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Wall Street used June’s inflation print last week as a sell-the-news event and took profits on overheated big tech stocks. The S&P 500 and the Nasdaq have bounced back and held their ground since then as earnings season heats up.
At the same time, the small-cap Russell 2000 has soared as Wall Street prices in the start of Fed rate cuts in September. Increased market breadth is a positive sign for investors.
Plus, even if big tech experiences more near-term selling pressure, the bullish backdrop remains intact.
Today we explore how investors can use a Zacks screen to help find some of the best Zacks Rank #1 (Strong Buy) stocks to buy in July and throughout the second half of 2024.
Zacks Rank #1 (Strong Buy) stocks outperform the market in both good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time.
Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.
Parameters
Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.
• Zacks Rank equal to 1
Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.
• % Change (Q1) Est. over 4 Weeks greater than 0
Positive current quarter estimate revisions over the last four weeks.
• % Broker Rating Change over 4 Week equal to Top # 5
Top 5 stocks with the best average broker rating changes over the last four weeks.
This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.
Here is one of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…
Spotify kickstarted the paid streaming music industry in 2008, forever changing the way people consume music. Spotify is thriving despite streaming music competition from Apple ((AAPL - Free Report) ) and Amazon ((AMZN - Free Report) ), as users flock to the service for music, podcasts, and audiobooks.
SPOT has doubled its revenue since 2019, posting 16% sales growth in 2023 to reach $14.33 billion. The firm closed last quarter with 615 million monthly active users, up 19% YoY, including 239 million Premium Subscribers, which grew by 14% from the year-ago period.
Image Source: Zacks Investment Research
Spotify announced in June that it would raise its prices for the second time in roughly a year to keep up with inflation and boost profits. Zacks estimates call for SPOT to grow its sales by 18% in 2024 and another 15% next year to soar from around $14 billion in FY23 to nearly $20 billion next year.
Spotify is projected to swing from an adjusted loss of -$2.95 a share last year to +$5.02 per share in 2024 and then surge another 44% next year.
SPOT’s adjusted earnings outlook has skyrocketed over the past 12 months, up 723% for FY24 and 215% for FY25. The streaming music firm’s upbeat EPS outlook helps it land its Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Spotify shares have soared around 270% off their 2022 lows, including a 58% YTD climb to blow away Apple and Amazon’s 2024 performances. SPOT is facing some selling pressure, trading below its 50-day moving average and at its lowest RSI levels since the market bottom in October 2023.
Spotify trades 11% below its average Zacks price target heading into its Q2 earnings release on Tuesday, July 23. The stock also trades solidly under its all-time highs. SPOT could be due for a break out if it impresses Wall Street next week.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Image: Bigstock
Finding the Best Top-Ranked Stocks to Buy in July
Wall Street used June’s inflation print last week as a sell-the-news event and took profits on overheated big tech stocks. The S&P 500 and the Nasdaq have bounced back and held their ground since then as earnings season heats up.
At the same time, the small-cap Russell 2000 has soared as Wall Street prices in the start of Fed rate cuts in September. Increased market breadth is a positive sign for investors.
Plus, even if big tech experiences more near-term selling pressure, the bullish backdrop remains intact.
Today we explore how investors can use a Zacks screen to help find some of the best Zacks Rank #1 (Strong Buy) stocks to buy in July and throughout the second half of 2024.
Zacks Rank #1 (Strong Buy) stocks outperform the market in both good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time.
Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.
Parameters
Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.
• Zacks Rank equal to 1
Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.
• % Change (Q1) Est. over 4 Weeks greater than 0
Positive current quarter estimate revisions over the last four weeks.
• % Broker Rating Change over 4 Week equal to Top # 5
Top 5 stocks with the best average broker rating changes over the last four weeks.
This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.
Here is one of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…
Spotify Technology ((SPOT - Free Report) )
Spotify kickstarted the paid streaming music industry in 2008, forever changing the way people consume music. Spotify is thriving despite streaming music competition from Apple ((AAPL - Free Report) ) and Amazon ((AMZN - Free Report) ), as users flock to the service for music, podcasts, and audiobooks.
SPOT has doubled its revenue since 2019, posting 16% sales growth in 2023 to reach $14.33 billion. The firm closed last quarter with 615 million monthly active users, up 19% YoY, including 239 million Premium Subscribers, which grew by 14% from the year-ago period.
Image Source: Zacks Investment Research
Spotify announced in June that it would raise its prices for the second time in roughly a year to keep up with inflation and boost profits. Zacks estimates call for SPOT to grow its sales by 18% in 2024 and another 15% next year to soar from around $14 billion in FY23 to nearly $20 billion next year.
Spotify is projected to swing from an adjusted loss of -$2.95 a share last year to +$5.02 per share in 2024 and then surge another 44% next year.
SPOT’s adjusted earnings outlook has skyrocketed over the past 12 months, up 723% for FY24 and 215% for FY25. The streaming music firm’s upbeat EPS outlook helps it land its Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Spotify shares have soared around 270% off their 2022 lows, including a 58% YTD climb to blow away Apple and Amazon’s 2024 performances. SPOT is facing some selling pressure, trading below its 50-day moving average and at its lowest RSI levels since the market bottom in October 2023.
Spotify trades 11% below its average Zacks price target heading into its Q2 earnings release on Tuesday, July 23. The stock also trades solidly under its all-time highs. SPOT could be due for a break out if it impresses Wall Street next week.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Click here to sign up for a free trial to the Research Wizard today.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure