Wrapping up this week’s earnings lineup a few more stocks have become intriguing after reporting strong third-quarter results on Thursday.
Surpassing Q3 top and bottom line expectations here are two of these top-rated stocks to consider right now.
Light & Wonder LNW: We’ll start with Light & Wonder, a leading developer of technology-based products and services for various gaming industries globally. Light & Wonder’s stock currently sports a Zacks Rank #1 (Strong Buy) and popped +11% today after posting strong third-quarter results on Thursday.
Earnings of $0.81 per share crushed Q3 estimates of $0.42 a share with sales coming in at $731 million and 2% above estimates. Even better, Q3 earnings soared from $0.14 a share in the prior year quarter with sales rising 13% year over year.
Notably, Light & Wonder’s growing niche within the gaming industry is very intriguing as total sales are now forecasted to jump 13% in fiscal 2023 and rise another 6% in FY24 to $3.01 billion.
More importantly is that Light & Wonder is starting to blow past the profitability line with annual earnings expected at $1.09 per share this year compared to an adjusted loss of -$0.54 a share in 2022. Plus, FY24 earnings are projected to skyrocket another 172% to $2.97 per share.
Consolidated Water CWCO: Sporting a Zack Ranks #2 (Buy) Consolidated Water’s stock spiked +10% today after reporting stronger-than-expected Q3 results on Thursday.
Operating seawater desalination plants and water distribution systems, earnings of $0.55 per share surpassed estimates of $0.41 a share by 41% and skyrocketed from $0.05 a share in Q3 2022. Third-quarter sales of $49.85 million topped estimates of $37.02 million by 34% and nearly doubled from $25.05 million a year ago.
Making Consolidated Water’s recent growth more attractive is that CWCO trades far more reasonably relative to its past at 20.6X forward earnings which is on par with the S&P 500’s P/E valuation and not a stretched premium to the industry average of 15X. Furthermore, Consolidated Water’s stock now trades 62% below its decade-long high of 54.9X and at a slight discount to the median of 21.2X.
Bottom Line
Following stellar Q3 results, the growth of Light & Wonder and Consolidated Water has become more appealing. Both companies are starting to capitalize on the niches they have in their respective industries with now looking like a good time to invest.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Wrapping up this week’s earnings lineup a few more stocks have become intriguing after reporting strong third-quarter results on Thursday.
Surpassing Q3 top and bottom line expectations here are two of these top-rated stocks to consider right now.
Light & Wonder LNW: We’ll start with Light & Wonder, a leading developer of technology-based products and services for various gaming industries globally. Light & Wonder’s stock currently sports a Zacks Rank #1 (Strong Buy) and popped +11% today after posting strong third-quarter results on Thursday.
Earnings of $0.81 per share crushed Q3 estimates of $0.42 a share with sales coming in at $731 million and 2% above estimates. Even better, Q3 earnings soared from $0.14 a share in the prior year quarter with sales rising 13% year over year.
Notably, Light & Wonder’s growing niche within the gaming industry is very intriguing as total sales are now forecasted to jump 13% in fiscal 2023 and rise another 6% in FY24 to $3.01 billion.
More importantly is that Light & Wonder is starting to blow past the profitability line with annual earnings expected at $1.09 per share this year compared to an adjusted loss of -$0.54 a share in 2022. Plus, FY24 earnings are projected to skyrocket another 172% to $2.97 per share.
Consolidated Water CWCO: Sporting a Zack Ranks #2 (Buy) Consolidated Water’s stock spiked +10% today after reporting stronger-than-expected Q3 results on Thursday.
Operating seawater desalination plants and water distribution systems, earnings of $0.55 per share surpassed estimates of $0.41 a share by 41% and skyrocketed from $0.05 a share in Q3 2022. Third-quarter sales of $49.85 million topped estimates of $37.02 million by 34% and nearly doubled from $25.05 million a year ago.
Making Consolidated Water’s recent growth more attractive is that CWCO trades far more reasonably relative to its past at 20.6X forward earnings which is on par with the S&P 500’s P/E valuation and not a stretched premium to the industry average of 15X. Furthermore, Consolidated Water’s stock now trades 62% below its decade-long high of 54.9X and at a slight discount to the median of 21.2X.
Bottom Line
Following stellar Q3 results, the growth of Light & Wonder and Consolidated Water has become more appealing. Both companies are starting to capitalize on the niches they have in their respective industries with now looking like a good time to invest.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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