Last year was volatile for the stock market with significant downward pressure at the beginning and bullish trends toward the end. Several matters including an economic slowdown in China, slump in oil prices, Brexit and global growth concerns led to the sluggish start. Nonetheless, gradual rebound in oil prices, the U.S.-Presidential election results and the Fed’s rate hike reversed this trend.
In the last one year, S&P 500 has jumped 18.5%, while Dow Jones Industrial Average (DJIA) soared 22.1%. This largely influenced by the improvement witnessed over the last two months. Riding on this rally, majority of the stocks saw a bullish trend.
Likewise, many stocks, at present, are at also at all-time highs. There are chances that these stocks could go downhill without any warning or scale new levels. So, you should carefully choose the stocks, otherwise you might end up losing your money.
Now, the biggest question is: can this rally continue in 2017? There are many factors, including the effectiveness of Trump administration, the Fed’s future steps, domestic economic growth and global matters, that will determine the fate of this rally.
Stocks with strong fundamentals and substantial growth potential are the clear winners, with lesser impact from the macro issues.
Selecting Large Caps Winners
To pick stocks that have already been winners and are expected to continue their run, we took the help of the Zacks Stock Screener. We have shortlisted stocks with a market capitalization of $3 billion or more and a VGM Score of A. Further, these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
To further cut short the list, we picked stocks that had gained 50% or more over the last 52 weeks. Moreover, these stocks are expected to witness 15% or more earnings growth over the next two years (F1 and F2).
Here are the top four stocks:
The Chemours Company CC, based in Wilmington, DE, provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. With a market cap of $3.9 billion, stock had surged 348.8% over the last 52 weeks. Further, over the next two years, the company’s earnings are projected to grow 99.6%.
Headquartered in Vancouver, Canada, Teck Resources Ltd. TECK explores, develops, and produces natural resources in the Americas, the Asia Pacific, and Europe. The stock jumped 565.5% over the last 52 weeks and has a market cap of $11.9 billion. Moreover, over the next two years, the company’s earnings are expected to increase 17.1%.
Applied Materials, Inc. AMAT, headquartered in Santa Clara, CA, provides manufacturing equipment, services, and software to the semiconductor, display, and related industries across the world. With a market cap of $34.5 billion, stock had risen 90.8% over the last 52 weeks. In addition, over the next two years, the company’s earnings are estimated to jump 42.3%.
Finisar Corporation FNSR, based in Sunnyvale, CA, provides optical subsystems and components for data communication and telecommunication applications globally. The stock increased 122.9% over the last 52 weeks and has a market cap of $3.2 billion. Also, the company’s earnings are anticipated to increase 271.9%, over the next two years.
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