3 Under-the-Radar Growth Stocks to Buy This Month

The S&P 500 index and Nasdaq composite are trading near their all-time highs. Better-than-expected U.S. retail sales data boosted the benchmarks, and the U.S. dollar reached a four-and-a-half-year high against the yen today. Furthermore, a decline in weekly jobless claims for six consecutive weeks, an increase in discretionary spending, and President Biden’s commitment to monitor inflation should drive the stock market higher. And according to a FactSet report issued on November 5, 2021, analysts project corporate earnings growth of more than 20% for Q4 2021. Therefore, we think it could be wise to bet on fundamentally sound growth stocks now.

Investors’ interest in growth stocks is evident in the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 71.2% gains over the past year.

Under-the-radar stocks Atkore Inc. (ATKR – Get Rating), Methanex Corporation (MEOH – Get Rating), and Conn’s, Inc. (CONN – Get Rating), which possess solid growth attributes, could be ideal bets now. Analysts expect their earnings to increase in the current quarter and over the next few years. Also, these stocks are rated ‘Strong Buy’ in our proprietary rating system.

Atkore Inc. (ATKR – Get Rating)

ATKR is a manufacturer and distributor of raceway and mechanical products and solutions (MP&S) that is headquartered in Harvey, Ill. The company offers electrical and mechanical products, including Cable Tray Systems, Conduit, Fittings, Mechanical Tubes, Traffic products, and other construction services. ATKR also provides energy, healthcare, data center, and prefabrication solutions.

ATKR’s net sales increased 121.8% year-over-year to $853.66 million for its fiscal third quarter, ended June 25, 2021. The company’s gross profit grew 254.1% from its year-ago value to $339.27 million. Its operating income rose 497.5% from the prior-year quarter to $248.73 million, and the company’s net income increased 628% year-over-year to $175.3 million.

ATKR’s revenue is expected to increase 60.7% year-over-year to $2.84 billion in its fiscal year 2021. The company has an impressive earnings surprise history; it beat the consensus EPS in each of the trailing four quarters. Also, its EPS is expected to grow 225.4% in the current quarter. ATKR’s EPS is expected to grow at  25.9% per annum over the next five years. Furthermore, its revenue has increased at a 12.3% CAGR and its total assets have increased at a 15.2% CAGR over the past three years. The stock has gained 263.1% in price over the past year.

ATKR’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

Also, the stock has an A grade for Growth and Quality. We have also graded ATKR for Stability, Sentiment, Momentum, and Value. Click here to access all ATKR’s ratings. ATKR is ranked #2 of 35 stocks in the Industrial – Metals industry.

Note that ATKR is one of the few stocks handpicked by our Chief Growth Strategist, Jaimini Desai, currently in the POWR Growth portfolio. Learn more here.

Methanex Corporation (MEOH – Get Rating)

Headquartered in Vancouver, Canada, MEOH is a global producer and supplier of methanol to international markets, including North America, Asia Pacific, Europe, and South America. The company’s global operations are supported by a global supply chain of terminals, storage facilities, and a dedicated fleet of methanol ocean tankers. MEOH also owns and manages a fleet of approximately 30 ocean-going vessels.

Last month, MEOH and Mitsui O.S.K. Lines, Ltd. (MOL) finalized a strategic shipping partnership involving Methanex’s Waterfront Shipping (WFS) subsidiary. With this agreement…

 

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