market in which Twilio operates has a huge growth potential. The company’s main business, Programmable messaging, is likely to witness tremendous growth as the global Application-to-person (A2P) SMS market is anticipated to reach $86.53 billion by 2025.
In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?
These 10 are painstakingly handpicked from over 4,000 companies covered by the Zacks Rank. They are our primary picks poised to outperform in the year ahead.
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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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Crocs, Inc. (CROX) : Free Stock Analysis Report
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