Everyone has their eyes set on Friday’s speech from Fed Chair Powell. The Jackson Hole presentation has the power to rock this market. If we get confirmation of rate hikes in September, then the market will likely rejoice. If we get the opposite, then it’s look out below.
These sort of macro headlines and risks are never going away. There’s always a risk du-jour that markets have to contend with. Keep your eyes on the prize and focus on the long-term, that is the way to win. Focus your efforts on stocks with strong earnings trends likely to continue to grow over time. One way to find these stocks is by leaning on the Zacks Rank. Stocks in the good graces of our Zacks Rank have the strongest earnings trends.
One such stock is today’s Bull of the Day, Zacks Rank #1 (Strong Buy) CarGurus (CARG). CarGurus, Inc. is an online automotive marketplace connecting buyers and sellers of new and used cars. The company uses proprietary technology, search algorithms and data analytics. It operates primarily in Canada, the United Kingdom and Germany.
The Automotive – Replacement Parts industry is in the Top 3% of our Zacks Industry Rank. While we categorize this company in that industry, it’s a bit of a misnomer based on its underlying business. However, the stock is currently a Zacks Rank #1 (Strong Buy). The reason for the favorable rank is that several analysts have increased their earnings estimates for the current year and next year. Over the last thirty days alone, six analysts have upped the ante for this year while four have done so for next year. The bullish sentiment has increased our Zacks Consensus Estimate for the current year from $1.45 to $1.62 while next year’s number is up from $1.75 to $1.88.
Image Source: Zacks Investment Research
That means that current year EPS growth calls for 31.71% growth while next year’s is up 15.64%. That’s on a revenue contraction of 3.4% this year and forecasted revenue growth of 8.2% next year.
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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.
