Best Growth Stocks to Buy for May 21st

Zacks Investment Research highlights Great Lakes Dredge & Dock Corporation (GLDD), Encompass Health Corporation (EHC), and Unisys Corporation (UIS) as strong buy stocks with notable growth characteristics, citing a Zacks Rank #1 for each. GLDD's current year earnings estimates have increased 34.8% over the last 60 days, EHC's by 4.4%, and UIS's by 132%. The report also touts a new top semiconductor stock pick poised for growth, citing the expanding semiconductor market projected to reach $803 billion by 2028 and its potential to capitalize on AI, Machine Learning, and IoT demand.

Analysis

Zacks Investment Research has identified Great Lakes Dredge & Dock Corporation (GLDD), Encompass Health Corporation (EHC), and Unisys Corporation (UIS) as companies exhibiting strong growth characteristics, assigning each a Zacks Rank #1 (Strong Buy). This positive outlook is substantially supported by recent upward revisions in their consensus earnings estimates for the current year. Specifically, GLDD's earnings estimate has increased by 34.8% over the last 60 days, EHC's by 4.4%, and UIS's by a notable 132% during the same period. These significant estimate revisions suggest strengthening underlying fundamentals and growing analyst confidence in their earnings power. The overall sentiment surrounding these recommendations is positive, with specific per-ticker sentiment scores of 0.7 for GLDD, 0.6 for EHC, and 0.8 for UIS underscoring this optimism. Additionally, the report alludes to significant growth potential within the semiconductor sector, projecting market expansion from $452 billion in 2021 to $803 billion by 2028, and highlights an unnamed new chip stock poised to capitalize on demand from Artificial Intelligence, Machine Learning, and the Internet of Things.

Key Decisions for Investors

• Investors should consider the strong buy ratings and significant upward earnings estimate revisions for GLDD, EHC, and UIS as positive indicators, potentially warranting further due diligence for inclusion in growth-oriented portfolios, with UIS showing particularly strong recent estimate momentum.
• Monitor these companies for sustained earnings performance and further analyst commentary that could reaffirm or alter the current bullish outlook presented by the Zacks Rank #1.
• Given the projected expansion of the semiconductor market and its linkage to AI, Machine Learning, and IoT, investors may wish to research opportunities in this sector, while awaiting more specific information on the new chip stock mentioned if interested in that particular, yet unnamed, prospect.