Zacks Market Edge Highlights: Ulta, Netflix, Alphabet, Funko and EPAM

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For Immediate Release” data-reactid=”11″>For Immediate Release

Chicago, IL – September 26, 2019 – Zacks Market Edge is a podcast hosted weekly by cks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

(Please add the Soundcloud link from this URL for the PR. Thanks: https://www.zacks.com/stock/news/535569/growth-stocks-buy-sell-or-hold)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Growth Stocks: Buy, Sell or Hold?” data-reactid=”14″>Growth Stocks: Buy, Sell or Hold?

Welcome to Episode #195 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is going solo to talk about growth stocks. Most investors own them. FAANG defines this era. And it’s hard to believe that this huge rally in growth stocks could ever end.

But over the last several months some of the growth stocks have begun to tread water or even started declining.

Should you sell and cash in or should you hold on?

What about buying more?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="When Growth Hits a Speed Bump” data-reactid=”23″>When Growth Hits a Speed Bump

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Some growth stocks have hit speed bumps recently. A good example is Ulta ULTA. The beauty retailer was a big growth winner, with the stock gaining over 200% in the last 5 years until it warned last quarter on guidance.” data-reactid=”24″>Some growth stocks have hit speed bumps recently. A good example is Ulta ULTA. The beauty retailer was a big growth winner, with the stock gaining over 200% in the last 5 years until it warned last quarter on guidance.

That warning sent the shares spiraling down. Over the last month, they have fallen 28%.

Now the forward P/E is just 19.9 and it has a PEG of 1.2. It still expects double digit sales and earnings growth this year.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Netflix NFLX is another growth stock that has hit a speed bump. It has fallen 31% over the last year.” data-reactid=”27″>Netflix NFLX is another growth stock that has hit a speed bump. It has fallen 31% over the last year.

It’s forward P/E has also fallen, along with the stock, to just 81x.

Growth is still healthy. Earnings are expected to be up 21.3% this year and another 76.9% next year. Revenue is also expected to be up 28% in 2019 and another 24% in 2020.

Is this a buying opportunity?

There are other growth stocks that still have solid fundamentals that look interesting, especially if growth stocks tread water or pull back.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="3 Growth Stocks with Double Digit Earnings and Sales Growth” data-reactid=”32″>3 Growth Stocks with Double Digit Earnings and Sales Growth

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Alphabet GOOGL is one of the growth stocks that is up in 2019. Shares have jumped 16.9% year-to-date. Despite its size, it is still generating over 20% a year in sales growth. Analysts expect revenue to rise 20.3% in 2019.” data-reactid=”33″>1.       Alphabet GOOGL is one of the growth stocks that is up in 2019. Shares have jumped 16.9% year-to-date. Despite its size, it is still generating over 20% a year in sales growth. Analysts expect revenue to rise 20.3% in 2019.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funko FNKO makes pop culture consumer products including action figures, accessories and apparel and board games. While sales are expected to rise 22.9% and earnings 49% in 2019, it has an attractive valuation with a PEG ratio of just 0.8. Shares have sold off 8.3% over the last month.” data-reactid=”34″>2.       Funko FNKO makes pop culture consumer products including action figures, accessories and apparel and board games. While sales are expected to rise 22.9% and earnings 49% in 2019, it has an attractive valuation with a PEG ratio of just 0.8. Shares have sold off 8.3% over the last month.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EPAM Systems EPAM operates in software and digital platform engineering, design and consulting. Year-to-date, the shares are up 56% but over the last month they have faltered a bit, falling 4.3%. It’s expected to see 21% earnings growth and 23% sales growth this year and next.” data-reactid=”35″>3.       EPAM Systems EPAM operates in software and digital platform engineering, design and consulting. Year-to-date, the shares are up 56% but over the last month they have faltered a bit, falling 4.3%. It’s expected to see 21% earnings growth and 23% sales growth this year and next.

What else should you know about buying growth stocks in 2019?

Listen to this week’s podcast to find out.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="[In full disclosure, the author of this article owns shares of ULTA, FNKO and GOOGL in her personal portfolio.]” data-reactid=”38″>[In full disclosure, the author of this article owns shares of ULTA, FNKO and GOOGL in her personal portfolio.]

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Biggest Tech Breakthrough in a Generation” data-reactid=”39″>Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See 7 breakthrough stocks now&gt;&gt;” data-reactid=”42″>See 7 breakthrough stocks now>>

Follow us on Twitter:  https://twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.