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Canadian Solar and 4 Other Incredible Growth Stocks

We invest in the stock market with a goal to maximize our wealth.

If we go by the above saying, the stock market is a place which has minted millionaires and has also seen people bite the dust. Without a doubt, investing in stocks is a risky affair, particularly when we rely on emotions, without a proper strategy or game plan. Even with a proper strategy, an investor can incur losses as nothing is assured in the volatile stock market. Investors need to have an appetite to digest losses in the quest of high returns from the market.

However, if we pick an investing strategy, according to our requirements and risk appetite, it will definitely lower the possibility of losses. Growth investing is one of the most popular stock selection techniques.

Growth investing, as the name suggests, offers a higher growth potential to the investors compared to other stocks in the same category. A feature of growth stocks is that they prefer to utilize the retained earnings in capital growth projects to churn out new products and develop new technology rather than making a dividend payment.

Where Are the Growth Stocks to Be Found?

Currently, alternate energy stocks will have greater growth potential from current levels given the increasing focus to lower emissions, per the Clean Power Plan laid down by the U.S. Environment Protection Agency in Aug 2015.

In addition, technology companies - particularly those focused on the Internet of Things - are changing the way we live. Ongoing research and development work in this space will continue to churn out new gadgets and technology and drive growth over the long term.

The restaurant industry is also benefiting from lower gas prices and a steady drop in the unemployment level. This has led to fatter wallets and more discretionary power for consumers.

How to Select the Right Stocks?

Growth investors primarily focus on the future potential of a company, with much less emphasis on current prices.

Now selecting the right growth stock among the existing choices can really be a challenging task. Finding a correct growth stock for your portfolio is made easy by our new style score system . Thanks to the system, we have been able to identify a handful of growth stocks which have incredible potential. Our proprietary research shows that stocks with a Growth Style Score of 'A' or 'B' when combined with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) offer the best investment opportunities in the growth investing space.

Amid ongoing debates about whether the Federal Reserve will hike rates by the end of 2015 or in 2016, let's focus on the growth stocks which will ensure increasing wealth over the long term. A strong history of earnings surprises and the potential to record higher earnings growth in the future are additional attributes of these stocks.

Our Picks

On top of the list is Canadian Solar Inc.CSIQ , a vertically integrated manufacturer of silicon ingots, wafers, cells, solar modules (panels) and custom-designed solar power applications. The company designs, manufactures and delivers solar products and solar system solutions for both on-grid and off-grid use to customers worldwide.

Canadian Solar holds a Zacks Rank #2 (Buy) and has a Growth Style Score of 'A.' The company has expected long-term earnings growth of 20%. The average positive earnings surprise in the last four quarters was 90.96%.

Amazon.com, Inc . AMZN requires no introduction. The largest online retailer, with extensive operations in North America, is fast spreading across the globe. The company reports revenues under two broad heads - North America and International - which generated 62% and 38% of 2014 revenues.

Amazon.com holds a Zacks Rank #2 (Buy) and has a Growth Style Score of 'A.' The company has expected long-term earnings growth of 35.58%. The average positive earnings surprise in the last four quarters was 147.97%.

Ellie Mae, Inc.ELLI provides on-demand software solutions and services for the residential mortgage industry in the U.S.

Ellie Mae holds a Zacks Rank #1 (Strong Buy) and has a Growth Style Score of 'A.' The company has expected long-term earnings growth of 21.67%. The average positive earnings surprise in the last four quarters was 205.0%.

GigOptix, Inc.GIG is a fabless semiconductor manufacturer, providing electronic engines for the optically connected digital world. It engages in the design and manufacture of high speed integrated circuits that connect the optical and electronic domains.

GigOptix holds a Zacks Rank #1 (Strong Buy) and has a Growth Style Score of 'A'. The company has expected long-term earnings growth of 20%. The average positive earnings surprise in the last four quarters was 100.0%.

BJ's Restaurants, Inc.BJRI owns and operates a chain of 169 high-end casual dining restaurants in the U.S. (as of Sep 29, 2015). BJ's serves its signature deep-dish pizzas, salads, sandwiches, burgers, pastas, steaks and its own hand-crafted beers.

BJ's Restaurants holds a Zacks Rank #1 (Strong Buy) and has a Growth Style Score of 'A.' The company has expected long-term earnings growth of 20.09%. The average positive earnings surprise in the last four quarters was 30.63%.

To Conclude

The primary objective of this style of investing is to sustain growth and build up from current positions. Management's ability to control costs and funnel investments in the proper direction also plays an important role. The above mentioned growth stocks are forging ahead and with their strong ranks and straight A's, they would make any portfolio proud.

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

AMAZON.COM INC (AMZN): Free Stock Analysis Report

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

CANADIAN SOLAR (CSIQ): Free Stock Analysis Report

ELLIE MAE INC (ELLI): Free Stock Analysis Report

GIGOPTIX INC (GIG): 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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