Amid widespread volatility, the Wall Street is back in the green territory for the year. The impressive run in the stocks last week has helped the Dow Jones and the S&P 500 index to attain this level.
Meanwhile, gains for the Nasdaq Composite Index expanded, taking the lead this year, climbing 7.2%.
Tech Sector Boost
Most of the surge came from the technology stocks following the power-packed earnings. The market darlings, known as the FAAMNG group, which comprises Facebook Inc (NASDAQ:FB), Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), Netflix, Inc. (NASDAQ:NFLX) and Alphabet Inc (NASDAQ:GOOGL) had slipped into deep correction territory in late March. However, these managed to bounce back and restore positive sentiments with better-than-expected results and optimism for future growth.
Facebook shrugged off worries over the data-privacy scandal involving Cambridge Analytica that broke in mid-March, while Apple eased concerns over weak iPhone demand and greeted investors with a big capital return program plus Warren Buffett’s increased stake in the firm.
The fast-growing cloud computing business powered both Amazon and Microsoft’s growth story. Notably, Microsoft seems on track to record its strongest annual revenue growth for more than a decade. Netflix came up with blockbuster results while Alphabet’s numbers were also inspiring.
Apart from these, semiconductor firms like Advanced Micro Devices, Inc. (NASDAQ:AMD) and Intel Corporation (NASDAQ:INTC) and payment companies including Visa Inc (NYSE:V) and PayPal Holdings Inc (NASDAQ:PYPL) also fueled the rally and instilled confidence in the sector.
Oil price has zoomed to the highest levels in more than three and a half years buoyed by potential export disruptions in Iran and falling production in Venezuela. Additionally, the historic output cut deal by OPEC, Russia and other producers to curb production is paying off, paving the way for a rebalancing of the oil market despite rising U.S. production. The rally in the commodity has lent major optimism to the energy sector, pushing many stocks to new highs.
Stronger-than-expected earnings are providing the biggest catalyst. Total Q1 earnings for the 444 S&P 500 companies that have reported results so far are up 24.5% from the same period last year on 9.3% higher revenues, with 77.7% beating EPS estimates and 75% beating revenue estimates. Notably, the Q1 earnings season is on track to record its best quarter in seven years.
Additionally, signs of easing trade worries between China and the United States as well as April inflation data raised the appeal for riskier assets lately. This is because soft inflation numbers have alleviated the month-long aggressive rake hikes concern.
Given the improving macro backdrop, many stocks have been surging. Below, we have highlighted those five stocks that have been leading the way higher this year and are poised to continue their bullish trend given that these have a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Top-Ranked Stocks Leading the Market Rally This Year: Turtle Beach Corp (HEAR) – Up 784.7%
California-based audio technology company Turtle Beach Corp (NASDAQ:HEAR) designs audio products for consumer, commercial and healthcare markets.
The stock saw solid earnings estimate revision of 36 cents for this year over the past one month and has an estimated earnings growth rate of 404.17%.
Turtle Beach has a Zacks Rank #1 and a VGM Score of A.
Top-Ranked Stocks Leading the Market Rally This Year: W&T Offshore, Inc. (WTI) – Up 136.6%
Texas-based independent oil and natural gas company W&T Offshore, Inc. (NYSE:WTI) focuses primarily on the Gulf of Mexico area, including the deep water.
The Zacks Consensus Estimate for 2018 has moved up by couple of cents over the past 60 days, representing year-over-year growth of 7.14%.
The stock has a Zacks Rank #2 and a VGM Score of A.
Top-Ranked Stocks Leading the Market Rally This Year: Profire Energy, Inc. (PFIE) – Up 122.4%
Utah-based oilfield technology company Profire Energy, Inc. (NASDAQ:PFIE) provides burner- and chemical-management products and services for the oil and gas industry primarily in the United States and Canada.
For this year, the stock saw positive earnings estimate revision of three cents over the past seven days and has an estimated growth rate of 55.56%.
It has a Zacks Rank #2 and a VGM Score of B.
Top-Ranked Stocks Leading the Market Rally This Year: Axon Enterprise Inc (AAXN) – Up 116.1%
Arizona-based Axon Enterprise Inc (NASDAQ:AAXN) is engaged in the development, manufacture and sale of conducted electrical weapons for the law enforcement, federal, military, corrections, private security and personal defense markets.
The Zacks Consensus Estimate for 2018 has moved up from 39 cents to 58 cents over the past seven days and the expected growth rate is 28.89%.
Axon Enterprise has a Zacks Rank #1 and a VGM Score of D.
Top-Ranked Stocks Leading the Market Rally This Year: Tenet Healthcare Corp (THC) – Up 115.6%
Tenet Healthcare Corp (NYSE:THC) is a Texas-based multinational investor-owned healthcare services company.
The stock saw solid earnings estimate revision of 54 cents over the past month for this year and has an expected growth rate of 82.72%.
It has a Zacks Rank #2 and a VGM Score of B.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.