Here at Zacks, we utilize a system that emphasizes earnings estimates and earnings estimate revisions to find high quality stocks that are poised to outperform the market over the next one to three months.
From 1988 through 2016, our proven Zacks Rank system more than doubled the S&P 500 with an average gain of +25% per year. Nevertheless, like any stock-rating method, it has its uncertainties.
Because it is a short-term system, and because earnings estimate revisions can happen erratically, there’s really no telling how long a stock will last on our Zacks Rank #1 (Strong Buy) list. This makes it even more impressive when a stock finds a home on our #1 list and is able to consistently provide impressive returns for months.
We’ve operated in a strong bull market for some time now, and despite a few recent periods of volatility, the stock market at large remains near its all-time highs. However, some stocks have been able to stick out from the rest, including several that have remained a Zacks Rank #1 (Strong Buy) for an impressive amount of time.
Check out three of these particularly successful Strong Buy stocks below:
Lam Research Corporation (LRCX)
Lam Research Corporation (NASDAQ:LRCX) is a manufacturer of semiconductor processing equipment used in the fabrication of integrated circuits. The stock was given a Zacks Rank #1 (Strong Buy) on April 21, making it the longest-reigning company on the list right now. Since then, LRCX has gained a whopping 16.1%, outpacing the S&P 500’s modest 4.2% gain over that same time. Lam Research is also currently sporting an “A” grade in the VGM category of our Style Scores system, which truly underscores its overall strength.
CAI International Inc (CAI)
Shipping container leaser CAI International Inc (NYSE:CAI) has been on fire all year, and when it was added to the Zacks Rank #1 (Strong Buy) list on April 22, the stock had already gained 115% in 2017. Nevertheless, CAI has soared an additional 60% since being added to the list, and it has showed very little signs of stopping. Just today, the stock once again touched a new all-time high. Interestingly enough, CAI is also sporting an “A” grade for Value, meaning that it could still be a solid pick for value-minded investors.
Ryanair Holdings plc (ADR) (RYAAY)
Ryanair Holdings plc (ADR) (NASDAQ:RYAAY) was assigned a Zacks Rank #1 (Strong Buy) on May 17. On that day, shares of the value airliner closed at $99.93. Roughly three and a half months later, Ryanair is trading at $114.15 per share, which represents a gain of 14.2%—well beyond the S&P 500’s gain of just 3.8%. This airline stock is also displaying impressive growth prospects, including projected EPS growth of 35% and estimated sales growth of 13% for the current fiscal year, which have helped it gain an “A” grade for Growth in our Style Scores system.
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Zacks’ 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
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