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Seeking Growth? 3 Buy-Rated Stocks to Consider

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There are many types of investing styles deployed within the market. Some investors prefer to target income, and some prefer value.

As many know, growth investing has made a comeback in 2023 amid the market’s rebound, with many high-flying names enjoying positive price action year-to-date.

And for those interested in the growth investing style, three stocks – Amazon (AMZN - Free Report) , Asure Software (ASUR - Free Report) , and Abercrombie & Fitch (ANF - Free Report) – could all be considered.

On top of strong projected growth, all three sport a favorable Zacks Rank, indicating optimism among analysts. Let’s take a closer look at each.

Amazon

Amazon shares have helped lead the market’s surge in 2023, up roughly 50% and widely outperforming the S&P 500. Analysts have raised their earnings expectations across the board, helping land the stock into a Zacks Rank #1 (Strong Buy).

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Image Source: Zacks Investment Research

The company is expected to witness a notable growth recovery following a harsh operating environment in 2022, with Zacks Consensus Estimates suggesting 214% EPS growth on 11% higher revenues in its current year (FY23). And the growth is slated to continue, with expectations alluding to a further 40% boost in earnings paired with a 13% revenue climb for FY24.

Asure Software

Asure Software, a current Zacks Rank #1 (Strong Buy), provides Web-based workforce management solutions. Analysts have raised their expectations across all timeframes.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s shares aren’t valuation stretched given its forecasted growth, with earnings suggested to climb 260% in its current fiscal year and an additional 37% in FY24. Shares presently trade at a 13.8X forward 12-month earnings multiple.

It’s worth noting that ASUR has been a consistent earnings performer, exceeding our consensus EPS and revenue estimates in each of its last four releases. In fact, the average beat across its last four releases is a sizable 670%.

Despite the better-than-expected results, shares have faced volatility post-earnings in back-to-back releases, setting up a sizable discount for potential buyers.

Zacks Investment Research
Image Source: Zacks Investment Research

Abercrombie & Fitch

Abercrombie & Fitch, a current Zacks Rank #1 (Strong Buy), operates as a specialty retailer of many types of premium, high-quality casual apparel for men, women, and kids through a vast store network. The company’s earnings are forecasted to jump 1600% in its current year, with an improved operating environment providing tailwinds.

The revisions trend has been particularly notable for its upcoming release expected in November, up 245% since July of this year.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s latest quarterly results came in nicely above expectations, causing shares to soar post-earnings. ANF’s inventory levels declined 30% year-over-year and posted an operating margin of 9.6%, with the latter nowhere near the year-ago figure of roughly breakeven. And to top it off, the company raised its full-year sales and operating margin outlook.

In addition, the company’s improving ROE is undoubtedly worth highlighting, reflecting higher efficiency in generating profits from existing assets.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Many growth stocks have jumped back into style in 2023 after last year’s rough showing, delivering market-beating returns.

And for those interested in this investing style, all three stocks above – Amazon (AMZN - Free Report) , Asure Software (ASUR - Free Report) , and Abercrombie & Fitch (ANF - Free Report) – could be great considerations, all boasting improved earnings outlooks and solid growth profiles for their current fiscal years.


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