I’m very excited about the five stocks at the top of my Emerging Growth Buy List this month — these are some of the most powerful small-cap companies on Wall Street right now, and they are experiencing tremendous growth. In the past month alone, these five stocks jumped an average of nearly 11%, while the major indices posted a 2% gain.
Let’s take a look at my Top 5 Emerging Growth Stocks for April:
Monster Beverage Corporation
Monster Beverage Corporation (NASDAQ:MNST) is a play on the energy drink market; it is responsible for Monster, the second most popular energy drink in the nation. The company’s monster grip on the youth market makes it a fantastic takeover candidate by a larger beverage maker. Back in January, 100-year-old Hansen Natural Corp. revamped its brand by adopting the Monster Beverage name and ticker symbol. And, it looks like the company’s new look has piqued investor interest — the stock has gained 30% since then. Monster’s next earnings announcement is tentatively scheduled for early May, and it is already shaping up to have a strong showing.
Right now, analysts forecast 25% sales growth and 26.7% earnings growth — compared with the 20% earnings growth forecast for the rest of the Soft Drinks industry. Analysts have also been steadily increasing their earnings estimates, to the tune of 12% in the past two months. Typically, such aggressive earnings revisions precede future earnings surprises. This stock has been appreciating in a smooth, steady manner so I recommend that you add shares.
- Also from Louis Navellier: 6 Small Cap Stocks to Sell Now
Susser Holdings Corporation
Susser Holdings Corporation (NASDAQ:SUSS) is a great stock to hold if you want to profit from summer road trips. This company operates a system of 540 Stripes convenience stores and also supplies motor fuels to 560 dealers across the country. So, U.S. travelers are Sussers’ bread and butter. Higher diesel and gasoline prices continue to help to boost the company’s overall sales growth, so the summer months should be very good to this company. This company also has a history of blowout earnings surprises, trouncing estimates by 100%, 135%, 86% and 61% in the past four quarters.
And the way things are shaping up, Susser’s’ next earnings announcement (due in late May) should be equally stunning. Currently analysts are looking for 16% sales growth and 100% earnings growth — that’s compared with the 18.4% forecast for the rest of the Grocery Stores industry. And, in the past two months, analysts have upwardly revised their estimates by 200%. There is still plenty of time until Susser’s earnings announcement, so now is a great time to plan ahead and pick up shares.
Questcor Pharmaceuticals Inc.
Questcor Pharmaceuticals Inc. (NASDAQ:QCOR) has been a Top 5 veteran for some time now. It specializes in prescription drugs for central nervous system disorders, and its primary product, H.P. Acthar Gel, is used to treat multiple sclerosis. Lately, I have been getting questions on why I’ve kept Questcor on the Top 5 despite the fact that it has been sitting still recently. Well, one thing that you should know about Questcor is that it is what I like to call a “bunny” stock. This means it tends to “sit” during the quiet times and then suddenly “hop” on good earnings news. So, just because a stock has been sitting for a little while doesn’t mean that it doesn’t have explosive profit potential. In the case of Questcor, this company is headed towards a stunning earnings announcement, so I fully expect it to hop when it announces earnings in late May.
Currently, analysts expect the drugmaker to grow sales by 136.4% and earnings by 155%, while the rest of the biotechnology industry is headed towards just 16.9% earnings growth. This company has a strong history of earnings surprises — in the past four quarters it has trumped expectations by 17.6%, 15%, 42% and 11.9% respectively. Finally, in the past two months, analysts have upwardly revised their estimates by 21%, so it looks like the company will post another double-digit surprise this quarter. With this in mind, I recommend that you purchase shares of this stock.
Plains All America Pipeline L.P.
Plains All America Pipeline L.P. (NYSE:PAA) is involved with the transportation and storage of crude oil, so it has been profiting from the latest boom in gasoline prices. Better yet, this company has been aggressively expanding its footprint through five strategic acquisitions totaling $2.3 billion dollars. Notably, the company is acquiring British Petroleum’s (BP) Canadian natural gas liquid business for $1.67 billion; this deal is expected to close by the end of the second quarter. To fund this acquisition, Plains recently completed a five million-share secondary offering at $80.03 per share in early March. Now, secondary offerings tend to depress stock share prices, but this presents the perfect opportunity to get in at a good level with this stock.
Tessco Technologies Inc.
TESSCO Technologies Inc. (NASDAQ:TESS), provides a broad range of products that support mobility and data wireless systems to organizational clients in the U.S. And TESSCO’s business is booming. At the end of March, management announced that the company has been awarded a five-year contract by Western States Contracting Alliance (WSCA). WSCA is a state purchasing cooperative association, and it needs TESSCO to provide mobile device accessories to state agencies nationwide. TESSCO will accomplish this through its extensive network with the best manufacturers in the industry. At this time, every state in the union, including their agencies and employees, is eligible to participate. No financial details have been released yet, but this will undoubtedly boost TESSCO’s top line.
Looking ahead, analysts forecast 40.6% sales growth and 95.2% earnings growth for this quarter. TESS remains a strong buy.