4 Hot Stocks to Add to Your Growth Portfolio
With interest rates remaining at near-zero levels, supportive government policies have been driving the growth prospects of several companies. As such...
With interest rates remaining at near-zero levels, supportive government policies have been driving the growth prospects of several companies. As such, we think it could be wise to bet on Regeneron (REGN), Energy (ET), Teradata (TDC) and Alkermes (ALKS) because they possess solid growth attributes and have immense upside potential. Read on.
Growth stocks, particularly those from the technology sector, did not make a great start to 2021 as investors rotated away from expensive growth stocks to quality cyclical stocks to capitalize on the economic recovery. However, investors' interest in quality growth stocks has been growing lately, with the expectation that supportive fiscal and monetary policies will help them achieve solid growth in the coming quarters. This sentiment is evident in the SPDR Portfolio S&P 500 Growth ETF's (SPYG) 4.9% returns over the past month versus the SPDR Portfolio S&P 500 Value ETF's (SPYV) 1.7% loss and the SPDR S&P 500 Trust ETF's (SPY) 1.4% gain over the same period.
Even though the Federal Reserve signaled that at least two interest rate hikes are expected in late 2023, current interest rates have been left at near-zero levels. Moreover, jobless claims continued to fall this week and the U.S. real GDP is expected to rise 9% in the second quarter. These factors should bode well for stocks that possess solid growth attributes.
So, we think it could be wise to bet on red-hot growth stocks Regeneron Pharmaceuticals, Inc. (REGN), Energy Transfer LP (ET), Teradata Corporation (TDC) and Alkermes plc (ALKS). They have rallied over the past few months and hold immense upside potential.
Regeneron Pharmaceuticals, Inc. (REGN)
REGN discovers, invents, develops, manufactures, and commercializes medicines for various medical conditions worldwide. It has collaborations with Zai Lab Limited (ZLAB), Intellia Therapeutics, Inc. (NTLA), and Biomedical Advanced Research Development Authority, as well as an agreement with the U.S. Department of Health and Human Services.
On June 16, the Tarrytown, New York company announced positive results regarding its REGEN-COV. It was found that the therapy reduced the risk of death by 20% in patients hospitalized with COVID-19 who had not mounted their own immune response. REGN further announced that it will share the new data with regulatory authorities immediately and request that the U.S. EUA be expanded to include appropriate hospitalized patients.
The company's revenue increased 38% year-over-year to $2.53 billion for its fiscal first quarter, ended March 31, 2021. Its income from operations grew 58.9% year-over-year to $1.11 billion, while its non-GAAP net income increased 44% year-over-year to $1.11 billion. The company's non-GAAP EPS increased 50% year-over-year to $9.89.
For the current quarter, ending June 30, 2021, analysts expect REGN's EPS to increase 151% year-over-year to $17.97. It surpassed the Street's EPS estimates in each of the trailing four quarters. REGN's annual revenue is expected to be $12.15 billion in , which represents a 43% year-over-year rise. The stock has surged 18.3% over the past three months and 8.8% over the past month to close yesterday's trading session at $544.45.
REGN's strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has an A grade for Growth and Value, and a B grade for Sentiment and Quality. Click here to access REGN's ratings for Momentum and Stability as well. REGN is ranked #1 of 487 stocks in the Biotech industry.
Energy Transfer LP (ET)
Dallas, Tex.-based ET provides energy-related services. It owns and operates roughly 9,400 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas and 12,340 miles of interstate natural gas pipelines. The company sells natural gas to electric utilities, independent power plants, local distribution companies and industrial end-users.
In February, ET and Enable Midstream Partners, LP (ENBL) entered a merger agreement whereby ET will acquire ENBL in an all-equity transaction. The merger could allow ENBL to pursue additional commercial opportunities and achieve cost savings, while enhancing its ability to serve customers.
The company's revenues increased 46.2% year-over-year to $16.99 billion in the first quarter, ended March 31, 2021. Its adjusted EBITDA for the quarter was $5.04 billion, which represents a 90.9% year-over-year rise. Its net income came in at $3.64 billion compared to a $964 million net loss in the prior-year period. The company's EPS came in at $1.21 compared to a $0.32 loss per share in the year-ago period.
Analysts expect ET's EPS and revenue to increase 891.7% and 71.1%, respectively, year-over-year to $1.9 and $66.63 billion in 2021. The stock has gained 69.7% over the past six months. It has rallied 43.3% over the past three months to close yesterday's trading session at $10.93.
