Growth investing was all the rage in 2017, as the likes of tech giants from Amazon (AMZN – Free Report) to Nvidia (NVDA – Free Report) helped send markets to new heights. Now, as we head into 2018, investors are likely to remain focused on companies that are poised to grow substantially.
But many investors already hold the likes of Facebook (FB – Free Report) and Netflix (NFLX – Free Report) and are unlikely to dump them anytime soon. This means many investors need to find new companies projected to expand at market-beating speeds.
In order to find stocks with outsized growth potential, investors should always look for companies with strong estimates and exciting potential. But on top of that, investors might also try to reject the herd by looking at stocks outside of the tech world.
With that said, let’s take a look at three consumer facing stocks with high Zacks Ranks that are also great 2018 growth stocks:
1. Skechers U.S.A., Inc. (SKX – Free Report)
This low-priced shoe retailer is currently a Zacks Rank #1 (Strong Buy). Skechers has also seen its stock price soar nearly 50% in the last 12-weeks alone. In fact, Skechers stock just hit a new 52-week high of $38.31 per share. But the good news for growth investors is that Skechers is poised for solid 2018 expansion.
Our current Zacks Consensus Estimates call for Skechers’ fiscal 2018 EPS to hit $2.16 per share, which would mark 27.06% year-over-year growth from its estimated 2017 total. Furthermore, the shoe company’s 2018 sales are expected to jump 11.56% to hit $4.52 billion. Investors should also be happy to know that Skechers has received four upward earnings estimate revisions for fiscal 2018, all in the last 60 days.
Looking even farther ahead, Skechers’ expected EPS growth over the next three to five years currently rests at an annualized rate of 14%. On top of that, Skechers’ current cash flow growth rate tops the “Shoes and Retail Apparel” industry average and should certainlyhelp spur these growth projections.
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