With companies getting ready to report Q1 earnings, here’s a look at the fastest-growing stocks with big expectations. Square (SQ), Polaris (PII), RH (RH), 360 DigiTech (QFIN), MarineMax (HZO) and Williams Sonoma (WSM) are among 27 growth stocks expecting at least a 100% earnings increase in Q1 or their next fiscal quarter report.
Academy Sports & Outdoor (ASO) leads the list, with analysts looking for a 4,900% earnings bounce in Q1. Since going public less than seven months ago, ASO stock has quickly earned a spot among the best IPOs to buy and watch.
Academy Sports Among Fastest Growing Stocks
Starting as a tire shop in San Antonio in 1938, today Academy Sports & Outdoor is a sporting goods and outdoor recreation retailer operating over 250 stories in 16 states. The company was bought by KKR (KKR) in 2011 and went public in October 2020.
The upward trajectory of the relative strength line reflects the sharp run-up the stock has seen since its market debut. The company has posted average annual EPS growth of 85% over the last three years and earns an A SMR Rating, which tracks sales growth, profit margins and return on equity.
Academy Sports just reported earnings for fiscal Q4 and 2020, which ended on Jan. 30. ASO stock has continued to rise on the news.
SQ Stock Among Best Growth Stocks Near Buy Points
Boosted by Bitcoin and rising demand for cashless, contact-free payments, SQ stock is trying to clear a 278.23 buy point, having just formed a handle. After lagging while it was building a new chart pattern, Square’s relative strength line is trying to regroup and trend higher. SQ stock retook its 10-week moving average in rising volume earlier this month but is now testing that benchmark line.
Fellow payment processing stock PayPal (PYPL) is showing similar action after announcing Crypto on Venmo earlier this week.
Additionally, Goldman Sachs (GS), Align Technology (ALGN), Logitech (LOGI), Generac (GNRC) Southern Copper (SCCO) and OneWater Marine (ONEW) are also among the fastest-growing stocks near new buy points.
The Best Mutual Funds Buy Into The Fastest-Growing Stocks
The latest list of new buys by the best mutual funds shows that top money managers have their eyes on many of the names on this list.
SQ stock, RH stock, ASO, PII, HZO stock, Williams Sonoma, Generac and Louisiana Pacific (LPX) and Kulicke & Soffa Industries (KLIC) are just some of the fastest-growing stocks and on the screen for new buys by top funds.
Meanwhile, in a further show of leadership among today’s fastest-growing stocks, many of these companies also earn placement on IBD’s premier stock lists.
Stocks On Key Lists
SQ stock, Generac and SCCO stock are on both the IBD 50 list of top growth stocks and the IBD Big Cap 20. Goldman Sachs is also among the top-rated large caps.
HZO stock, QFIN and Cowen (COWN) join several other growth stocks with big Q1 estimates on the IBD 50.
Jefferies Financial (JEF) has earned a spot on both the IBD 50 and Sector Leaders, IBD’s most stringent stock screen.
Find Top Growth Stocks Set To Report Earnings With IBD Stock Screener
Fastest-Growing Stocks Expecting 100% To 4,900% EPS Growth In Q1
Generated using MarketSmith, the stock screen below lists stocks expecting at least 100% EPS growth for the first quarter of 2021, or their equivalent fiscal year.
Each stock on the list must also meet the following criteria:
- 95 or higher Composite Rating
- 80 or better EPS Rating and RS Rating
- SMR Rating of A
- $12 or higher current share price
- Average daily trading volume of at least 400,000 shares
While earnings growth is one of the key CAN SLIM traits, it’s not the only one. When choosing which stocks to buy and watch, be sure to take a holistic look at the company and its stock.
General market direction, fundamental strength, chart action, institutional support and other factors are essential to understanding how to invest in stocks.
Check the Earnings Calendar to track when notable stocks are set to report.
|Company||Symbol||EPS Est Cur Qtr %||Comp Rating||EPS Rating||RS Rating||SMR Rating|
|Academy Sports & Outdoor||ASO||4,900||98||99||94||A|
|Jefferies Financial Grp||JEF||494||99||98||89||A|
|Kulicke & Soffa Ind.||KLIC||391||99||81||91||A|
|Goldman Sachs Group||GS||200||98||92||80||A|
|ASML Holding N.V.||ASML||197||99||95||83||A|
|Dick’s Sporting Goods||DKS||161||97||84||90||A|
|Western Alliance Bancorp||WAL||104||99||98||95||A|
|Logitech Intl Sa||LOGI||102||99||99||82||A|
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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View more information: https://www.investors.com/research/best-growth-stocks-to-buy-and-watch-q1-2021/