Q2 earnings season began with a thud. That’s because we have had the most negative pre-announcements since the 2006 earnings season. On top of that expectations point to overall growth to actually be in negative territory.
That is a long way to fall from the 20%+ growth on average displayed last year. But to put that into perspective we have to remind ourselves that the exceptional growth was fueled by a lower corporate tax rate creating a one-time artificial boost. Now results are coming back down to earth.
Just because the average stock is seeing tame earnings results doesn’t mean that every company falls into that camp. In fact, there are some stocks expected to have 40% or greater earnings growth. Not just this year…but for the next 3 to 5 years.
That extraordinary growth is what you want in your portfolio now!
Why? Because when growth is in such short supply across all companies, then investors will gravitate to those showing robust growth. This typically results in ample outperformance.
Let’s talk about the parameters that got us down to these 6 stocks:
- POWR Rating of A or B: These are the Buy rated stocks which means they are displaying the best momentum at this time. We kicked the lower rated C, D and F stocks to the curb.
- 40%+ expected earnings growth for the next few years.
This is one of the simplest stock screens that I have put together. But don’t lets its simplicity fool you. It quickly narrowed down to 6 stocks with the right stuff to excel in this market environment.
The most surprising thing to me with this list is that it really only has 1 small cap stock, Goosehead Insurance (GSHD). Certainly you would think the smaller the company the more growth. However, China Life (LFC) and Charter Communications (CHTR) are $73 to $92 billion market cap respectively.
The point is that every investor should find a stock to their liking in this field of 6. The key is to continue your research on each stock by clicking their ticker below. This will take you to our quote page where you can see the full details on the POWR Rating for each stock. I am referring to the 4 sub components of the rating that help you lock down on the best shares (Buy & Hold Grade, Trade Grade, Industry Rank, Peer Grade).
Company | Ticker | Market Cap ($mil) | Price | Est. Growth % |
Alamos Gold Inc | AGI | $2,422 | $6.21 | 51 |
China Life Ins | LFC | $73,093 | $12.93 | 51 |
Goosehead Insur | GSHD | $681 | $46.00 | 50 |
Hubspot Inc | HUBS | $7,566 | $179.71 | 48 |
Exelixis Inc | EXEL | $6,331 | $20.98 | 46 |
Charter Comm-A | CHTR | $92,560 | $414.31 | 43 |
Also here are links to 3 other popular destinations to make the best use of the POWR Ratings:
Full List of “A ”Rated Strong Buy Stocks– See all the top rated stocks.
About the POWR Ratings– Learn what’s build inside the POWR Ratings that helps find stocks ready to outperform.
Reitmeister Total Return portfolio. This is where Steve Reitmeister employs his 40 years of investment experience to hand select the best POWR Ratings stocks.
CHTR shares were trading at $406.83 per share on Monday afternoon, down $2.96 (-0.72%). Year-to-date, CHTR has gained 42.76%, versus a 20.37% rise in the benchmark S&P 500 index during the same period.
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About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
More Resources for the Stocks in this Article
Ticker | POWR Rating | Industry Rank | Rank in Industry |
CHTR | Get Rating | Get Rating | Get Rating |
Get Rating | Get Rating | Get Rating | |
Get Rating | Get Rating | Get Rating | |
HUBS | Get Rating | Get Rating | Get Rating |
Get Rating | Get Rating | Get Rating |