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Zacks.com featured highlights Applied Industrial Technologies, Arch Capital Group, Otter Tail and Visa

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For Immediate Release

Chicago, IL – August 18, 2022 – Stocks in this week’s article are Applied Industrial Technologies (AIT - Free Report) , Arch Capital Group (ACGL - Free Report) , Otter Tail (OTTR - Free Report) and Visa (V - Free Report) .

4 of the Best Stocks to Invest In for Superb Earnings Growth

Earnings growth is the highest priority for the top brass of any start-up or an established company. This is because if the company doesn't make money, it won't last long.

Study a company's revenues over a given period of time, subtract the cost of production, and you have its earnings. This metric is also considered the most important variable influencing 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 price following an earnings decline. This is largely the 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 seeing a rise in quarterly and annual earnings estimates.

Here are the top four stocks that stand out:

Applied Industrial Technologies is a distributor of value-added industrial products. Applied Industrial Technologies currently has a Zacks Rank #1 (Strong Buy). AIT's expected earnings growth rate for the current year is 10.9%. You can see the complete list of today's Zacks #1 Rank stocks here.

Arch Capital Group offers insurance, reinsurance and mortgage insurance across the world. Arch Capital currently has a Zacks Rank #1. ACGL's expected earnings growth rate for the current year is 27.9%.

Otter Tail is involved in the production, transmission, distribution and sale of electric energy. Otter Tail currently has a Zacks Rank #1. OTTR's expected earnings growth rate for the current year is 67.4%.

Visa operates as a payments technology company all over the world. Visa currently has a Zacks Rank #2 (Buy). Visa's expected earnings growth rate for the current year is 25%.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1968975/4-of-the-best-stocks-to-invest-in-for-superb-earnings-growth

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.

About Screen of the Week

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Strong Stocks that Should Be in the News

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