Remember that investors will complain that the stock is too expensive? You should, this was just a few months ago. However, the serious correction of the market in 2018, especially since the beginning of the “trade frenzy” more than a month ago, has put some good stocks in sight for some time.
Our “Best Performing Stocks” screen is a good way to find the best stocks that may be performing in the future. When the market moves together, they are ready to go higher. Here are the stocks listed in our model that will perform best in the future.
Best Performing Stocks To Buy For 2018： Mellanox Technologies, Inc. (MLNX)
Mellanox Technologies is a leading supplier of semiconductor interconnect products to world-class server, storage and infrastructure OEMs. The company’s VPI enables standard communication protocols to operate over any converged network with the same software solution.
Mellanox plans to release its latest quarterly report next week. Our consensus estimate requires that the company’s earnings per share increase by 183% and revenue by 29%. Management also exceeded earnings forecasts for three consecutive quarters. In the report, MLNZ’s transaction volume was 19.9 times the expected return, which is the multiple of the lowest return in a year.
Best Performing Stocks To Buy For 2018： Texas Instruments Incorporated (TXN)
Although you may recognize the brand because of its calculator, Texas Instruments is actually one of the world’s leading advanced semiconductor suppliers. The company’s IoT profile belongs to its Embedded Processor Division, which includes the Connect, Microcontroller and Processor categories.
Texas Instruments reported in the embedded processor division in the most recent quarter that it has increased by 20% year-on-year. The company also exceeded revenue forecasts and issued internal guidance. TXN Sports Zacks Rank #2 (Buy) now. At the same time, the stock’s expected P/E is 20.5 and the PEG is 2.1, so investors’ earnings and profit growth prospects are getting a decent price.
Best Performing Stocks To Buy For 2018： Western Digital (WDC)
A few years ago, Western Digital’s share price plummeted. Today, data storage solutions companies that help start the computer storage industry seem ready. WDC is currently ranked No. 1 (Strong Buy) in Zacks and expects its quarterly revenue to increase by more than 6% to reach US$4.93 billion.
The downturn in the Western Digital may force management to pay more attention to revenue. WDC’s current quarterly and full-year EPS growth forecasts are 36.4% and 52%, respectively. Western Digital’s current forecasted revenue is 7.6 times, which is a significant discount compared to the average expected price-earnings ratio of 11.7 times in the “computer-storage” industry. Investors may consider buying the WDC before the upcoming quarterly earnings report because it is currently well below the 52-week high. This means that better prices may be difficult to achieve within a period of time.
Best Performing Stocks To Buy For 2018： Moody’s (NYSE: MCO)
Berkshire Hathaway has close to 24.7 million Moody shares, but Buffett may want him to have more shares. In the first quarter, Moody’s shares rose more than 9%, becoming Berkshire’s best performing No. 3 stock during this period.
Like MasterCard, Moody’s announced strong fourth-quarter results. Revenue increased by 24% year-on-year to a record high of US$1.17 billion. The company reported a solid return after experiencing a huge net loss in the fourth quarter of 2016. Although Moody’s is known for issuing credit ratings, its Moody’s Analysis (MA) division, which provides financial analysis and risk management services, contributed the largest revenue growth.
Like MasterCard, Moody’s should get a boost from the 2018 US tax reform. The company’s tax rate is expected to fall from 43.6% in 2017 to 22% to 23% this year.
Moody’s thinks that 2018 should be another banner. The company expects revenue growth to be below the double-digit percentage. With the retreat of the tax reform, Moody’s should be able to increase its earnings per share by more than 40%. This growth should give Buffett’s face a smile.
Best Performing Stocks To Buy For 2018： Appfolio, Inc. (APPF)
AppFolio provides cloud-based software solutions for the property management and legal industries. The company’s AppFolio Property Manager is a leading property management solution, and its MyCase app is ideal for practitioners and small law firms. AppFolio found consistent profitability, and investors have received a 66% return in the past year.
The APPF currently ranks second (purchases) in the Zacks rankings and has grown to “A” in our style rating system. The stock will continue to maintain its upward trend and maintain a continuous bottom line expansion. The current market is generally expected to have a net sales growth rate of 26% this year, and it is expected that EP will increase by 37%.