As investors eagerly anticipate the Federal Open Market Committee (FOMC) meeting on Wednesday, several top-rated Zacks stocks from various sectors have caught their attention. These companies have not only beaten earnings expectations but also displayed strong potential for growth.
A Promising Cloud Services Giant
One standout tech stock is Arista Networks (ANET), a leading provider of cloud networking solutions. Arista Networks had an exceptional third quarter, surpassing both top and bottom-line expectations. The company’s Q3 earnings of $1.83 per share exceeded the Zacks Consensus of $1.58 per share by 16%, with a remarkable year-over-year increase of 46%. Arista’s sales of $1.50 billion also exceeded estimates by 2% and saw a 28% growth from the previous year’s quarter. With its annual earnings projected to soar by 35% in fiscal 2023 and sales forecasted to climb 31% to $5.75 billion, Arista Networks is poised for substantial growth.
In the transportation sector, two companies stood out on Monday: XPO (XPO) and Matson (MTX). Both companies beat expectations for their top and bottom lines, prompting favorable earnings estimate revisions. XPO, primarily providing asset-based less-than-truckload (LTL) transportation services in North America, reported Q3 earnings of $0.88 per share, surpassing estimates by 39%. With sales of $1.98 billion, XPO also exceeded expectations by 3%. Matson, offering international logistic services including rail intermodal service, truckload, and LTL, reported Q3 earnings of $3.40 per share, surpassing estimates by 1%.
Undervalued Construction Titan
Boise Cascade (BCC), a wood products manufacturer and building materials distributor, is an intriguing stock in the construction sector. Despite missing sales estimates by approximately -1%, Boise Cascade reported third-quarter earnings of $3.58 per share, surpassing expectations by 3%. The company’s stock is currently undervalued, trading at just 7.9x forward earnings. With annual EPS estimates continuing to rise, Boise Cascade presents an attractive investment opportunity.
These top-rated Zacks stocks have not only beaten Q3 earnings expectations but also exhibit significant potential for growth in 2023 and beyond. Investors looking for viable investment opportunities should consider these stocks, as they continue to impress and outperform market expectations.
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