ET's POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary ratings system.
The stock has an A grade for Value and a B grade for Growth. Within the Energy - Oil & Gas industry, ET is ranked #13 of 95 stocks.
To see ET's rating for Momentum, Stability, Sentiment and Quality, click here.
Teradata Corporation (TDC)
TDC, together with its subsidiaries, operates as a hybrid cloud analytics software provider. Its solutions and services comprise software, hardware, and related business consulting and support services. It primarily offers Teradata Vantage, which is an analytics platform. The Dayton, Ohio company serves various industries, including financial services, government, retail, and telecommunications.
On May 4, 2021, TDC announced a set of enhancements for Teradata Vantage on Alphabet Inc.'s (GOOGL) Google Cloud, making it easier for its consumers to use the services. This could lead to increasing demand for the company's services in the near-term.
TDC's revenue surged 13% year-over-year to $491 million for the first quarter, ended March 31, 2021. Its non-GAAP operating income grew 259% year-over-year to $115 million, while its non-GAAP net income increased 160% year-over-year to $78 million. TDC's non-GAAP EPS came in at $0.69, up 155.5% year-over-year.
TDC's EPS is expected to increase 95.8% year-over-year to $0.47 for the current quarter, ending June 30, 2021. It surpassed the Street's EPS estimates in each of the trailing four quarters. Its revenue is expected to increase 3.8% year-over-year to $1.91 billion in 2021. The stock has gained 124.7% over the past year to close yesterday's trading session at $50.28. It has climbed 31.8% over the past three months.
It's no surprise that TDC has an overall B rating, which equates to Buy in our POWR Ratings system. The stock has an A grade for Growth and Value, and a B grade for Quality. Click here to see TDC's ratings for Sentiment, Stability and Momentum also. TDC is ranked #1 of 3 stocks in the Technology - Storage industry.
Alkermes plc (ALKS)
Headquartered in Dublin, Ireland, ALKS is a biopharmaceutical company that researches, develops, and commercializes pharmaceutical products to address the unmet medical needs of patients in various therapeutic areas internationally. Its marketed products include ARISTADA, VIVITROL, RISPERDAL CONSTA and INVEGA SUSTENNA.
This month, ALKS announced that the U.S. Food and Drug Administration (FDA) had approved LYBALVI (olanzapine and samidorphan), for the treatment of adults with schizophrenia and bipolar I disorder. It offers the established antipsychotic efficacy of Olanzapine with less weight gain, which could lead to increased sales of this oral medication in the coming months.
ALKS' revenue surged 2.1% year-over-year to $251.43 million in the first quarter, ended March 31, 2021. Its operating loss decreased 56% year-over-year to $16.43 million. Its non-GAAP net income came in at $17.80 million, which represents a 930.3% year-over-year increase. The company's non-GAAP EPS was $0.11, up 1,000% year-over-year.
The company's EPS and revenue are expected to increase 100% and 12.6%, respectively, year-over-year to $0.12 and $278.70 million for the current quarter, ending June 30, 2021. It surpassed the consensus EPS estimates in three of the trailing four quarters. The stock has gained 26.2% over the past three months and 10.8% over the past month to close yesterday's trading session at $24.52.
ALKS' POWR Ratings reflect its solid prospects. The company has an overall B rating, , which translates to Buy in our proprietary ratings system. It has an A grade for Growth and Value, and a B grade for Quality.
REGN shares were trading at $547.39 per share on Friday morning, up $2.94 (+0.54%). Year-to-date, REGN has gained 13.31%, versus a 14.77% rise in the benchmark S&P 500 index during the same period.
Regeneron Pharmaceuticals, Inc. (REGN) is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.
About the Author: Nimesh Jaiswal
Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock's price is the key approach that he follows while advising investors in his articles.4 Hot Stocks to Add to Your Growth Portfolio appeared first on StockNews.com
Entrepreneur Editors' Picks
This Founder Quit His 'Prison'-Like Teaching Job Within 2 Months. Now, He and His Sister Are Helping Other Teachers Leave the Classroom and Achieve Financial Freedom.
If You Focus on Problems, You'll Only Find More Problems. Here's How to Focus on Solutions.
Facing More Than 15 Years in Prison, This Founder Transformed His Hustle Into a Powerful Personal Brand and Business. Now, He's Giving Back in a Big Way.
Apple Asks This Jarring Interview Question as a Secret Way to Evaluate a Candidate