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Black Friday Selloff Seems Momentary: Buy 5 Growth Stocks Now

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Black Friday, the day after Thanksgiving, undoubtedly acts as a measure of consumers’ spending levels in the United States. Yet, the broader investor sentiment isn’t always impacted by the outcome of Black Friday sales. In fact, this year, the spread of a new variant of coronavirus roiled global markets, including the United States, on Black Friday.

The omicron variant of the coronavirus, more contagious than the Delta strain, has begun spreading in several parts of the world and has raised concerns about economic growth. The World Health Organization (WHO) has declared the new variant a concern, with many countries now announcing travel restrictions.

This development on the coronavirus front has wiped out November gains for the broader S&P 500 and the tech-laden Nasdaq. Additionally, the Dow plummeted by the maximum in a day on Black Friday since Oct 28, 2020, citing a MarketWatch article.

However, it isn’t clear that the market selloff during Black Friday will linger. The latest coronavirus development isn’t expected to subdue the broader bullish sentiments as an array of tailwinds is likely to help markets chug along. Notably, the positives have squashed concerns about lofty stock valuations and inflation worries. Thus, investing in growth-oriented stocks like AutoNation, Inc. AN, Devon Energy Corporation DVN, Beazer Homes USA, Inc. BZH, Ethan Allen Interiors Inc. ETD and Alpha and Omega Semiconductor Limited AOSL seems prudent.

Stock Market to Perform Well in the Near Term

Jerome Powell’s reappointment as the Fed Chair bodes well for the stock market for now. Investors are optimistic that his future policies will help the stock market stay afloat despite bottlenecks. Lest we forget, his accommodative monetary policy helped the stock market gain traction amid the coronavirus pandemic last year.

Let us also admit that the U.S. economy is in pretty good shape at the moment. From promising retail sales numbers, healthy labor market data to an uptick in industrial output, things are looking up for the economy vis-à-vis the stock market.

According to the Commerce Department, citing a CNBC article, sales at U.S. retailers increased 1.7% in October despite rising cost of goods and services. Moreover, a solid 531,000 new jobs were added during the said month, quoting a financial times article. To top it, industrial production rebounded and topped expectations last month.

5 Growth Stocks to Buy Right Away

Given the aforesaid positives, the stock market will likely scale upward, dismissing the Black Friday carnage. This calls for investing in the following stocks that at present flaunt a Zacks Rank #1 (Strong Buy) and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

AutoNation is the largest automotive retailer in the United States. It offers vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products.

AutoNation’s expected earnings growth rate for the current year is a solid 39.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 19.7% over the past 60 days.

Devon Energy is an independent energy company. It is engaged primarily in the exploration, development and production of oil and natural gas.

Devon Energy’s expected earnings growth rate for the current year is a whopping 3,877.78%. The Zacks Consensus Estimate for its current-year earnings has moved up 20.6% over the past 60 days.

Beazer Homes designs, builds and sells single-family homes. Beazer Homes designs homes to appeal primarily to entry-level and first move-up homebuyers.

Beazer Homes’ expected earnings growth rate for the current year is a superb 23.7%. The Zacks Consensus Estimate for its current-year earnings has moved up nearly 44% over the past 60 days.

Ethan Allen Interiors is a leading interior design company and manufacturer and retailer of quality home furnishings. Ethan Allen Interiors offers free interior design service to clients and sells a full range of furniture products and decorative accessories through ethanallen.com.

Ethan Allen Interiors’ expected earnings growth rate for the current year is a solid 30.8%. The Zacks Consensus Estimate for its current-year earnings has moved up 16.1% over the past 60 days.

Alpha and Omega Semiconductor is engaged in designing, developing and supplying a broad range of power semiconductors globally. Alpha and Omega Semiconductor seeks to differentiate itself by integrating its expertise in device physics, process technology, design and advanced packaging to optimize product performance and cost.

Alpha and Omega Semiconductor’s expected earnings growth rate for the current year is an encouraging 39.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 19.7% over the past 60 days.

So far this year, shares of AutoNation, Devon Energy, Beazer Homes, Ethan Allen Interiors and Alpha and Omega Semiconductor have gained 82.2%, 170.1%, 32.7%, 15.5% and 82.3%, respectively.


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Devon Energy Corporation (DVN) : Free Stock Analysis Report
 
AutoNation, Inc. (AN) : Free Stock Analysis Report
 
Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report
 
Alpha and Omega Semiconductor Limited (AOSL) : Free Stock Analysis Report
 
Ethan Allen Interiors Inc. (ETD) : Free Stock Analysis Report
 
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