After last year’s bear market, a new crop of growth stocks has emerged. Here’s a look at 11 companies, including Allegro Microsystems (ALGM), dpd (PDD) and Palo Alto Networks (PANW), who expect earnings growth of 50% to 166% in 2023 or their current fiscal year.
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Liquefied petroleum gas carrier Dorian LPG (LPG) tops the list, with analysts forecasting 166% EPS growth this year, year-over-year.
delta airlines (DAL), elf beauty (ELF), Shift4 Payments (FOUR) and financial LPL (LPLA) are also gaining places among the fastest growing stocks. Super Micro Computer (SMCI), ceridian (CDAY) and horizon champion (SKY) complete the list.
In addition to having EPS estimates of at least 50% for the current year, companies must meet the following criteria to perform this action screen.
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Breakouts and Buy Zones in Top-Rated Growth Stocks
As the S&P 500 tests its 50-day moving average and the Nasdaq looks for support at its 21-day line, several names on this list have driven breakouts this year.
Dorian, ELF Beauty, Shift4, and Allegro Microsystems have also far exceeded their recent buy points. The strong rise in the relative strength line of ALGM shares and these other growth stocks clearly shows their leadership in the market.
Meanwhile, growth stocks on this screen that test current buy zones include stocks from SMCI, CDAY, LPLA, and PANW.
Delta Air Lines and homebuilder Skyline Champion are preparing potential new moves. DAL shares look to fly past a buy point of 40.34 as travel and airline stocks continue to show strength.
China-based mobile phone retailer PDD, which recently changed its name from Pinduoduo, remains among the best Chinese stocks to buy and watch. After a big gap in earnings in November, PDD shares rallied through late January before pulling back. It has now pulled back below its 10-week line.
Top 11 Stocks Expecting Big Gains in 2023
Created on MarketSmith, this stock screen highlights the fastest growing stocks that expect EPS to increase from 50% to 166% in 2023 or their current fiscal year.
But keep in mind that earnings growth is only part of the equation for how to make money in stocks. To balance your risk/reward ratio, be sure to take other factors into account, such as the general direction of the market and technical analysis.
Data as of March 9, 2023
| Company | Symbol | % of Current Year Estimated EPS | compensation classification | BPA Classification | RS Rating | SMR Classification |
|---|---|---|---|---|---|---|
| Dorian LPG | LPG | 166 | 99 | 95 | 97 | B. |
| dpd | dpd | 158 | 99 | 81 | 96 | TO |
| Super Micro Computer | SMCI | 83 | 99 | 99 | 98 | TO |
| elf beauty | ELF | 68 | 99 | 94 | 99 | TO |
| financial LPL | LPLA | 66 | 98 | 97 | 92 | B. |
| Allegro Microsystems | ALGM | 63 | 99 | 99 | 98 | TO |
| ceridian | CDAY | 61 | 98 | 95 | 89 | C. |
| delta airlines | DALL | 61 | 99 | 82 | 88 | TO |
| horizon champion | DARLING | 60 | 98 | 98 | 92 | TO |
| Palo Alto Networks | panw | 59 | 97 | 97 | 83 | TO |
| Shift4 Payments | FOUR | fifty | 98 | 80 | 97 | TO |
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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