For Immediate Release
Chicago, IL – June 30, 2022 – Zacks Market Edge is a weekly hosted podcast by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1945879/screening-for-the-best-growth-stocks-in-summer-of-2022)
Screening for the Best Growth Stock in the Summer of 2022
Welcome to Episode # 320 of the Zacks Market Edge Podcast.
- (1:15) – Are There Any Attractive Growth Stocks Right Now?
- (6:20) – Narrowing Down The Top Performers: Stocks To Keep On Your Radar
- (17:40) – Episode Roundup: PRDO, ABNB, SAFM, CTLP, HUBG
- [email protected]
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 find some growth stocks with high Zacks Rank and a high Zacks Style Score for growth. How hard can it be?
Zacks has several predefined growth stock screens on its screening page on Zacks website which are available to Zacks Premium members and Tracey. She did the screens for you.
While she didn’t expect to get a lot of growth stocks with rising earnings and a high Rank, she was surprised when one of the screens, that included a top 50 Industry Rank, only gave her one stock.
Are things really that gloomy in growth stocks?
Top Ranked Growth Stocks on the Move
1. Perdoceo Education PRDO
Perdoceo Education is the one stock in the Top Ranked Growth Stocks on the Move screen. It offers post-secondary education, including Associate and Bachelor’s degrees, mainly online but it also operates 4 ground campuses including the Colorado Technical University in Colorado.
Perdoceo Education is in the Education industry which is currently in the top 39% on the Industry Rank.
It’s a Zacks Rank # 2 (Buy) stock.
Perdoceo shares are down 8.2% over the last year and trade with a forward P / E of 8.4.
Don’t like the education industry, then you might want to run a second screen like Tracey did.
Market Beating Growth Stocks
There’s another screen that didn’t use the Industry Rank but looked simply for 20% or more projected EPS growth, the Zacks Rank of # 1 (Strong Buy) and the Zacks Style Score for Growth of A.
Running that screen, it returned 31 stocks.
2. Airbnb (ABNB)
Airbnb is a Zacks Rank # 1 (Strong Buy) even though the shares have fallen 40% year-to-date.
Airbnb’s earnings are expected to jump 419% this year to $ 1.82 from a loss of $ 0.57. As it now has positive earnings, it has a forward P / E. But that P / E is still high at 56x.
Airbnb’s shares are trading near 52-week lows, is all the bad news priced in?
3. Sanderson Farms (SAFM)
Sanderson Farms is the third largest poultry producer in the United States. Earnings are expected to soar 137.1% this year to $ 48.02 from $ 20.25 last year.
It’s a rare stock that’s in the green this year, with shares up 15.1% year-to-date.
Sanderson Farms stock is also still dirt cheap, with a forward P / E of just 4.5.
Should you forget about technology stocks and buy Sanderson Farms instead?
4. Cantaloupe, Inc. (CTLP)
Cantaloupe is a small cap software and payments company that provides end-to-end technology solutions for the unattended retail market, such as vending machine companies, laundromats and kiosks.
Cantaloupe’s earnings are expected to rise 86% in fiscal 2022 with earnings expected to jump to a loss of $ 0.02 from a loss of $ 0.14 last year. Analysts also expect it to be positive earnings next fiscal year.
Shares have tumbled 39% year-to-date and are down 54% over the last year.
Is all the negative news now priced into Cantaloupe’s shares?
5. Hub Group (HUBG)
Hub Group is a transportation and logistics management company that was founded in 1971.
On Apr 28, 2022, it reported its first quarter results and saw record quarterly revenue up 41% to $ 1.3 billion, record quarterly gross margin and record quarterly earnings.
Hub Group also raised full year guidance at that time. Earnings are expected to rise 86.7% to $ 9.45 from $ 5.06 last year.
However, shares are down 16.4% year-to-date and are cheaper than ever, with a forward P / E of 7.6.
But with the possibility of a slowing economy, should you own one of the logistics companies in 2022?
What Else Do You Need To Know About Finding Top Growth Stocks This Summer?
Tune into this week’s podcast to find out.
Why Haven’t You Looked at Zacks’ Top Stocks?
Our 5 best-performing strategies have blown away the S & P’s impressive + 28.8% gain in 2021. Amazingly, they soared + 40.3%, + 48.2%, + 67.6%, + 94.4%, and + 95.3%. Today you can access their live picks without cost or obligation.
See Free Stocks >>
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of current portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket + 100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $ 1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up + 143.0% in little more than 9 months and NVIDIA which boomed + 175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Click to get this free report
Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report
Hub Group, Inc. (HUBG): Free Stock Analysis Report
Perdoceo Education Corporation (PRDO): Free Stock Analysis Report
Airbnb, Inc. (ABNB): Free Stock Analysis Report
Cantaloupe, Inc. (CTLP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.