Top Stock Picks for Week of August 22, 2022

Costco Wholesale Corporation COST sells high volumes of foods and general merchandise (including household products and appliances) at discounted prices through membership warehouses.Costco has been one of the most searched-for stocks on Zacks.com lately.

Being a consumer defensive stock, Costco has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register impressive sales and earnings numbers. We expect the company to register an 18.6% adjusted earnings per share improvement in fiscal 2022 on 14.7% revenue growth. This outlook accounts for the businesses’ ability to navigate the ongoing inflationary environment and supply chain bottlenecks on several fronts. A favorable product mix, steady store traffic, pricing power and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.

Albemarle Corporation ALB is a premier specialty chemicals company with leading positions in attractive end markets globally.  Albemarle is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ALB's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross." Albemarle’s adjusted earnings and sales for the second quarter of 2022 beat the respective Zacks Consensus Estimate. The company should gain from long-term growth in the battery-grade lithium market. It is expected to benefit from its actions to boost its global lithium derivative capacity. The company will also benefit from the synergies of the Rockwood acquisition. The buyout has enhanced diversity across end markets. The Qinzhou plant buyout will also drive volumes. Albemarle also remains focused on executing its cost-reduction program. Its cost saving actions are also expected to support margins in 2022. The company also remains committed to boost shareholder returns leveraging strong cash flows. It remains focused on maintaining its dividend payout. Albemarle has also outperformed the industry it belongs to over the past year.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.