Best Growth Stocks To Buy Now In Top Sectors For 2018

If you are looking for the best growth stocks to buy now, this list of stodgy stalwarts from top sectors is worth checking. For one, all of them have strong near-term growth prospects. Second, some of them provide meaty dividends as well.

Stocks are soaring in 2018.

Stocks of commodity-related and economically-sensitive companies are leading the market.

Energy and technology stocks are up 6.2% and 4.7%, respectively.

Analysts are busy upping earnings expectations after President Trump signed the Tax Cuts and Jobs Act into law in late December.

This bill reduces the corporate tax rate from 35% to 21%.

The size and direction of the impact, however, vary by company.

Analysts expect companies in the financial sector to benefit the most from the tax cut.

According to FactSet, they have raised 2018 EPS estimates by 8.3% for companies in the financial sector, higher than any other sector. 

Benefit from tax cuts is only one part of a sector's story. Other factors also play a part in sector-level EPS growth estimates.

So, which sectors do analysts expect to show the highest growth in 2018?

High Growth Sectors for 2018

Here is what FactSet data show:

Earnings are expected to grow in all 11 sectors.

Earnings growth is expected to be strongest in the energy and financial sectors.

Earnings growth is expected to be less robust in interest-rate sensitive sectors like utilities and telecom services.

The best sector from an earnings growth perspective in 2018 is energy. Sector heavy-weights Exxon Mobil, Chevron, and Schlumberger along with a host of smaller companies are expected to show strong growth in earnings.

So, where can you find companies with above-average earnings growth prospects?

Best Growth Stocks to Buy Now

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