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Welcome to Episode #380 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 growth stocks. Yes, she may be Zacks value stock strategist, but every investor needs some growth in their portfolio too.
With inflation seemingly continuing to fall, month over month, it seems like the Fed may be done raising interest rates. Could the Fed really succeed in the soft landing scenario for the economy?
Many people on Wall Street are beginning to think Jay Powell may actually pull off the soft landing. And if he does, that means the economy could reaccelerate in 2024. What stocks will you want to be in if it happens?
Growth stocks have led earlier this year, especially the Magnificent 7. And even with the Fed tightening rates most of this year, there are still companies that are growing both earnings and sales.
Screening for Growth Stocks
Tracey used a Zacks Premium screen called “Market Beating Growth Stocks” to screen for top growth stocks. This screen included the Zacks Rank of #1 (Strong Buy), the top Zacks Rank, along with the Zacks Growth Style Score of A, the top style score.
The company also needed to have strong year-over-year growth, of course, and average trading volume over 100,000.
This screen returned 22 stocks in many different industries. It wasn’t all technology stocks.
NVIDIA was the only Magnificent 7 company to make the screen. It’s had a tremendous year, with the shares up 240%.
NVIDIA hasn’t yet reported earnings, but it’s already a Zacks Rank #1 (Strong Buy) stock. Earnings are expected to rise 223% this fiscal year and sales are forecast to jump 101.7%.
Is there any growth stock better positioned for a soft landing than NVIDIA?
American Eagle is a specialty retailer specializing in apparel and accessories. This had been a difficult retail category over the prior 18 months. But American Eagle is expected to see fiscal 2024 earnings rise 36% with sales increasing 2.4%.
Shares of American Eagle Outfitters are up 33.5% year-to-date but it hasn’t yet reported earnings. It reports on Nov 21, 2023.
Will American Eagle Outfitters maintain its Zacks #1 Rank after it reports earnings?
The Progressive is an auto and home insurance company. In business since 1937, you wouldn’t expect an insurer to be on a screen of top growth stocks alongside NVIDIA.
But Progressive is expected to grow earnings by 31.3% in 2023 and another 49% in 2024. Sales are also forecast to be in the double digits for both years. Shares are up 23% year-to-date.
Should an insurance company like The Progressive be on your short list?
Pegasystems is a low-code platform provider. Pega Cloud gross margins reached 74% through the third quarter 2023.
In 2023, Pegasystems earnings are expected to rise 145.8% on sales jumping 5.3%. 2024 is looking bullish too with the analysts expecting another 33.5% earnings growth. Pegasystems is up 37% year-to-date.
Should growth investors be looking at mid-cap companies like Pegasystems?
What Else do you Need to Know About Powerhouse Growth Stocks?
Tune into this week’s podcast to find out.
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5 Powerhouse Growth Stocks to Buy Now
Welcome to Episode #380 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 growth stocks. Yes, she may be Zacks value stock strategist, but every investor needs some growth in their portfolio too.
With inflation seemingly continuing to fall, month over month, it seems like the Fed may be done raising interest rates. Could the Fed really succeed in the soft landing scenario for the economy?
Many people on Wall Street are beginning to think Jay Powell may actually pull off the soft landing. And if he does, that means the economy could reaccelerate in 2024. What stocks will you want to be in if it happens?
Growth stocks have led earlier this year, especially the Magnificent 7. And even with the Fed tightening rates most of this year, there are still companies that are growing both earnings and sales.
Screening for Growth Stocks
Tracey used a Zacks Premium screen called “Market Beating Growth Stocks” to screen for top growth stocks. This screen included the Zacks Rank of #1 (Strong Buy), the top Zacks Rank, along with the Zacks Growth Style Score of A, the top style score.
The company also needed to have strong year-over-year growth, of course, and average trading volume over 100,000.
This screen returned 22 stocks in many different industries. It wasn’t all technology stocks.
5 Powerhouse Growth Stocks to Buy Now
1. NVIDIA Corp. (NVDA - Free Report)
NVIDIA was the only Magnificent 7 company to make the screen. It’s had a tremendous year, with the shares up 240%.
NVIDIA hasn’t yet reported earnings, but it’s already a Zacks Rank #1 (Strong Buy) stock. Earnings are expected to rise 223% this fiscal year and sales are forecast to jump 101.7%.
Is there any growth stock better positioned for a soft landing than NVIDIA?
2. Guidewire Software, Inc. (GWRE - Free Report)
Guidewire Software is the platform P&C insurers use to manage their business. It has more than 450 insurer customers.
Guidewire Software is expected to growth earnings by 111% in fiscal 2024 with sales rising 8.5%. Shares of Guidewire Software are up 53.5% in 2023.
Should Guidewire Software be on your short list?
3. American Eagle Outfitters, Inc. (AEO - Free Report)
American Eagle is a specialty retailer specializing in apparel and accessories. This had been a difficult retail category over the prior 18 months. But American Eagle is expected to see fiscal 2024 earnings rise 36% with sales increasing 2.4%.
Shares of American Eagle Outfitters are up 33.5% year-to-date but it hasn’t yet reported earnings. It reports on Nov 21, 2023.
Will American Eagle Outfitters maintain its Zacks #1 Rank after it reports earnings?
4. The Progressive Corp. (PGR - Free Report)
The Progressive is an auto and home insurance company. In business since 1937, you wouldn’t expect an insurer to be on a screen of top growth stocks alongside NVIDIA.
But Progressive is expected to grow earnings by 31.3% in 2023 and another 49% in 2024. Sales are also forecast to be in the double digits for both years. Shares are up 23% year-to-date.
Should an insurance company like The Progressive be on your short list?
5. Pegasystems Inc. (PEGA - Free Report)
Pegasystems is a low-code platform provider. Pega Cloud gross margins reached 74% through the third quarter 2023.
In 2023, Pegasystems earnings are expected to rise 145.8% on sales jumping 5.3%. 2024 is looking bullish too with the analysts expecting another 33.5% earnings growth. Pegasystems is up 37% year-to-date.
Should growth investors be looking at mid-cap companies like Pegasystems?
What Else do you Need to Know About Powerhouse Growth Stocks?
Tune into this week’s podcast to find out.