A-rated growth stocks are a great way to help ensure a profitable tomorrow, and everyone wants a profitable tomorrow. That’s one of the reasons why we invest – to build a nest egg to pay for our retirements, and to pass along wealth to our loved ones.
Finding and buying A-rated growth stocks is one of the best ways to get there. Growth stocks are expected to provide better-than-average returns over the next several quarters or years. That’s to contrast with value stocks, which are stocks that trade at a price lower but more stable price.
These A-rated growth stocks are intriguing because of their dynamic nature in outperforming the market and accelerating returns. My Portfolio Grader identifies the best growth stocks with solid momentum to keep those returns coming in – and help you create those profitable tomorrows.
Here are seven A-rated growth stocks to buy now that fit the bill.
ENPH | Enphase Energy | $288.59 |
RCMT | RCM Technologies | $17.75 |
CVE | Cenovus Energy | $19.30 |
COP | ConocoPhillips | $112.12 |
ON | ON Semiconductor | $71.58 |
SQM | Sociedad Quimica Y Minera De Chile | $104.83 |
PBR | Petroleo Brasilieiro | $104.83 |
Enphase Energy (ENPH)
Enphase Energy (NASDAQ:ENPH) has a forward price-earnings ratio of 80.6 which makes it seem extremely overvalued. The company’s products, including solar energy inverters and battery storage products, are highly sought after in Europe.
It will likely stay that way as the Russia-Ukraine war stretches past the six-month mark. Meanwhile, Washington recently passed a climate bill that could also help it in the U.S. market.
Enphase keeps churning out winning earnings reports that handily beat analysts’ expectations. Earnings for Q2 included revenue of $530.2 million and earnings per share of $1.07, while the Street expected $505.4 million and EPS of 85 cents.
ENPH stock is up nearly 57% so far this year and gets an “A” rating in the Portfolio Grader.
RCM Technologies (RCMT)
RCM Technologies (NASDAQ:RCMT) has a market capitalization of less than $200 million, but don’t let anyone tell you that good things can’t come in small packages. RCMT stock is the real deal.
RCM is a New Jersey-based IT company that works in commercial, government and healthcare sectors. There’s lots of money to be had in building out IT solutions to help companies work more efficiently or to build new processes.
With the company’s Specialty Health Care Services segment, RCM helps facilities with their staffing needs, including therapies, nurses and caregivers.
It’s been a profitable business. RCMT stock is up nearly 151% so far this year At one point this spring it was up nearly 300%. For the second quarter, the company reported revenue of $74.3 million and earnings of 57 cents per share. Analysts were expecting revenue of $79.13 million and EPS of 53 cents.
While the report was mixed, the numbers are still off the chart and show a company with plenty of positive momentum. RCMT stock has an “A” rating in the Portfolio Grader.
Cenovus Energy (CVE)
Cenovus Energy (NYSE:CVE) is among those oil and gas stocks that are getting outsized returns because of Russia’s war against Ukraine. The Calgary company is the third-largest oil and natural gas producer in Canada, and the second-largest refiner and upgrader.
It’s a company that is growing fast. It was founded in 2009 from the split of Encana Corporation split into two companies – Cenovus, the oil company, and a natural gas company now known as Ovintiv (NYSE:OVV).
Interestingly, Cenovus got back into the natural gas business last year when it acquired Husky Energy, an oil and natural gas production company.
The strategy seems to be working, at least for now. CVE stock is up nearly 53% on the year. Earnings for the second quarter included Revenue of $20.75 billion and EPS of $1.26 – both better than analysts’ expectations of $17.46 billion in revenue and EPS of $1.13.
CVE stock has an “A” rating in the Portfolio Grader.
ConocoPhillips (COP)
ConocoPhillips (NYSE:COP) pretty much splits its production equally between oil and natural gas.
It has upstream, midstream, and downstream operations. That means it has better control over its operating margins.
COP stock continued its winning ways in the company’s Q2 earnings report. Revenue of $21.99 billion topped analysts’ predictions of $19.68 billion. EPS of $3.91 beat the lofty expectations of $3.85.
COP stock is up 52% so far this year, helping it get an “A” rating in the Portfolio Grader.
ON Semiconductor (ON)
After a bad start of the year for semiconductor stocks, the market is starting to turn around for the sector. That’s good news for companies like ON Semiconductor (NASDAQ:ON), which makes semiconductors for the auto industry and other industrial end users.
Earnings for the company’s second-quarter easily topped analysts’ expectations.
ON Semiconductor posted revenue of $2.08 billion and earnings of $1.34 per share, beating the Street’s prediction of $2.01 billion in revenue and EPS of $1.26. Revenue was up 25% on a year-over-year basis, and earnings more than doubled from a year ago.
ON stock is up 20% in the last six months, but the company really got hot in early July when supply issues began to ease for semiconductors.
Not surprisingly, it has an “A” rating in the Portfolio Grader.
Sociedad Quimica Y Minera De Chile (SQM)
Chilean fertilizer and mining company Sociedad Quimica Y Minera De Chile (NYSE:SQM) is having a big 2022 as both of its segments have been big winners so far this year.
Fertilizer prices are up as the Russia-Ukraine war sliced into the supply of key fertilizer ingredients like ammonia, nitrogen and urea.
On top of that, the company’s lithium is in high demand due to its use in the production of electric vehicles. Is it any wonder that SQM stock is up nearly 110% so far in 2022?
Earnings for the second quarter included revenue of $2.6 billion, beating analysts’ expectations for $2.34 billion. EPS was also a winner, coming in at $5.80 versus the Street’s prediction of $3.15.
SQM stock has an “A” rating in the Portfolio Grader.
Petroleo Brasilieiro (PBR)
Petroleo Brasilieiro (NYSE:PBR), or Petrobras, is the biggest oil company in Brazil with a huge global presence. Like ConocoPhillips, it has upstream, midstream and downstream operations. It also has significant offshore reserves.
Granted, the Brazilian economy is volatile, and the Brazilian government is Petrobras’ biggest shareholder. So the stock should be watched carefully. But PBR stock has been a consistent winner so far this year, up 32%, and gives investors some extra global exposure.
And even more exciting for investors – Petrobras is one of the best-paying dividend stocks among oil producers, paying out $17 billion in dividends over the second quarter. That’s roughly 60% more than the company took in during the quarter in profit (10.5 million). It’s much more than Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) or Shell (NYSE:SHEL) paid.
That’s a great reason to give PBR stock an “A” rating in the Portfolio Grader.
On the date of publication, Louis Navellier has a position in ENPH, RCMT, CVE, COP, ON, SQM and PBR. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.