Global headwinds such as growth issues in China, crashing commodity prices and volatile oil prices had kept international markets at its toes for a while. With China and oil playing foul, global growth prospects remained clouded, dampening investors’ confidence. This was evident from the massive sell-off in the early part of this year.

Moreover, the Central Banks had little room to work with some countries even deploying a negative interest rate policy and economic data displaying some eerily similar patterns that led to recessions in the past. All these pointed to a global recession in 2016.

Why Things Look Greener Now

Though persistent slowdown in the world’s second largest economy and a relentless slide in crude oil intensify fears of a global slowdown and deflation, the U.S. stock market has shown some recovery in the past one month amid heightened uncertainty. The S&P 500 index gained over 7% in the past one month.

Moreover, the U.S. economy has regained momentum after a sluggish fourth quarter, given the slew of encouraging data pertaining to retail sales, consumer spending, producer prices, factory production and inflation. The recent strong jobs data further eased fears of a recession in the U.S. and infused signs of confidence into the economy.

While tepid wage growth remains a matter of concern, a solid hiring number is strong enough to support the Federal Reserve’s gradual interest rates hike this year.

U.S. Bull Run Celebrates 7th Birthday

To top that, the U.S. stock market finally completed its seventh year of “Bull Run” on Mar 9, despite persistent global hurdles. Though the S&P 500 index declined over 4% in its 7th year, it has risen 194% from the bear-market bottom of 676.53 on Mar 9, 2009. This is the longest Bull Run since the 1940s.

While consumer confidence is on the rise with increased spending power, a thriving auto industry, and a recovery in the housing market, the optimism is likely to continue as the bull market enters its eighth year, but with high levels of volatility.

"The more fun part of the bull market is probably over," said Russ Koesterich, global chief investment strategist at BlackRock. "It doesn't mean stocks can't advance. But the gains are going to be more muted – and accompanied by more volatility."

Stocks to Bet on

We have shortlisted stocks that have a Zacks Rank #1 (Strong Buy) or #2 (Buy) along with Zacks Momentum Style Score of ‘A’ and projected EPS growth rate (F1/F0) of 10% or higher. Rising earnings estimates and a strong earnings momentum should help them outperform the market in the eighth year too.

The Walt Disney Company (DIS - Analyst Report): The California-based company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.

Zacks Rank #2
Momentum Score: ‘A’
7-Year Returns: 582%
Projected EPS Growth (F1/F0): 12.15%

Delta Air Lines, Inc. (DAL - Analyst Report): Headquartered in Georgia, the company provides scheduled air transportation for passengers and cargo in the U.S. and internationally. Delta Air Lines offers customers service to more destinations than any global airline with Delta and Delta Connection carrier service.

Zacks Rank #2
Momentum Score: ‘A’
7-Year Returns: 1046%
Projected EPS Growth (F1/F0): 47.85%

BJ's Restaurants, Inc. (BJRI - Analyst Report): Based in California, the company owns and operates casual dining restaurants under the BJ's Restaurant and Brewery, BJ's Restaurant and Brewhouse or BJ's Pizza & Grill brand names.

Zacks Rank #2
Momentum Score: ‘A’
7-Year Returns: 328%
Projected EPS Growth (F1/F0): 18.44%

AAON Inc. (AAON - Snapshot Report): The Oklahoma-based company is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units and coils. Its products serve the new construction and replacement markets.

Zacks Rank #1
Momentum Score: ‘A’
7-Year Returns: 509%
Projected EPS Growth (F1/F0): 20.24%

Domino's Pizza, Inc. (DPZ - Analyst Report): Headquartered in Michigan, Domino's is the recognized world leader in pizza delivery, operating a network of company-owned and franchise-owned stores in the U.S. and international markets.

Zacks Rank #2
Momentum Score: ‘A’
7-Year Returns: 2518%
Projected EPS Growth (F1/F0): 21.16%

Extra Space Storage Inc. (EXR - Snapshot Report): Based in Utah, the company is a fully integrated, self-administered and self-managed real estate investment trust that acquires, develops and operates self-storage facilities.

Zacks Rank #2
Momentum Score: ‘A’
7-Year Returns: 2003%
Projected EPS Growth (F1/F0): 18.85%

Smith & Wesson Holding Corporation (SWHC - Snapshot Report): The Massachusetts-based company is one of the world's leading producers of quality handguns, law enforcement products and firearm safety and security products.

Zacks Rank #1
Momentum Score: ‘A’
7-Year Returns: 548%
Projected EPS Growth (F1/F0): 66.67%