Markets

4 Impressive Growth Stocks to Buy for Q4 2015

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A quarterly decline of 6.9% in the S&P 500 index at the end of the third quarter echoes the warning alarm raised by billionaire activist investor Carl Icahn. The quarterly loss turned out to be the worst one since 2011, making investors apprehensive about the market's near-term future.

Though the valuation corrections have led to "stocks on sale" scenario, stocks are believed to be relatively overpriced owing to the low interest rate environment. The current market situation seems eerily similar to the August 2011 stock markets fall, which was triggered by fears of contagion of the European sovereign debt crisis.

Currently, the market is threatened by the China contagion after paddling through Russia's close shave with the recession and Greece's near-crisis situation. If the current year follows the footsteps of 2011, the S&P 500 still has another 90 points to plunge before it starts recovering again. And that recovery is not going to be easy.

The Fed's decision to keep the rates unchanged along with the current meltdown in the commodities markets is breaking investors' confidence. Moreover, the lousy market conditions do not raise hopes for the third-quarter earnings results.

Nevertheless, all is not lost.

Being aware of where the market stands right now makes it possible to devise strategies to not only minimize losses but also book profits in the fourth quarter. One such timeless approach is investing in growth stocks. With the present bleak market, it is better to focus on the future potential of a company, with less emphasis on its current price.

4 Impressive Growth Stocks to Bet On

With the help of Zacks Stock Screener , we have selected stocks that sport a Zacks Rank #1 (Strong Buy) or #2 (Buy) and a growth score of "A." Further, narrowing down the list with a projected EPS growth rate (F1/F0) of 20% or higher and long-term (3-5 years) growth rate of 20% or higher has helped us find 4 stocks that one could buy for Q4.

Delta Air Lines, Inc.DAL : The Georgia-based company provides scheduled air transportation for passengers and cargo worldwide by operating through two segments, Airline and Refinery. The company's latest earnings beat marked the tenth consecutive quarter of earnings outperformance at the company. Moreover, we are impressed by Delta's efforts to enhance its shareholders' wealth through dividends and share buybacks.

Zacks Rank #1

Growth Score: 'A'

Projected EPS Growth (F1/F0): 39.1%

Long-term EPS Growth: 20.7%

Meritor, Inc.MTOR : The Michigan-based company designs, develops, manufactures, sells, markets, distributes, services and supports integrated systems, modules and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation and industrial sectors. Meritor's commitment to the M2016 plan, upbeat earnings guidance for fiscal 2015 and favorable long-term agreements assure continuation of the earnings growth ahead.

Zacks Rank #1

Growth Score: 'A'

Projected EPS Growth (F1/F0): 44.1%

Long-term EPS Growth: 26.0%

BJ's Restaurants, Inc.BJRI : The California-based company owns and operates casual dining restaurants under the BJ's Restaurant and Brewery, BJ's Restaurant and Brewhouse or BJ's Pizza & Grill brand names. We are encouraged by BJ's Restaurants' menu innovation and marketing and operational initiatives that would boost sales in the upcoming quarters. The company's earnings have beaten the Zacks Consensus Estimate for five quarters in a row.

Zacks Rank #2

Growth Score: 'A'

Projected EPS Growth (F1/F0): 50.9%

Long-term EPS Growth: 20.1%

Mohawk Industries Inc.MHK : The Georgia-based company designs, manufactures, sources, distributes and markets flooring products for residential and commercial applications for remodeling and new constructions worldwide. Mohawk Industries' strong and diverse brand portfolio and leading market share position are encouraging. Moreover, an opportunistic approach to acquisitions is an important part of the company's growth strategy.

Zacks Rank #2

Growth Score: 'A'

Projected EPS Growth (F1/F0): 25.1%

Long-term EPS Growth: 20.9%

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BJ'S RESTAURANT (BJRI): Free Stock Analysis Report

DELTA AIR LINES (DAL): Free Stock Analysis Report

MOHAWK INDS INC (MHK): Free Stock Analysis Report

MERITOR INC (MTOR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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