In the jungle of investment, companies and organizations alike relentlessly hunt for the shining beacon of earnings growth like a lion stalking its prey. Without a steady stream of earnings, a company is akin to a ship adrift in a stormy sea—its fate uncertain, its survival dubious.
Earnings growth, often regarded as the lifeblood of any business entity, is the culmination of a meticulous arithmetic dance between revenues and costs. It is this elusive variable that tantalizes investors, swaying share prices like leaves in the wind. Oh, the whims of earnings – a capricious master indeed!
Amidst this grand financial opera, certain stocks have emerged as shining stars in the night sky. Behold the likes of Volvo VLVLY, Dycom Industries DY, NVIDIA NVDA, Sitio Royalties Corp. STR, and Primerica PRI, all flaunting their feathers with resplendent earnings growth.
A Peek at Earnings Estimates & Share Price Movements
Ah, the fickle nature of the stock market! A paradoxical dance where a company’s stock price may plummet even as its earnings soar, only to skyrocket after a disappointing earnings report. All this, my friends, is the magic of market expectations—tantalizing, unpredictable, and ever-shifting.
Earnings estimates, the seers’ crystal ball into a company’s financial future, are nuanced tapestries woven from the threads of sales growth, demand for products, competitive landscapes, profit margins, and cost management. These estimates, my dear investors, hold the key to the kingdom, guiding wise souls in their investment sojourn.
Venture forth, seekers of fortunes! Seek ye out the stocks poised for greatness, aligning historical earnings growth with the siren song of rising estimates. Listen to the whispers of the market winds and tread the path of prosperity.
Decoding the Screening Measures
In the grand quest to unearth stocks with magnificent earnings growth and bullish estimate revisions, we invoke the following guiding stars:
Zacks Rank less than or equal to 2 – an exclusive fraternity welcoming only the crème de la crème of ‘Buys’ and ‘Strong Buys’ from Zacks’ esteemed pantheon, a beacon lighting the way for discerning investors.
5-Year Historical EPS Growth (%) greater than X-Industry – a testament to a stock’s enduring prowess, showcasing a legacy of robust earnings growth that outshines its industry peers.
% Change EPS F(0)/F(-1) greater than or equal to 5 – a mark of valor, awarded to companies displaying year-over-year earnings growth of 5% or more in the last fiscal year, a badge of honor, if you will.
% Change Q1 Estimates over the last 4 weeks greater than zero – a whisper in the wind, indicating stocks that have witnessed a surge in their current quarter earnings estimates in the recent tide of time, a precursor to potential glory.
% Change F1 Estimates over the last 1 week greater than zero – a herald of fortune, heralding stocks that have seen an uptick in their annual earnings estimates in the past week, a sign of impending greatness.
% Change F1 Estimates over the last 4 weeks greater than zero – a beacon on the hill, guiding investors to stocks that have witnessed an uplifting revision in their annual earnings estimates over the past 4 weeks, a whisper of promise on the wind.
The criteria, as stringent as the eye of a hawk, has culled a vast universe of 7,839 stocks down to a chosen quintet of luminaries. Behold, the chosen ones:
Volvo, the titan of trucks and construction equipment, dons the mantle of Zacks Rank #2 (Buy). VLVLY’s expected earnings growth over the next five years stands at a stately 16.7%. A behemoth in the making, indeed!
Dycom Industries, the maestro of telecom infrastructure, stands tall with a Zacks Rank #2. DY’s projected five-year earnings growth shines at 23.8%, a symphony of success.
NVIDIA, the maestro of visual computing technologies, reigns supreme with a Zacks Rank #1. NVDA’s anticipated earnings growth over the next five years glistens at a majestic 30.9%, a crown jewel in the tech realm.
Behold, Sitio Royalties, the custodian of mineral riches, graced with a Zacks Rank #1. STR’s expected earnings growth in the forthcoming year gleams at 17.8%, a jewel in the treasure trove of investments.
Enter Primerica, the purveyor of financial services, wrapped in the mantle of Zacks Rank #2. PRI’s expected earnings growth for the current year sparkles at 10.5%, a beacon of financial fortitude.
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Disclosure: The spirits of Zacks Investment Research dwell within this narrative. They may hold or have bartered shares, dabbling in the alchemical world of options relating to the entities discussed herein. An advisory firm tied to Zacks may also partake in these financial dances.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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