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Welcome to Episode #358 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 talk about stocks that are breaking out in 2023. It’s not all doom and gloom on Wall Street. While the S&P 500 is up just 7.7% this year, there are some individual stocks that are doing much better. And, surprise, they’re not all technology companies.
Screening for Top Hot Stocks
How do you find the hottest top ranked stocks? You run a stock screen looking for only Zacks #1 (Strong Buy) stocks, which is the top Zacks Rank. Just 246 stocks are strong buys right now.
A stock can get the top rank by analysts raising their earnings estimates for this year. And with many companies beating earnings estimates and raising full year guidance this earnings season, there are plenty of companies where earnings estimates are being revised higher.
To find the “hot” #1 ranked stocks, look for those trading within 5% of their 52-week highs.
LVMH is a French luxury lifestyle company based in Paris. It trades on the OTC market in the United States but Zacks has several earnings estimates for the company and they are moving higher.
Earnings for LVMH are expected to rise 23% in 2023 with 3 estimates higher in the last 30 days.
Shares of LVMH are up 33% year-to-date and are near 5-year highs on strong luxury consumer spending.
Shake Shack has turned around its earnings and is now expected to be earnings positive in 2023. Earnings are expected to rise 122% to $0.07 from a loss of $0.31 last year.
Traders have jumped on the bandwagon. Shares of Shake Shack are up 59% year-to-date, although they remain down 26% in the last 2 years.
Is Shake Shack overbought or does it have further room to run?
PulteGroup is one of 9 homebuilders which are Zacks #1 Strong Buys right now. The analysts got too pessimistic about the homebuilders for 2023.
5 estimates have been raised on PulteGroup in the last 30 days. Earnings, however are still expected to be down 18.7% year-over-year as 2022 was a blockbuster year for earnings for most homebuilders.
Shares of PulteGroup have soared this year, gaining 50% year-to-date. PulteGroup is at new 5-year highs. Who would have thought it with mortgage rates at these levels?
PulteGroup is still cheap, with a forward P/E of 7.7.
Is all the good news already priced into PulteGroup?
What else do you Need to Know About the Hottest Top Ranked Stocks Right Now?
Listen to this week’s podcast to find out.
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5 Hottest Strong Buy Stocks Right Now
Welcome to Episode #358 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 talk about stocks that are breaking out in 2023. It’s not all doom and gloom on Wall Street. While the S&P 500 is up just 7.7% this year, there are some individual stocks that are doing much better. And, surprise, they’re not all technology companies.
Screening for Top Hot Stocks
How do you find the hottest top ranked stocks? You run a stock screen looking for only Zacks #1 (Strong Buy) stocks, which is the top Zacks Rank. Just 246 stocks are strong buys right now.
A stock can get the top rank by analysts raising their earnings estimates for this year. And with many companies beating earnings estimates and raising full year guidance this earnings season, there are plenty of companies where earnings estimates are being revised higher.
To find the “hot” #1 ranked stocks, look for those trading within 5% of their 52-week highs.
This screen returned 50 stocks.
5 Hottest Strong Buy Stocks Right Now
1. Badger Meter, Inc. (BMI - Free Report)
Badger Meter is an industry leader in water solutions. Shares of Badger Meter are up 27% year-to-date and are at 5-year highs.
Earnings for Badger Meter are expected to rise 19% year-over-year in 2023. Shares aren’t cheap, though. It trades with a forward P/E of 51.
If you are looking for a momentum stock with earnings growth this year, should Badger Meter be on your short list?
2. Chipotle Mexican Grill, Inc. (CMG - Free Report)
Chipotle has regained its throne as the king of the restaurants. Shares of Chipotle are up 47% year-to-date and are also at new 5-year highs.
Analysts expect earnings to rise 32.6% this year. It’s not cheap, with a forward P/E of 46, but Chipotle has rarely been a “value” stock.
Should you buy Chipotle on these new highs?
3. LVMH Moet Hennessy Louis Vuitton (LVMUY - Free Report)
LVMH is a French luxury lifestyle company based in Paris. It trades on the OTC market in the United States but Zacks has several earnings estimates for the company and they are moving higher.
Earnings for LVMH are expected to rise 23% in 2023 with 3 estimates higher in the last 30 days.
Shares of LVMH are up 33% year-to-date and are near 5-year highs on strong luxury consumer spending.
LVMH pays a dividend, currently yielding 1.3%.
Should you jump into LVMH for a luxury play?
4. Shake Shack Inc. (SHAK - Free Report)
Shake Shack has turned around its earnings and is now expected to be earnings positive in 2023. Earnings are expected to rise 122% to $0.07 from a loss of $0.31 last year.
Traders have jumped on the bandwagon. Shares of Shake Shack are up 59% year-to-date, although they remain down 26% in the last 2 years.
Is Shake Shack overbought or does it have further room to run?
5. PulteGroup, Inc. (PHM - Free Report)
PulteGroup is one of 9 homebuilders which are Zacks #1 Strong Buys right now. The analysts got too pessimistic about the homebuilders for 2023.
5 estimates have been raised on PulteGroup in the last 30 days. Earnings, however are still expected to be down 18.7% year-over-year as 2022 was a blockbuster year for earnings for most homebuilders.
Shares of PulteGroup have soared this year, gaining 50% year-to-date. PulteGroup is at new 5-year highs. Who would have thought it with mortgage rates at these levels?
PulteGroup is still cheap, with a forward P/E of 7.7.
Is all the good news already priced into PulteGroup?
What else do you Need to Know About the Hottest Top Ranked Stocks Right Now?
Listen to this week’s podcast to find out.