5 Absolute Best Stocks Ruling the Market

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The tumultuous ride in the market has left investors edgy about picking the right stocks for their portfolio. Global economic headwinds like the Brexit episode, soft Euro zone growth, fluctuating commodity prices, plunging oil prices and adverse foreign currencies are far from easing.

This is mirrored by the single-digit growth in the two important market indices. So far this year, the Dow Jones Industrial Average (DJI) and the Standard & Poor’s 500 (S&P 500) have advanced by 6.73% and 7.00%, respectively.

True, the above headwinds have left a major impact on the financial markets around the world, and the U.S. is no exception.

That said, a recovering U.S. economy, stability in the job market, housing recovery and rising wages are providing some respite. Gross domestic product or GDP grew at a seasonally adjusted annual rate of 1.2% in the second quarter. Though the economy has grown at less than a 2% rate for three straight quarters, the gain marks an increase from the first quarter, when GDP advanced at a downwardly revised 0.8% pace.

Keeping in mind the positive momentum, we believe it is a good time for investors to take positions in the right stocks before a rate hike by the Fed and the presidential elections this year. Investors should keep in mind that despite the recent encouraging jobs data, the path of interest rates is remains shrouded as not all U.S. economic indicators have been positive.

Zacks Style Score

Here, we have used our latest style score system to zero in on five stocks with healthy prospects. The VGM Style Score is a useful tool that allows investors to gain an insight into a stock’s strengths and weaknesses.

Here “V” stands for Value, “G” for Growth and “M” for Momentum and the score is a weighted combination of these three metrics. The Growth Style Score concentrates the vital metrics from the company’s financial statements to get a true picture of the quality and sustainability of its growth. Our Momentum Style Score is a suggestion of the time to buy a stock to benefit from rally in share prices.

Our research shows that stocks with VGM Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 or Zacks Rank 2 (Buy) make solid investment choices.

Winning Picks

All the stocks selected herein flaunt a Zacks Rank #1 and have a VGM Score of ‘A.’ A Zacks Rank indicating “Strong Buy” translates into an upward trend in the stock’s earnings estimates.

Tyson TSN is the world’s largest fully-integrated producer, processor and marketer of chicken and poultry-based food products The company is part of an industry that has a Zacks Industry Rank of 23 out of 265 (Top 9%).

Tyson has a market cap of $27.33 billion and an expected EPS growth of 11%.

The stock sports Zacks Style Scores of “B” in Value and “A” in Growth and “D” in Momentum. It has a VGM score of “A” that is fueled by impressive growth and rising estimates.
 
AngloGold Ashanti Ltd. AU is based in South Africa and is involved in gold exploration and mining activities. The company is part of an industry that’s ranked 21 out of 265 (Top 8%) as per the Zacks Industry Rank.

AngloGold has a market cap of $7.93 billion and an expected EPS growth of 27.65%.

The stock sports Zacks Style Scores of “B” in Value and “B” in Growth and “A” in Momentum. It has a VGM score of “A” that is backed by solid growth and rising estimates.

Walnut Creek, CA-based Central Garden & Pet Company CENT is a leading producer and marketer of premium and value-oriented products focused on the lawn & garden and pet supplies markets in the U.S. The company is in an industry that’s ranked 33 out of 265 (Top 12%) in the Zacks Industry Rank.

Central Garden has a market cap of $1.32 billion and an expected EPS growth of 10.00%. The stock sports Zacks Style Scores of “B” in Value and “A” in Growth and “B” in Momentum. It has a VGM score of “A” that is backed by its solid growth and rising estimates.

Deckers Outdoor Corp. DECK is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports, and other lifestyle-related activities.

The stock boasts a Zacks Rank #1 and VGM Score of “A”. Deckers Outdoor has a market cap of $2.17 billion and has a long term expected EPS growth of 10.84%.

The stock sports Zacks Style Scores of “A” in Value and “A” in Growth and “D” in Momentum. It has a VGM score of “A” that is backed by its solid growth and northward movement in estimates.

Healthways Inc. HWAY is a leading provider of specialized, comprehensive Health and Care Support programs and services with the Zacks Industry Rank in the top 29%.

Healthways has a long-term expected EPS growth of 13.33%.

The stock sports Zacks Style Scores of “C” in Value and “A” in Growth and “A” in Momentum. It has a VGM score of “A” that is backed by its solid growth trajectory and escalating estimates.

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
 
TYSON FOODS A (TSN): Free Stock Analysis Report
 
ANGLOGOLD LTD (AU): Free Stock Analysis Report
 
CENTRAL GARDEN (CENT): Free Stock Analysis Report
 
DECKERS OUTDOOR (DECK): Free Stock Analysis Report
 
HEALTHWAYS INC (HWAY): Free Stock Analysis Report
 
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