Pomegra
ALH, NESR, and KNX earn Zacks Rank #1 status as best growth stocks for July 2026 on strong EPS revisions, sector momentum, and growth-adjusted valuations.
- ALH beat Q1 2026 EPS estimates by 19%, EPS consensus rose 8.4% over 60 days, and PEG ratio of 1.14 compares favorably to the sector's 1.33.
- NESR posted 118% year-over-year EPS growth and 34% revenue growth in Q1 2026, driven by accelerating Middle East oilfield services demand.
- KNX trades at a PEG of 0.92 against a trucking industry average of 1.64, with Q2 2026 revenue growth projected at 10.4% year over year.
Lead
Zacks Investment Research on July 24, 2026 assigned its highest Zacks Rank #1 (Strong Buy) designation to three companies spanning commercial laundry systems, oilfield services, and over-the-road trucking: Alliance Laundry Holdings (NYSE: ALH), National Energy Services Reunited Corp (Nasdaq: NESR), and Knight-Swift Transportation Holdings (NYSE: KNX). The selections reflect upward earnings estimate revisions, growth-adjusted valuations, and accelerating sector fundamentals heading into the second half of 2026 — all in a session where the S&P 500 closed flat at 7,411.98 and the Nasdaq slipped 0.64% to 24,975.82 amid broad pressure on large-cap technology names.
What Happened
The Zacks ranking system weights earnings estimate revisions as its primary factor, a methodology that has historically correlated with near-term price outperformance. All three Zacks Rank #1 growth selections for July 24 share a common thread: the analyst community has meaningfully raised forward EPS expectations over the prior two months, signaling improving business visibility.
The broader market offered a cautious backdrop. All three major indexes posted weekly losses on July 24 — the Nasdaq fell roughly 2% on the week — following disappointing results from several large-cap technology names. Brent crude briefly topped $100 per barrel earlier in the week on supply-disruption concerns tied to Red Sea tanker incidents before retreating below $96 per barrel, adding a commodity dimension relevant to one of the three picks.
Alliance Laundry Holdings (ALH): Commercial Systems Growth
ALH stock represents a $5.14 billion market-cap manufacturer of commercial laundry equipment that carries a Zacks Growth Score of A — the highest available tier — making it among the best growth stocks for July 2026 in the firm's screening framework.The company reported Q1 2026 earnings per share of $0.31, beating the $0.26 consensus estimate by 19.23%. Current-year EPS consensus has risen 8.4% over the past 60 days, reflecting analyst confidence in the company's ability to sustain margin expansion and revenue growth through the remainder of the fiscal year.
Alliance Laundry Holdings trades near $25.86, within a 52-week range of $18.64 to $27.48. Its PEG ratio of 1.14 compares favorably to the commercial equipment industry average of 1.33, indicating that investors currently pay less per unit of projected earnings growth than the typical peer. The analyst consensus 12-month price target stands near $31.38. The company's next earnings event is scheduled for August 19, 2026.National Energy Services Reunited (NESR): Oilfield Services Surge
NESR stock operates at the intersection of oilfield services and Middle East regional energy investment — a combination that has generated some of the most striking earnings acceleration among mid-cap industrials in 2026.In Q1 2026, National Energy Services Reunited reported revenue of $404.6 million, a 34% increase from the year-earlier period. Net income reached $23.8 million, up 129% year over year. EPS of $0.24 more than doubled the $0.11 reported in Q1 2025 — a 118% gain. Adjusted EBITDA came in at $76.7 million.
NESR stock last traded at $27.86, within a session range of $27.81 to $29.06. Seven analysts covering the name hold an average Buy consensus, with a 12-month price target of $32.43 — implying roughly 21% upside from current levels. Current-year EPS consensus has risen 5.5% over the past 60 days. The company's next scheduled earnings date is August 5, 2026.The oilfield services sector benefits from multi-year drilling commitments by national oil companies across the Gulf Cooperation Council (GCC) region, where capital spending programs have remained intact despite oil price volatility. The week's Brent crude swing — from above $100 to below $96 per barrel — illustrates the pricing sensitivity that frames NESR's revenue environment, though the company's contract-driven exposure to GCC national oil companies provides a degree of insulation from spot-price fluctuations.
Knight-Swift Transportation (KNX): Freight Recovery Trade
Knight-Swift Transportation Holdings (NYSE: KNX), the largest full-truckload carrier in North America, earns a Zacks Growth Score of B and the firm's top rank on evidence of a freight market recovery gaining traction through 2026. KNX trades near $75.72 within a 52-week range of $38.63 to $82.86 — a range that captures both the depth of the 2024–2025 trucking downturn and the recovery underway. Its PEG ratio of 0.92 stands well below the transportation industry average of 1.64, representing one of the widest growth-valuation discounts in the sector.Q2 2026 revenue is projected to grow 10.4% year over year, with results due in late July. Current-year EPS consensus has increased 5.2% over the past 60 days, driven by improving spot rates, contract repricing, and inventory restocking dynamics that are normalizing freight volumes after two years of oversupply in truckload capacity.
Outlook
The three Zacks #1 growth picks for July 24 — ALH, NESR, and KNX — represent distinct sector exposures unified by a common signal: rising earnings estimate revisions from the analyst consensus. Alliance Laundry Holdings offers equipment sector growth at a below-peer PEG multiple. National Energy Services Reunited delivers high-velocity earnings expansion anchored in durable Middle East oilfield spending. Knight-Swift presents a trucking recovery trade at a significant valuation discount to the transportation peer group. With all three companies scheduled to report results within the next four weeks, upcoming earnings will serve as the immediate test for the revision momentum that underpins each Zacks Rank #1 growth designation.
