With Q1 nearing completion, here’s a look at the fastest-growing stocks to watch in 2021. Led by The Container Store (TCS), Pinterest (PINS), Futu (FUTU), Daqo New Energy (DQ) and Ternium (TX) are among 11 stocks expecting 84% to 263% earnings growth this year.
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Given the brighter outlook for the travel and leisure sectors after the shutdowns in 2020, Winnebago Industries (WGO) and Thor Industries (THO) also make the cut. WGO stock and THO stock have both been motoring to new highs.
While 2021 estimates for FUTU stock (104%) and PINS stock (100%) place them among today’s fastest-growing stocks, potential signs of trouble have clouded the horizon.
Beginning in late February, PINS stock sold off sharply, slicing below its 50-day moving average in heavy volume. Pinterest is now trying to retake that benchmark line, but volume has been below average on the attempted rebound.
PINS stock remains on the IBD Big Cap 20, along with farming equipment giant Deere (DE), which is also on the IBD 50.
Despite posting 880% EPS growth and a 283% sales increase for Q4 on March 16, FUTU stock retreated after reporting. The Chinese brokerage and wealth management platform remains above the 10-week line but may come down to test support.
Shining as one of the best solar energy stocks to watch, Daqo New Energy broke out on Dec. 15. But like PINS stock and FUTU stock, Daqo has faded off its old highs.
Such action in the fastest-growing stocks like PINS, FUTU and Daqo means it’s a time to be cautious. As these highfliers correct and possibly set up new chart patterns, investors in growth stocks may want to reduce their holdings and limit exposure.
Fastest-Growing Stocks To Buy And Watch In 2021
One of the key traits of winning stocks is strong earnings growth. This stock screen highlights companies expecting at least 75% EPS growth in 2021.
Equally important, to show both fundamental and technical strength, each stock must have a 95 or higher Composite Rating to make this list. They must also have an EPS Rating and RS Rating north of 80. Finally, to avoid thinly traded penny stocks, they must also have a share price above $12 and trade at least 200,000 shares a day on average.
Find The Best Stocks To Buy And Watch With IBD Stock Screener
| Company | Symbol | EPS Est Cur Yr % | Comp Rating | EPS Rating | RS Rating | SMR Rating |
|---|---|---|---|---|---|---|
| The Container Store Grp | TCS | 263 | 96 | 93 | 98 | C |
| Kulicke & Soffa Ind Inc | KLIC | 202 | 99 | 82 | 87 | A |
| Daqo New Energy Corp Ads | DQ | 192 | 95 | 87 | 98 | A |
| Ternium Sa Adr | TX | 145 | 99 | 97 | 88 | C |
| Winnebago Industries Inc | WGO | 123 | 98 | 94 | 82 | B |
| Textainer Group Holdings | TGH | 122 | 99 | 95 | 90 | C |
| Denbury Inc | DEN | 115 | 97 | 97 | 88 | D |
| Futu Holdings | FUTU | 104 | 99 | 84 | 99 | A |
| Pinterest Inc | PINS | 100 | 99 | 84 | 94 | A |
| Thor Industries Inc | THO | 98 | 98 | 81 | 87 | B |
| Deere & Co | DE | 84 | 97 | 93 | 88 | B |
3 Key Rules For How To Buy Stocks
Keep in mind that earnings growth is just one factor to track when looking for the best stocks to buy and watch. In addition, make sure to follow these three key rules for how to buy stocks.
As recent action in PINS stock, FUTU stock and Daqo shows, it’s also critical to have and follow sound sell rules when handling the fastest-growing stocks. You never want to let a big gain disappear or, even worse, turn into a loss.
Following a simple three-step routine helps you stay profitable and protected, and ready to take advantage of today’s fastest-growing stocks when opportunities arise.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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