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How to Find the Best Top-Ranked Stocks to Buy in September
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The bulls are in control as they look ahead to interest rate cuts and impressive technology-driven earnings growth. Wall Street blocks out nearly everything else since interest rates and earnings are the two largest factors that drive stock prices over the long haul.
Jay Powell and the Fed committed to start cutting interest rates next month with the S&P 500 trading just below its all-time highs.
There could be more selling and volatility in the near term with Wall Street possibly ready to take profits before or after the release of some key earnings reports and economic data later this week.
The uncertainty of the U.S. presidential election cycle might also lead to near-term choppiness. Still, the market-timing game is extremely difficult to navigate, making it imperative to stay constantly exposed to the stock market.
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 heading into September and the final months 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…
Robinhood Markets ((HOOD - Free Report) ) is a broker-dealer that burst onto the scene by appealing to young investors and newcomers to the stock market. Robinhood transformed into a widely popular trading platform during the initial Covid market rebound and subsequent bull run. Since then, Robinhood has rolled out retirement accounts, a credit card, and more to add to its trading platform, which includes crypto.
Image Source: Zacks Investment Research
Robinhood grew its average revenue per user by 35% year-over-year to $113 in the second quarter, with its Gold Subscribers soaring 61% to 2.0 million. Robinhood crushed our adjusted second-quarter earnings estimate on August 7 by 40% and raised its outlook. HOOD’s consensus earnings estimates for FY24 and FY25 surged by 36% and 31%, respectively since its Q2 release.
HOOD is projected to swing from an adjusted loss of -$0.61 a share last year to +$0.76 a share in 2024. Meanwhile, its revenue is expected to pop 43% in FY24 and 9% higher in FY25 to hit $2.90 billion vs. $1.9 billion in 2023.
Image Source: Zacks Investment Research
Robinhood shares have climbed 100% in the past year. At roughly $21 a share, HOOD trades 15% below its 52-week highs and miles under its post-IPO levels of over $50 a share.
HOOD is attempting to break out above its 50-day moving average. Robinhood trades nearly in line with the Tech sector at 27.6X forward 12-month earnings, marking a 60% discount to its one-year median.
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
How to Find the Best Top-Ranked Stocks to Buy in September
The bulls are in control as they look ahead to interest rate cuts and impressive technology-driven earnings growth. Wall Street blocks out nearly everything else since interest rates and earnings are the two largest factors that drive stock prices over the long haul.
Jay Powell and the Fed committed to start cutting interest rates next month with the S&P 500 trading just below its all-time highs.
There could be more selling and volatility in the near term with Wall Street possibly ready to take profits before or after the release of some key earnings reports and economic data later this week.
The uncertainty of the U.S. presidential election cycle might also lead to near-term choppiness. Still, the market-timing game is extremely difficult to navigate, making it imperative to stay constantly exposed to the stock market.
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 heading into September and the final months 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…
Robinhood Markets (HOOD - Free Report) Stock
Robinhood Markets ((HOOD - Free Report) ) is a broker-dealer that burst onto the scene by appealing to young investors and newcomers to the stock market. Robinhood transformed into a widely popular trading platform during the initial Covid market rebound and subsequent bull run. Since then, Robinhood has rolled out retirement accounts, a credit card, and more to add to its trading platform, which includes crypto.
Image Source: Zacks Investment Research
Robinhood grew its average revenue per user by 35% year-over-year to $113 in the second quarter, with its Gold Subscribers soaring 61% to 2.0 million. Robinhood crushed our adjusted second-quarter earnings estimate on August 7 by 40% and raised its outlook. HOOD’s consensus earnings estimates for FY24 and FY25 surged by 36% and 31%, respectively since its Q2 release.
HOOD is projected to swing from an adjusted loss of -$0.61 a share last year to +$0.76 a share in 2024. Meanwhile, its revenue is expected to pop 43% in FY24 and 9% higher in FY25 to hit $2.90 billion vs. $1.9 billion in 2023.
Image Source: Zacks Investment Research
Robinhood shares have climbed 100% in the past year. At roughly $21 a share, HOOD trades 15% below its 52-week highs and miles under its post-IPO levels of over $50 a share.
HOOD is attempting to break out above its 50-day moving average. Robinhood trades nearly in line with the Tech sector at 27.6X forward 12-month earnings, marking a 60% discount to its one-year median.
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