A string of strong quarterly reports from the retail sector is bringing the current earnings season to a strong end, but the overall market is still weary regarding the legal troubles that are mounting for President Trump after two former aides are found guilty of criminal charges and are headed to jail.
So far no evidence of wrong-doing has been presented against Trump, but concerns are mounting after his former lawyer and his former campaign manager have either been found guilty or reached plea deals in criminal charges brought against them.
The markets hate uncertainty, and when that uncertainty surrounds the president of the nation, markets will have a hard time building on recent gains despite how strong the underlying fundamentals of the market may be.
Make no mistake, it has been a good earnings season, and the overall economy remains in good shape. Unemployment is low, consumer spending is good, and recent tax reforms should help boost corporate earnings (at least in the short-term). However, President Trump’s legal woes, rising interest rates, and ongoing trade tensions between the U.S. and China all have the potential of derailing the market’s bull run.
With current economic conditions favorable, we definitely want to keep our money working in the market, but with so many uncertainties hanging over the market we want to make sure we put our money to work in stocks that have the best chance on building on recent gains. Using InvestorsObserver’s Stock Score Report as a starting point in our screening is a great option because the screener combines both technical and fundamental data when scoring the overall stock universe.
Combing both investing approaches in one screener is a powerful tool that investors can use to supercharge their portfolios with recent winners with the best chance of extending their bull runs.
Here are five of this week’s top scoring stocks to consider.
Home furniture an appliance retailer Conn’s Inc. (CONN) is currently trading just below its 52-week high following strong gains after its much better than expected Q1 report in June. With near perfect technical and fundamental scores, Stock Score Report gives CONN an overall score of 97, putting it near the very top of the overall stock universe. The company will next report earnings on September 6 and another set of better than expected numbers would help shares break out their current sideways trend. The consensus calls for earnings of $0.41 for the most recent quarter, but the market is looking for a big earnings beat, with a whisper number of $0.47. Earnings were down by an average annual rate of 22% over the last five years, but looking ahead analysts see strong growth, with a forecast growth rate of 25% per annum over the upcoming five years. CONN trades at $37.00 with an average price target of $43.20.
Textron Inc. (TXT) operates in the aerospace and defense sector. The stock has enjoyed steady gains over the last thirty months and is currently trading just below its 52-week range. Stock Score Report gives TXT an overall score of 89, with a near perfect short-term technical score of 98 and strong long-term technical and fundamental scores. Textron has shown average annual earnings growth of 12.6% over the last five years and looking ahead analysts expect profits to rise by 13.9% per annum over the next five years. The company most recently reported earnings mid-July, posting big beats on both the top and bottom line. TXT currently trades at $68.81 with an average price target of $73.60.
Global bank Toronto-Dominion Bank (TD) stock is currently just shy of its 52-week high, and Stock Score Report gives it an overall score of 89. TD has strong scores across the board, and the stock has a chance to build on its recent gains when it reports its next set of quarterly numbers on August 30. Over the last five years the company has managed to grow profits by 9.2% per annum, and over the next five years analysts see additional average annual earnings growth of 7.5%. The stock trades at $60.52 with an average price target of $65.87, which could get lifted following a better than expected quarterly report on the 30th.
Following a better than expected quarterly report on August 6, shares of Jacobs Engineering (JEC) gapped higher to a fresh 52-week high, and the stock is trading at its highest level in the last ten years. Stock Score Report gives JEC an overall score of 88. Earnings growth over the last five years has been modest, with profits rising an average 3.2% annually, but looking ahead analysts expect much stronger growth, with a forecast average annual growth rate of 16%. The strong growth estimates are pushing shares higher, but analysts believe there is still plenty of upside left in the stock. JEC trades at $73.02 while the 13 analysts that cover the stock have an average price target of $78.60.
PetIQ (PETQ) manufactures and distributes medications for dogs and cats in the U.S., Canada and in Europe. The stock only went public last summer, and after trading sideways during its first year, shares moved sharply higher earlier this month following the company’s most recent quarterly report. While second-quarter earnings were well below the consensus, the company shattered its sales estimate and offered stronger than expected full year revenue guidance. The recent jump in share price gives the stock a 99 short-term technical score and a perfect 100 long-term technical score. Overall, Stock Score Report gives PETQ a score of 88. PETQ is currently trading at $38.30, above the $34.50 average price target that the four analysts who cover the stock have on it but following the strong sales number in the company’s recent quarterly report anlaysts are likely to boost their price targets on the stock.