Chipotle Mexican Grill, Tesla and ServiceNow are among the fastest-growing companies to watch in the ongoing stock market correction.
These three stocks to watch, along with Meritage Homes, MI Homes, Gold Fields and Coca-Cola Consolidated made IBD MarketSmith's 150 Fastest Growing Companies report, which highlights 150 stocks with 10% or greater earnings growth in the last two quarters.
Sorting the list by the five-year EPS growth rate, from highest to lowest, produces the culled set of potential outperformers.
Chipotle Still Among Fastest-Growing Companies
Chipotle stock's five-year EPS growth rate is impressive, at 36%.
Shares moved further above their key 50-day moving average this week, climbing the right side of a flat base with a 1,724.81 buy point. The stock gained 1% midday Tuesday, about 6% away from the latest buy point.
The burrito giant missed fourth-quarter earnings, revenue and same-store sales estimates on Feb. 7. Despite the miss, earnings and sales rose 49% and 11%, respectively, year over year.
Chipotle's earnings are expected to grow 28% in 2023 and 22% in 2024.
Tesla Stock Growth Still On Track
The EV giant boasts a 164% five-year EPS growth rate.
Tesla stock raced 6% higher midday Tuesday, as weekly insurance registrations in China grew for the fourth-straight week. Meanwhile, Moody's lifted Tesla's credit rating out of junk.
Registrations provide a de facto measure of Chinese new car sales.
Tesla booked 18,712 insurance registrations last week, up 10% from 17,032 in the prior week. The global EV giant had 12,478 Model Y and 6,623 Model 3 registrations last week. Model 3 numbers rose nearly 10%, after shooting up 83% two weeks ago.
Shares are finding support around their key 50-day line in recent sessions despite the ongoing stock market correction. Tesla stock could be forming a bottoming base with a 217.75 buy point, but it is still below its long-term 200-day line.
Fastest-Growing Companies Leader ServiceNow Posts Spectacular Growth
ServiceNow, cloud computing leader among fastest-growing companies, is trying to recapture its 50-day benchmark. It rose 2.1% midday Tuesday. Shares are forming a consolidation base with a 494.72 buy point, but are still about 10% away from that entry.
The company's software tracks and manages services provided by information-technology departments. Also, its self-service tech portal enables employees to access administrative and workflow tools.
In the most recent quarter, earnings and sales grew 56% and 20%, respectively, vs. the year-ago period.
Homebuilders Meritage and MI Homes
Leading homebuilders Meritage and MI Homes are among the fastest-growing growing companies, building new bases in today's stock market action.
Scottsdale, AZ-based Meritage is constructing a large cup with handle with a 117.32 buy point. Shares rose 1% midday Tuesday, bouncing further off 50-day support. They are about 4% away from the correct entry.
Meanwhile, Ohio-based MI Homes has a 64.78 buy point, as a result of forming a consolidation. MHO stock gained 1.2% Tuesday.
Both homebuilders boast relative strength lines at or near new highs.
Gold Stock Leader, Coca-Cola Consolidated Build Bases
Gold Fields is moving rapidly up the right side of a cup base with a 12.96 buy point. Shares slid 3% Tuesday, which could be the start of a handle. The South African company is one of the largest gold miners.
Lastly, Coca-Cola Consolidated is on pace to regain its 50-day line during Tuesday's 2.3% midday gain. The stock is building a cup with handle with a 579.95 buy point.
Coca-Cola Consolidated is the largest Coca-Cola bottler in the United States.
