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Opportunities in Top-Rated Stocks Post Earnings Report

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After the recent earnings reports, a selection of stocks has come into the spotlight due to their strong third-quarter performances, offering potential opportunities for investors and traders alike.

Light & Wonder (LNW)

Light & Wonder, a prominent global developer of technology-based gaming products and services, has emerged as a compelling option for investors. With the stock currently holding a Zacks Rank #1 (Strong Buy), it saw an impressive 11% surge after posting robust third-quarter results. The company reported earnings of $0.81 per share, surpassing Q3 estimates of $0.42 per share, with sales reaching $731 million, 2% above estimates. Moreover, the year-over-year growth in earnings and sales further solidifies its position.

The company’s niche within the gaming industry is particularly promising, with forecasted sales growth of 13% in fiscal 2023 and an additional 6% in FY24, amounting to $3.01 billion. Light & Wonder is also showing signs of improved profitability, with projected annual earnings of $1.09 per share for the current year, compared to an adjusted loss of -$0.54 per share in 2022. Furthermore, FY24 earnings are expected to soar by 172% to $2.97 per share.

Consolidated Water (CWCO)

Another stock that has piqued the interest of investors is Consolidated Water, which operates seawater desalination plants and water distribution systems. With a Zack Ranks #2 (Buy) and a 10% spike in its stock following stronger-than-expected Q3 results, Consolidated Water reported earnings of $0.55 per share, surpassing estimates by 41% and exhibiting significant year-over-year growth. Similarly, its third-quarter sales of $49.85 million doubled from the previous year, demonstrating substantial progress.

Notably, Consolidated Water’s current valuation presents an attractive opportunity, trading at 20.6X forward earnings, comparable to the S&P 500’s P/E valuation and at a slight discount to the industry average of 15X. Furthermore, the stock is trading 62% below its decade-long high, indicating potential value.

Conclusion

Following their stellar Q3 results, the growth prospects of Light & Wonder and Consolidated Water appear increasingly appealing. Both companies are capitalizing on their respective industry niches, making it an opportune time for potential investment.

For more customized stock recommendations, you can visit Zacks Investment Research’s latest stock analysis report for free here.

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For the original article, visit Zacks.com by clicking here.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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