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The Zacks Analyst Blog Highlights: ENVA, MITK, LYFT, ENPH and FRTA

Zacks Equity Research
·6 min read

For Immediate Release

Chicago, IL – March 31, 2020 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Enova International Inc. ENVA, Mitek Systems Inc. MITK, Lyft Inc. LYFT, Enphase Energy Inc. ENPH and Forterra Inc. FRTA.

Here are highlights from Monday’s Analyst Blog:

These Surging Growth Stocks Still Have More Upside Left

The coronavirus outbreak has been rattling global stock markets for the last six weeks, Wall Street being no exception. The stock-market valuation has plunged significantly, with extreme volatility witnessed in Wall Street's history. However, the previous week (ended Mar 27) was an exceptional one, as three major stock indices witnessed robust rallies.

Stock Markets See Solid Rallies Last Week

Wall Street witnessed one of its historically-strong weekly gains last week. The three major stock indices — the Dow, the S&P 500 and the Nasdaq Composite — jumped 12.8%, 10.3% and 9.1%, respectively. The Dow recorded its best weekly performance since 1938. The S&P 500 posted the strongest weekly gain since 2008. Meanwhile, the Nasdaq Composite registered the best weekly rally since March 2009.

Market participants' sentiments were uplifted as President Trump injected a gigantic $2-trillion fiscal stimulus in the form of the coronavirus relief package. Moreover, the Fed has already decided to provide monetary stimulus worth $4 - $5 trillion. In addition, the central bank has reduced the short-term lending rate to 0-0.25%.

Besides the United States, internationally another $5 trillion of stimulus is anticipated to be generated in the next few weeks. Several important members of the Eurozone, the U.K., Japan and China have entered this league. Furthermore, prominent emerging economies like Singapore, India and Malaysia also injecting large sums of money to restore the shrinking global economy.

Has the Stock Market Hit Rock Bottom?

Economists and financial experts are divided on the question whether or not Wall Street has already hit rock bottom. Although it’s too early to say that the market has bottomed out, it is a fact that stocks have fallen significantly in a short period of time.

At present, the Dow, the S&P 500 and the Nasdaq Composite are still down 26.8%, 25.1% and 23.7%, respectively, from their all-time highs recorded last month. Further, year to date, these indices are down 24.2%, 21.3% and 16.8%, respectively.

Consequently, plenty of goods stocks are trading at ultra-cheap prices despite the fact that the market might be choppy over the next few weeks. Meanwhile, the unprecedented fiscal stimulus provided by the U.S. government and monetary stimulus by the Fed will undoubtedly boost the morale of market participants. This, in turn, will aid investors reap rewards over the long term.

Our Top Picks

At this stage, it will be prudent for long-term investors to invest in stocks with a favorable Zacks Rank and strong growth potential. We have narrowed down our search to five stocks with a Growth Score of A that have skyrocketed in the past week. Each of our picks  carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Enova International a provider of online financial services. It offers loans to customers in the United States and in the U.K., Australia and Canada. The company has an expected earnings growth rate of 13.7% for the current year. The stock price has rallied 45.6% in the past week and is still 54.5% below its 52-week high.

Mitek Systems Inc.develops, markets and sells mobile image capture and digital identity verification solutions in the United States, Europe, Latin America, and internationally. The company has a projected earnings growth rate of 21.4% for the ongoing fiscal year (ending August 2020). The stock price has jumped 34.5% in the past week and is still 33.5% below its 52-week high.

Lyft Inc.operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It offers a multimodal platform that provides riders, personalized and on-demand access to various transportation options. The company has an estimated earnings growth rate of 18.5% for 2020. The stock price has climbed 29.7% in the past week and is still 68.8% below its 52-week high.

Enphase Energy a global energy technology company that delivers energy management technology for the solar industry. It designs, develops, manufactures and sells home-energy solutions for the solar photovoltaic industry in the United States and globally. The company has an expected earnings growth rate of 33.7% for this year. The stock price has appreciated 24.5% in the past week and is still 45.3% below its 52-week high.

Forterra Inc.manufactures and sells pipe and precast products the United States, Canada and Mexico. It operates through Drainage Pipe & Products and Water Pipe & Products segments. The company has an anticipated outstanding earnings growth rate of 866.7% for the current year. The stock price has advanced 17.6% in the past week and is still 67.5% below its 52-week high.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release.

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