Energy Fuels (UUUU) and Nvidia (NVDA) Are Aggressive Growth Stocks
Brian Bolan is the aggressive growth stock strategist at Zacks Investment Research and he has two more names for your aggressive growth radar screen. He notes that this is going to be a rather “hot” take as one stock is a nuclear name and the other is one of the magnificent 7.
Brian starts with Energy Fuels UUUU which is a Zacks Rank #2 (Buy) But it does not carry the normal strong Growth Style Score. In the video Brian explains how the price of uranium has suddenly moved a lot higher due to a shortage of supply. Part of the reason for the low supply our geopolitical issues and the conflict in Africa.
Energy Fuels UUUU also doesn't have the earnings history that Brian is used to showing in his videos. The company has missed three of the last four earnings reports but the most recent report was a solid beat producing a positive earnings surprise of 40%. The company is expected to show 254% top line growth this year along with 268% bottom line growth.
The valuation looks attractive at these levels and should oil continue to move higher investors will seek alternative means for energy production.
Nvidia NVDA is a Zacks Rank #1 (Strong Buy) and sports the growth divergence that Brian loves to see. This means the company has a very strong Zacks style score for growth and a weak style score for value. Brian often notes that value investors and growth investors are inherently looking for different things so when the style scores are polar opposites Brian knows he is on the right track.
Nvidia NVDA has beaten the Zacks consensus estimate in each of the last three quarters, with the last two quarters each being bigger than the previous one. This is the type of earnings momentum that Brian loves to see.
The growth story is still very much intact for this stock with estimates calling for top line growth of more than 100% this year. Next year analysts are calling for 47% top line growth on what is already a very large base of $54 billion in sales for 2024.
The stock trades at a forward earnings multiple of 40x which is somewhat reasonable given the gigantic growth. Brian also notes that operating margins have moved from 23% to 33% over the last two quarters.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Energy Fuels Inc (UUUU) : Free Stock Analysis Report
