As we continue to move deeper into earnings season, the stocks ranked as “strong buys” by Portfolio Grader are turning in stellar performances. These companies are showing the types of powerful sales and earnings growths that are the hallmarks of the very best stocks.
When a company displays such earnings growth and momentum, the big money sits up and takes notice. The buying pressure from these big funds and institutions pushes these stocks higher and turns our “strong buy” stocks into market leaders.
Here are three stocks that are receiving big pushes from institutional buying pressure:
Apogee (APOG)
Apogee (APOG) reported earnings last week, and the results show why Apogee is best in class. Apogee’s revenue was up 30% year over year, and earnings-per-share rose by 67% year over year.
As commercial real estate activity picks up across the U.S., Apogee said that its architectural glass products were seeing strong demand from builders. The backlog at Apogee is up 58%. So, it looks the good times are just getting started for Apogee.
Apogee stock was upgraded to an “A” two weeks ago and is a “strong buy” right now.
Douglas Dynamics (PLOW)
Douglas Dynamics (PLOW) is also seeing stronger demand for its line of truck attachments that help folks do things like turf care, snow removal and industrial maintenance. While that may not sound like an exciting business Douglas Dynamics’ results are fantastic.
In the latest quarter, Douglas Dynamics reported earnings and sales growth of 52% year over year. Thanks to a continued focus on productivity and efficiency, Douglas Dynamics reached its highest level of profitability ever during the third quarter.
Investors should note that, in addition to powerful sales and profit growth, Douglass Dynamics is also a solid income choice with a 4.2% dividend yield. Portfolio Grader upgraded Douglas Dynamics to an “A” back in august and is a “strong buy” at the current price.
Open Text (OTEX)
Based in Canada, Open Text (OTEX) is the largest independent provider of Enterprise Information Management services. Open Text products help businesses manage information and arrange of secure transfer of information. Open Text reported earnings at the end of October, and the results were representative of Open Text’s ranking as one of the best stocks by Portfolio Grader.
Open Text’s sales grew by 40%, and margin expansion helped Open Text score big with year over year earnings growth of more than 100%. Open Text will be introducing more products, which should drive additional growth, next week at a conference at Walt Disney World. So, the future continues to look bright for Open Text and OTEX stock.
Portfiolio Grader upgraded Open Text stock to an “A” back in April, and thanks to the strong improvements in fundamentals, shares of Open Text remain a “strong buy” at the current price.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
