HomeMost PopularInvestingTop Ranked Stocks with Strong Earnings Growth Forecasts: A Promising Investment Opportunity

Top Ranked Stocks with Strong Earnings Growth Forecasts: A Promising Investment Opportunity

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Identifying stocks with high earnings growth is a powerful strategy for investors looking to secure high returns. Earnings growth serves as a leading indicator of a company’s financial health and its potential for future stock price appreciation.

The Stocks to Watch Out For

Here are two standout stocks that not only have EPS forecasts exceeding 20% annually but also hold a Zacks Rank #1 (Strong Buy) rating, increasing the likelihood of near-term strength and long-term success.

Apollo Global Management (APO)

Apollo Global Management is a globally recognized leader in alternative investment management, specializing in private equity, credit, and real assets. With a contrarian, value-oriented investment strategy, Apollo focuses on distressed investments, corporate carve-outs, and opportunistic buyouts in the private equity, credit, and real estate sectors. The company manages funds for institutional and individual investors, harnessing a diversified and substantial capital base. Renowned for its rigorous approach, Apollo has earned a reputation for delivering robust returns.

Current quarter earnings estimates for Apollo Global Management have been raised by 4.1% over the last two months, projected to grow 34% YoY to $1.78 per share. FY23 earnings estimates have also increased by 4.4%, expected to climb 29% YoY to $6.73 per share. Sales for this year and next year are forecasted to grow by 22% and 15% YoY, respectively. Furthermore, EPS is projected to grow by 22.2% annually over the next 3-5 years.

Apollo Global Management trades at a reasonable valuation of 14.5x one year forward earnings, slightly above its 10-year median of 12.3x. It also offers a dividend yield of 1.9%, having raised the payout by 7.5% over the last year. With a compelling technical chart pattern, a breakout above the $91.50 level could signal a bullish trend.

Option Care Health (OPCH)

Option Care Health is a prominent player in the healthcare sector, particularly in the provision of home and alternate site infusion services. The company offers products, services, and condition-specific clinical management programs for various medical conditions. Option Care Health is deeply committed to providing quality care to patients in need.

Option Care Health holds a Zacks Rank #1 (Strong Buy) rating and exhibits above-market EPS growth estimates. With EPS predicted to grow 20.2% annually over the next 3-5 years, the company is surpassing the earnings growth rate of the broad market index.

In terms of valuation, Option Care Health is trading well below its average historical valuation. Currently, it stands at a one year forward earnings multiple of 23.3x, significantly below its 10-year median of 43x.

Bottom Line

Finding and investing in stocks with strong earnings growth is essential for investors seeking substantial returns. Apollo Global Management and Option Care Health exemplify promising investment opportunities with their impressive earnings growth forecasts, attractive valuations, and positive market rankings. These stocks offer great potential for future gains.

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