2 Supercharged Growth Stocks To Buy Right Now

Investors are shrugging off concerns surrounding the rapid spread of the COVID-19 Delta variant. The markets opened on a bullish note this week, on the first trading day in August. In fact, the S&P 500 index entered its seventh straight month of gains yesterday, while the Dow Jones Industrial Average (DJIA)  traded near its record highs.

The U.S. Senate finalized the text of a $1 trillion bipartisan infrastructure bill over the weekend, driving investor optimism despite several headwinds. Consequently, growth stocks are expected to see big gains.

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Companhia Siderúrgica Nacional S.A. (SID - Get Rating) and Matson, Inc. (MATX - Get Rating) are expected to benefit from the current backdrop given their solid growth attributes. Thus, we think these two stocks are ideal bets now.

Companhia Siderúrgica Nacional S.A. (SID - Get Rating)

SID operates as an integrated steel producer in Brazil and Latin America. The company operates in five segments: Steel; Mining; Logistics; Energy; and Cement.

On June 11, SID announced the completion of its Luxembourg finance subsidiary’s, CSN Resources S.A., cash tender offer for all its outstanding 7.625% senior unsecured guaranteed notes due 2023.

The company has an impressive growth history. SID’s revenues have improved at a 30.6% CAGR  over the past three years, while its EBIT increased at an 83.1%  CAGR over this period. In addition, its levered free cash flow improved at an 113.8% CAGR  over the past three years.

SID’s net sales increased 147.4% year-over-year to R$15.39 billion ($2.98 billion) in its fiscal second quarter, ended June 30. Its gross profit stood at R$8.28 billion ($1.60 billion), up 349.4% from the same period last year. And its net income improved by 1,136.3% year-over-year to R$5.51 billion ($1.07 billion).

Analysts expect SID’s revenues to increase 80.5% year-over-year to $3.00 billion in the current quarter, ending September 2021. A $0.75  consensus EPS estimate for the current ongoing quarter indicates a 1,775% rise from the same period last year. SID has an impressive earnings surprise history also; it beat the consensus EPS estimates in three out of the trailing four quarters.

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