Market Overview - The stock market experienced a rebound in the final week of November after a significant pullback, with buyers returning on the first trading day of December [1] - The outlook for the stock market remains optimistic through December and into 2026, driven by strong earnings growth in technology and artificial intelligence sectors [2] Investment Strategy - Investors are encouraged to continue purchasing stocks in December and into 2026, particularly those with a Zacks Rank 1 (Strong Buy) [2] - A Zacks screen can help identify top-performing stocks among over 200 companies with a Zacks Rank 1 [3] Screening Parameters - The screening process includes three key filters: 1. Zacks Rank equal to 1, which has historically provided an average annual return of approximately 24.4% since 1988 [5] 2. Positive percentage change in current quarter estimates over the last four weeks [6] 3. Top 5 stocks with the best average broker rating changes over the last four weeks [7] Company Spotlight: ePlus - ePlus (PLUS) is highlighted as a strong buy, having reported its first quarter of gross billings exceeding $1 billion, with revenue increasing by 23% to $609 million [10] - The company is projected to grow its revenue by 12% in FY26, reaching $2.32 billion, and its adjusted earnings are expected to grow by 3% in FY26 and 12% in FY27 [11] - ePlus has outperformed the tech sector over the past 20 years, with a stock price increase of 2,400% compared to the sector's 910% [12] - Despite its long-term success, ePlus trades at a 33% discount to the tech sector, with a forward P/E ratio of 18.9X [12]
Buying the Best Top-Ranked Stocks in December