A quick way to find the best growth stocks is to home in on 99 IBD Ratings. These seven stocks come from varying industries and have scored perfect 99 Composite and Relative Strength Ratings.
IBD's proprietary Composite Rating measures five categories, weighting the Earnings Per Share Rating and RS Rating more heavily, while incorporating the retracement off the stock's 52-week high. A 99 RS Rating means the stock has outperformed 99% of the stocks in the IBD database in the last 12 months.
These seven growth stocks are now extended following robust earnings reports. But with perfect IBD Ratings, they bear watching now for when they again set up and present buy points. Five of the stocks gained well over 100% this year so far. Let's see why investors were so keen on these names.
Growth Stocks: ELF Beauty Gains 142%
ELF Beauty stock made the stock screen list once again. The growth stock soared over 14% after the company reported higher-than-expected fiscal first-quarter earnings and sales on Aug. 1.
Quarterly earnings grew an astounding 182% over last year's same quarter, following 223% and 100% growth in the prior two quarters. Sales grew a healthy 76% last quarter, which was a small dip from 78% the previous quarter and up from 49% two quarters ago. What's more, the cosmetics and skin care company raised its fiscal 2024 adjusted EPS guidance.
Analysts project 44% annual earnings growth in fiscal 2024 and 13% in 2025.
Growth stock Extreme Networks rallied after the company reported a beat on fiscal fourth-quarter EPS and revenue on Aug. 2, and gave first-quarter revenue guidance above analysts' projections.
The network infrastructure company's profit grew a hearty 120% over last year's lackluster quarter. Sales growth accelerated to 31% from 16% and 13% in the prior two quarters.
Modine Manufacturing stock gapped up over 13% after the company easily beat fiscal first-quarter profit and sales forecasts on Aug. 2, and raised its fiscal 2024 sales guidance.
The heating and air conditioning component maker reported impressive 166% quarterly EPS growth on 15% sales growth.
Electric Systems Company's Profit To Grow 900%
Powell Industries also reappeared on the list as its stock rose 129% this year. The electrical equipment and systems maker posted a stellar second quarter, with $1.52 EPS vs. 13 cents in last year's quarter. Sales growth accelerated to 42% from 34% and 19%.
Analysts expect 2023 EPS of $3.52, compared with 35 cents in 2022, or an over 900% increase. The company designs and manufactures electrical power systems.
Vertiv Holdings also posted an outstanding quarter, with second-quarter EPS of 46 cents, compared with 10 cents a year ago. The growth stock gapped up over 29% on Aug. 2 in very heavy volume, following the earnings release.
Sales grew 24%, about average for the last three quarters. Analysts expect 2023 earnings growth of 194% and another 24% next year. Vertiv designs and makes digital infrastructure, including equipment, software and services, for data centers and communication networks.
Sterling Infrastructure gapped up over 22% after the company reported better-than-expected second-quarter earnings and revenue and raised its 2023 EPS and sales guidance on Aug. 7.
The building and transportation infrastructure company reported improved 37% earnings growth, up from 8% in the prior quarter, but down from the steep 74% two quarters ago.
Weatherford International has shown remarkable earnings growth for the last four quarters, after posting numerous losing quarters. Sales growth has ranged from 20% to 26% in the last three quarters.
Analysts forecast 491% 2023 earnings growth and another 39% next year for the energy services provider.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
