Growth stocks have been favored by investors over the last decade thanks to their ability to borrow cheap capital, innovate quickly, and acquire other businesses with ease. Last year, growth stocks performed exceptionally well thanks to…
new trends driven by the COVID-19 pandemic. This is evidenced by the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 31.1% returns over this period versus the broader index’s 18.2% gains.
While progress on the mass vaccination and economic recovery fronts has this year caused investors to rotate away from expensive growth stocks to quality bargains, some stocks look sufficiently promising to generate growth in the recovering economy. In fact, the post-pandemic economy is expected to see the emergence of a new class of growth stocks that will capitalize on the economy’s partial return to “analog” activities.
Becton Dickinson & Co. (BDX – Get Rating), Laboratory Corporation of America Holdings (LH – Get Rating), and Generac Holdings Inc. (GNRC – Get Rating) are companies that have been experiencing high growth in terms of both revenue and EPS. So, we think these stocks could be great picks now.
Becton Dickinson & Co. (BDX – Get Rating)
BDX focuses on providing medication management and patient safety solutions. The company’s solutions include respiratory care, improving drug delivery, supporting the management of diabetes, and more. BDX has gained 2.9% over the past year to close yesterday’s trading session at $244.62.
BDX has announced plans to invest $65 million to improve key supply chain infrastructure in Tucson, Arizona. The company recently received emergency-use authorization for its coronavirus testing solution.
BDX’s trailing-12-month revenue has grown at a CAGR of 10.2% over the past five years. Its BDX’s trailing-12-month ebitda has grown at a CAGR of 17.1% over the past three years.
BDX is expected to see 14.8% revenue growth for the quarter ended March 31, 2021 and 14.2% in 2021. The company’s EPS is estimated to grow 19.2% for the quarter ended March 31, 2021 and 12% per annum over the next five years.
BDX’s strong fundamentals are reflected in its POWR Ratings. The stock has a B overall rating, which equates to Buy in our proprietary ratings system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.
It has an A grade for Growth and Sentiment, and B for Stability and Value. In the Medical – Devices & Equipment industry, it is ranked #30 of 183 stocks.
In total, we rate BDX on eight different levels. Beyond what we stated above we have also given BDX grades for Momentum, and Quality. Get all the BDX ratings here.
Click here to checkout our Healthcare Sector Report for 2021
Laboratory Corporation of America Holdings (LH – Get Rating)
LH operates as an independent laboratory company. The company has global operations. It recently added a high sensitivity antigen test to screen for coronavirus infection. The company has also been awarded a contract by the CDC to study COVID-19 variants and make public health responses better. LH has returned 99.3% over the past year to close yesterday’s trading session at $251.87.
LH is expected to see revenue growth of 38.7% for the quarter ended March 31, 2021 and 2.2% in 2021. The company’s EPS is estimated to…
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