Best Growth Stocks to Buy for June 29th

Zacks highlights three Zacks Rank #1 stocks with improving earnings estimates and attractive growth metrics: Celestica (+13.7% current-year EPS estimate over 60 days, PEG 0.73), Cboe Global Markets (+7.3%, PEG 1.08), and Centene (+12.7%, PEG 0.51). Each also carries a favorable Growth Score (B, A, and B, respectively), reinforcing a positive fundamental screen. The piece is largely a stock-picking and sentiment article rather than a company-specific catalyst, so likely price impact is limited.

Analysis

The common thread here is not simply “cheap growth,” but estimate revision momentum in three very different business models. That matters because positive revision breadth tends to persist for 1-3 quarters when it is driven by operating leverage or durable demand visibility, and it usually outperforms static valuation screens. The market is still underpricing the second-order effect: once consensus resets higher, these names can de-rate less on any macro wobble because the earnings base has already been pulled forward.

CLS looks like the cleanest earnings-leverage story because its upside is tied to AI/datacenter and industrial electronics content, where a small mix shift can drive disproportionate margin expansion. The risk is that supply-chain names often get extrapolated too far on a few strong prints; if inventory digestion reappears in end markets, the multiple can compress even while EPS still rises. CBOE is the least “obvious” beneficiary: its growth is more resilient, but the key debate is whether elevated trading/volatility activity is sticky or mean-reverting once rates and macro uncertainty calm down.

CNC is the most contrarian of the trio. A low PEG in managed care can be a value trap if the market is underestimating regulatory noise, medical-cost trend, or redetermination-related churn; conversely, if cost inflation stabilizes, the stock can rerate quickly because sentiment is still discounted. The cleaner read is that the current setup favors names with estimate momentum plus self-help, but the durability of that momentum differs sharply: CLS > CBOE > CNC on visibility, while CNC likely offers the most asymmetric rebound if the market is too focused on headline healthcare policy risk.

The main miss in consensus is that “growth” here is not uniformly cyclical or defensive; it is a mix of structural, volatility-linked, and actuarial earnings streams. That creates a useful pair/trade expression rather than a basket-only view: investors should prefer the business with the most controllable margin expansion and hedge the one most exposed to exogenous policy or volume normalization. If the market turns risk-off, CBOE should hold up best; if the market turns risk-on, CLS likely captures the most multiple expansion.

Key Decisions for Investors

• Long CLS into the next earnings window; use a 6-10 week horizon for a revision-driven move, with upside skew if datacenter/AI-related mix keeps supporting margin expansion. Stop if consensus revisions flatten for two consecutive weeks.
• Pair trade: long CLS / short CNC for 1-2 quarters to isolate execution-driven growth versus policy/medical-cost headline risk. This favors the name with cleaner operating leverage while hedging broader market beta.
• Add CBOE on weakness as a defensive earnings compounder for the next 3-6 months; the trade works best if volatility stays above normal and rate-cut timing remains uncertain. Trim if VIX compresses sustainably and options volumes normalize.
• For CNC, prefer defined-risk upside exposure rather than outright equity: buy 2-4 month call spreads to capture rerating potential while capping downside from policy or cost-trend surprises.
• If building a basket, overweight CLS and CBOE versus CNC by roughly 2:1:1 to reflect relative estimate durability and lower tail risk; rebalance after the next earnings cycle.