3 Top Ranked Growth Stocks That Are Compelling Buys

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2020 was the year of the growth stock, with technology shares leading the way. As vaccine approvals hit the news late fall, a rotation into more cyclical names took place. This made sense as an improving economy would undoubtedly benefit stocks that were hammered in 2020. But that rotation appears to be running out of steam, which means certain growth stocks are ripe for the picking.

So far in April, the SPDR S&P 500 Growth ETF (SPYG) has gained 7.7%, compared to a 4.2% gain for the SPDR S&P 500 Value ETF (SPYV). With many parts of the country already opened up, much of the pent-up demand is likely priced into the market. On the other hand, growth stocks appear to be gaining momentum, as evidenced by SPYG’s ETF Trade Grade of A in our POWR Ratings system.

While a diversified growth ETF may have played well last year, we need to be more selective this year as not all growth stocks will see their shares increase. That’s why I ran a screen for the top growth stocks in our POWR Rating system, with a Growth Grade of A and a Momentum Grade of A.

This gives us the best of both worlds: top-ranked growth stocks exhibiting price strength. Here are my top three: Corning Incorporated (GLW), Whirlpool Corporation (WHR), and Louisiana-Pacific Corporation (LPX).

Corning Incorporated (GLW)

GLW is a leader in materials science, specializing in the production of glass, ceramics, and optical fiber. Its advanced glass substrates are used in a large number of applications across multiple markets. The company supplies its products for flat-panel displays in televisions, gasoline particulate filters in automobiles, and optical fiber for broadband access, with a leading share in many of these markets.

The company has been benefiting from an increase in demand for its products. For instance, GLW’s fiber optic solutions are in demand due to the increasing use of mobile devices requiring efficient data transfer and networking systems. GLW sees strong demand for its premium cover materials in the specialty materials space due to the growing importance of semiconductor-related optical glasses.

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