3 Market Beating Growth Stocks

Growth returned a quarter earlier than expected this earnings season! Has your portfolio been coming along for this profitable ride? We have a screen that can help.

The Market-Beating Growth Stocks screen is a tool that’s made for these crazy times. In addition to looking for Zacks Rank #1s (Strong Buys) with an “A” for a Zacks Growth Style Score, this strategy also wants to see stocks with projected EPS growth of 20% or more. In other words, we want the biggest growth rates to go along with those rising estimate revisions.

Below are three stocks that recently passed the test.

Tempur Sealy (TPX Quick Quote TPX - Free Report)

When you really think about it, Tempur Sealy (TPX Quick Quote TPX - Free Report) may be the ultimate ‘stay home’ stock, whether there’s a pandemic or not. Other than vacations and work meetings, we do most of our sleeping at home. And that’s not going to change when things return to normal.

What does change, though, is the technology that TPX puts into their mattresses. As if controlling the temperature and support level wasn’t enough, now they’re working on fixing your snoring! Could a “good dreams” function be far off?  

And all of this comfort and technology is being delivered through an omnichannel strategy that includes company-owned stores, e-commerce, and third-party retailers. Yet another way this company was better prepared than most for the unprecedented challenges of the past year.

About two weeks ago, TPX reported its eighth straight positive surprise. Adjusted fourth-quarter earnings of 67 cents beat the Zacks Consensus Estimate by nearly 29%. The result nearly doubled the year-ago total of 34 cents.

Revenue of $1.06 billion topped the Zacks Consensus Estimate by more than 7% and improved over 21% from the previous year. Unsurprisingly, U.S. web sales doubled.

TPX is expecting a solid 2021 with sales growth of between 15% and 20%, which puts earnings somewhere between $2.30 and $2.50. Analyst expectations were not that high at the time, so we saw a healthy rise in revisions.

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