What an incredible breakout for the market in recent weeks. It seems like there is just no stopping us, despite the constant threat of global conflict, raging inflationary pressure, and increasingly hawkish central banks around the world. It may feel like no matter what stock you decide to invest in, it’s going to turn out alright. A word of caution though. Eventually, earnings are going to matter, especially when the market reels in a bit.
One way of finding stocks with the best earnings trends is by checking out Zacks Rank #1 (Strong Buy) stocks like today’s Bull of the Day, AvidXchange (AVDX). AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions.
The reason for the favorable rank is that three analysts have increased their estimates for both the current year and next year. That has pushed up the Zacks Consensus Estimate for the current year from 12 cents to 22 cents over the last ninety days. Estimates are also up from 31 cents to 35 cents for next year. That means current year earnings growth is slated to come in at 214% while next year’s number is set to increase 55.68%.
Image Source: Zacks Investment Research
Since bottoming out in early 2022, estimates have continued to tick to the upside for the stock. Also, the company keeps beating estimates quarter in and quarter out. Last quarter’s number came out twice as good as expected.
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.
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AvidXchange Holdings, Inc. (AVDX) : 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.
