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4 of the Best Stocks to Buy for Remarkable Earnings Growth

Best Buy (BBY), TechTarget (TTGT), Aon & ArcBest (ARCB) at present boast superb earnings growth, which undoubtedly makes them compelling investment ch...

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This story originally appeared on Zacks

Regardless of whether it is a start-up or an established company, earnings growth is the highest priority for the top brass of any organization. After all, if the company doesn’t make money, it won’t last over the long haul.

- Zacks

This metric is also considered the most important variable in influencing the share price. But, expectations of earnings also play a significant role.

Earnings Estimates & Share Price Movements

Often, we have seen a decline in the stock price despite earnings growth and a rally in the price following an earnings decline. This is largely a result of a company’s earnings failing to meet market expectations.

Earnings estimates embody analysts’ opinion on factors such as sales growth, product demand, competitive industry environment, profit margins and cost control. Thus, earnings estimates serve as a valuable tool while making investment decisions. Earnings estimates also help analysts assess the cash flow to determine the fair value of a firm.

Investors, thus, should be on the lookout for stocks that are ready to make a big move. Hence, it is important for investors to buy stocks that have historical earnings growth and are also seeing a rise in quarterly and annual earnings estimates.

Screening Criteria:

In order to shortlist stocks that have striking earnings growth and positive estimate revisions, we have added the following parameters:

Zacks Rank less than or equal to 2 (Only Zacks' 'Buys' and 'Strong Buys' are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off.)

5-Year Historical EPS Growth (%) greater than X-Industry (stocks with a strong EPS growth history).

% Change EPS F(0)/F(-1) greater than or equal to 5 (companies that saw year-over-year earnings growth of 5% or more in the last reported fiscal).

% Change Q1 Estimates over the last 4 weeks greater than zero (stocks that have seen their current quarter earnings estimates revised higher in the last 4 weeks).

% Change F1 Estimates over the last 1 week greater than zero (stocks that have seen their annual earnings estimates revised higher in the last 1 week).

% Change F1 Estimates over the last 4 weeks greater than zero (stocks that have seen their annual earnings estimates revised higher in the last 4 weeks).

The above criteria narrowed down the universe of around 7,839 stocks to only seven. Here are the top four stocks:

Best Buy Co., Inc. BBY is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, heath, security, appliances and related services. The company has a Zacks Rank #2 (Buy). The company’s expected earnings growth rate for the current year is 23.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TechTarget, Inc. TTGT is a leading online Information Technology media company. The company has a Zacks Rank #1. Its expected earnings growth rate for the current year is 74.8%.

Aon plc AON is a British multinational corporation that offers risk management services, insurance and reinsurance brokerage, human resource consulting and outsourcing services worldwide. The company has a Zacks Rank #2. Its expected earnings growth rate for the current year is 18.8%.

ArcBest Corporation ARCB provides freight transportation services and solutions. The company has a Zacks Rank #1. The company’s expected earnings growth rate for the current year is 94.4%.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance



Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Best Buy Co., Inc. (BBY): Free Stock Analysis Report

 

Aon plc (AON): Free Stock Analysis Report

 

ArcBest Corporation (ARCB): Free Stock Analysis Report

 

TechTarget, Inc. (TTGT): Free Stock Analysis Report

 

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