Sowing Seeds for Growth
Investors are on the hunt for stocks that can maintain an upward trajectory, especially with the S&P 500 and Nasdaq already boasting a robust +6% growth this year following their stellar performances in 2023.
While avoiding succumbing to FOMO, several top-rated Zacks stocks hold allure as they gear up for their quarterly earnings announced on Tuesday, February 27. Here are three gems representing various sectors that are worth considering as earnings season approaches.
Glimpse into the Future
Agilent Technologies A
The tech sector continues its magnetic pull on investors, with Agilent Technologies standing out ahead of its fiscal first-quarter results. Despite an expected -11% dip in Q1 EPS to $1.21, Agilent’s reasonable valuation is an attractive feature, especially since its Zacks Electronics-Testing Equipment Industry ranks in the top 27% of over 250 Zacks industries.
Weathering the Storm
LendingTree TREE
Amidst the financial sector’s fluctuations, LendingTree’s stock remains a beacon of stability with its attractive valuation. Projected to spike by 100% to $2.14 per share for FY23, LendingTree continues to outperform peers, trading at a modest 14.6X forward earnings multiple.
Bucking Trends
Urban Outfitters URBN
In the retail and wholesale sector, Urban Outfitters shines as a specialty retailer offering a unique blend of fashion and home décor products. With its stock soaring +27% YTD, trading at 12.7X forward earnings, and a projected Q4 EPS increase of 82% to $0.71 per share, Urban Outfitters stands as a solid contender for investors.
Fortunes Unveiled
Urban Outfitters’ robust top-line growth is equally compelling, with a forecasted 7% rise in Q4 sales to $1.49 billion. Anticipating a total sales increase of 7% to $5.15 billion for FY24, Urban Outfitters is set to continue its growth trajectory. The company expects an 86% annual earnings surge to $3.25 per share for the current fiscal year, with a projected 7% rise in fiscal 2025 EPS.
Concluding Thoughts
Should Agilent Technologies, LendingTree, and Urban Outfitters meet or surpass their bottom line expectations, a rally in their respective stock prices may be in the cards. Offering positive guidance could further fuel their growth potential, especially when considering their P/E valuations.
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Agilent Technologies, Inc. (A) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
LendingTree, Inc. (TREE) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
