2 Growth Stocks That Are Screaming Buys in May

Data equipment company Vertiv (NYSE: VRT) and oil and natural gas equipment and services company Baker Hughes (NASDAQ: BKR) reported excellent first-quarter earnings in the latter half of April. In doing so, they dispelled investor fears and signaled that they were on course to deliver solid earnings growth and excellent returns for the rest of the year and beyond. Here's why these two companies' shares are currently great values. 

The data equipment provider has heavyweight backing in the form of activist value investor Starboard Value, and its executive chairman is longtime Honeywell CEO Dave Cote. However, though it operates in desirable end markets, its operational performance hasn't always lived up to its potential. For example, colocation data center companies like Equinix and Digital Realty Trust are guiding for double-digit percentage growth this year, and the cloud/hyper-scale market remains in growth mode with companies like Amazon, , and Alphabet looking to increase their market shares.

While end-market demand is fine, Vertiv was behind the inflation curve in 2021 and 2022, and spent much of 2022 raising prices to offset its higher costs. After shocking the market in early 2022 by revealing an earnings miss for full-year 2021, it managed to push through pricing increases as expected in 2022, but it still missed its guidance ranges for working capital and free cash flow. 

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Source Fool.com