The process of investing can frequently resemble a labyrinth, however, there is one guiding star that has always directed us towards enhanced returns: Zacks Rank. In 1988, if you had invested in stocks that were ranked number one by Zacks, you would have experienced an average growth of +23.7% per annum. This is not merely a streak of luck but rather a sound strategy grounded in credible financial analysis.
Here we are looking at seven exceptional companies from the select list of over 200 Zacks Rank #1 stocks. Just 5% of all Zacks’-covered stocks belong to these firms whose performances for the next month may surpass those of the market. Let us explore why these firms attract investors’ attention.
Top 5 stocks of the month No 1:Bioventus (BVS): A Leader in Medical Technology
Data from October 2023 has been used to train you, though! A class of musculoskeletal diseases usually requires orthobiologic products which are utilised by Bioventus that is a medical technology company. It has consistently surpassed the Zacks Consensus for all the last three quarters thus showing resilience through strong earnings history, while average earnings surprises over the last four quarters have been at an amazing percentage of 102%.
The other day some earnings estimates for 2024 have surged from $0.27 to $0.40 in less than a month and they went up from $0.43 to $0.45 on 2025’s category as well. With a forecasted sales growth of 9.45% in 2024 and an additional 5% increase projected for 2025, Bioventus is expected to benefit from higher turnovers amidst improving margins which rose from 1% three quarters ago to 5.7%.
Financial Performance Overview
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Key Factors Driving Growth
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Product Innovation: Bioventus' ability to innovate within the musculoskeletal treatment sector has allowed it to expand its market share.
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Higher Operating Margins: Operating margins have jumped significantly, showcasing the company's ability to optimize costs while increasing sales.
Peer Comparison: Medical Technology Sector
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Top 5 stocks of the month No 2: CarGurus (CARG): Driving the Future of Automotive Sales
This is a leading online automotive marketplace that connects buyers and sellers of new and used cars through advanced technology and data analytics. The company has garnered interest from analysts for this year and next, with several raising their earnings estimates. Six analysts have recently changed their estimates for 2024 upwards while four have done so for 2025 in the past month alone.
Consequently, the Zacks Consensus Estimate for 2024 has moved from $1.45 to $1.62 while the estimate for 2025 has moved from $1.75 to $1.88 respectively. This implies an expected EPS growth of 31.71% this year followed by another 15.64% next year after that; however, a slight revenue contraction of 3.4% will occur in 2020 before bouncing back with 8.2% growth in 2025 according to forecast levels
Financial Performance Overview
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Market Positioning and Growth Drivers
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Platform Innovation: CarGurus' advanced search algorithms and data analytics give it an edge over competitors like Autotrader and eBay Motors.
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Focus on Efficiency: The company is cutting costs and optimising operations, leading to increased profitability despite a dip in revenue.
Peer Comparison: Online Marketplace Sector
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Monday, 09 September 2024