After last year’s bear market, a new crop of growth stocks has emerged. Here’s a look at 11 companies, including Allegro MicroSystems (ALGM), PDD (PDD) and Palo Alto Networks (PANW), expecting 50% to 166% earnings growth in 2023 or their current fiscal year.
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Liquefied petroleum gas shipper Dorian LPG (LPG) tops the list, with analysts forecasting 166% EPS growth this year, on a year-over-year basis.
Delta Air Lines (DAL), ELF Beauty (ELF), Shift4 Payments (FOUR) and LPL Financial (LPLA) also earn spots among the top growth stocks. Super Micro Computer (SMCI), Ceridian (CDAY) and Skyline Champion (SKY) round out the list.
In addition to having EPS estimates of at least 50% for the current year, companies must meet the following criteria to make this stock screen.
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Breakouts And Buy Zones In Top-Rated Growth Stocks
As the S&P 500 slices below its 50-day moving average and the Nasdaq looks for support at that benchmark, several names on this list fight to keep powering beyond their recent breakouts.
Dorian, ELF Beauty, Shift4 and Allegro Microsystems have also cruised beyond their recent buy points this year. The sharp rise in the relative strength line for ALGM stock and other growth stocks clearly shows their market leadership. How they fare going forward will largely depend on how the market indexes hold up.
Meanwhile, growth stocks from this screen testing current buy zones and their mettle amid market pressure include SMCI, CDAY, LPLA and PANW stock.
Delta Air Lines and homebuilder Skyline Champion are setting up potential new moves. DAL stock is trying to fly through the market turbulence and clear a 40.34 buy point amid this year’s rebound in travel and airline stocks.
China-based mobile retailer PDD, which recently changed its name from Pinduoduo, remains among the best Chinese stocks to buy and watch. After a big gap-up on earnings in November, PDD stock rose until late January before pulling back. On Thursday, it gapped down below its 50-day line as the market sold off.
11 Top Stocks Expecting Big Gains In 2023
Created in MarketSmith, this stock screen highlights top growth stocks expecting a 50%-166% EPS increase in 2023 or their current fiscal year.
But note that earnings growth is just one part of the equation for how to make money in stocks. To balance your risk/reward ratio, be sure to take into account other factors such as overall market direction and technical analysis.
Data as of March 9, 2023
| Company | Symbol | EPS Est Cur Yr % | Comp Rating | EPS Rating | RS Rating | SMR Rating |
|---|---|---|---|---|---|---|
| Dorian LPG | LPG | 166 | 99 | 95 | 97 | B |
| PDD | PDD | 158 | 99 | 81 | 96 | A |
| Super Micro Computer | SMCI | 83 | 99 | 99 | 98 | A |
| ELF Beauty | ELF | 68 | 99 | 94 | 99 | A |
| LPL Financial | LPLA | 66 | 98 | 97 | 92 | B |
| Allegro MicroSystems | ALGM | 63 | 99 | 99 | 98 | A |
| Ceridian | CDAY | 61 | 98 | 95 | 89 | C |
| Delta Air Lines | DAL | 61 | 99 | 82 | 88 | A |
| Skyline Champion | SKY | 60 | 98 | 98 | 92 | A |
| Palo Alto Networks | PANW | 59 | 97 | 97 | 83 | A |
| Shift4 Payments | FOUR | 50 | 98 | 80 | 97 | A |
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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Source: https://www.investors.com/research/growth-stocks-to-buy-and-watch-2023/?src=A00220&yptr=yahoo