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3 Top-Rated Stocks to Buy as Earnings Approach

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In a week where investors will be primarily focused on July’s CPI numbers, several top-rated stocks are worthy of attention.

Here are three top-rated stocks worthy of investors’ consideration ahead of their quarterly reports on Wednesday, August 9.

The Trade Desk (TTD - Free Report) )

Coveting a Zacks Rank #1 (Strong Buy) The Trade Desk’s stock is certainly one to pay attention to ahead of its second-quarter earnings report. Those on the prowl for tech stocks that could have more upside may have the opportunity with Trade Desk.

Trade Desk’s Internet-Services Industry is currently in the top 31% of over 250 Zacks industries and the company looks poised to benefit with its platform providing digital advertising services.

Slowly but surely ad spending has increased with inflation beginning to ease and Trade Desk’s Q2 earnings are expected to climb 30% at $0.26 per share. This compares to EPS of $0.20 in the prior-year quarter with Q2 sales forecasted to jump 21% to $455.21 million compared to $376.96 million a year ago.

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Shares of TTD have soared 89% YTD to easily top the Nasdaq’s +33% and this strong performance could continue if Q2 results help reconfirm Trade Desk’s intriguing growth trajectory.

As shown above, annual earnings are now expected to climb 20% in fiscal 2023 and soar another 23% in FY24 at $1.53 per share. Earnings estimates have remained higher over the last quarter with sales now forecasted to jump 22% this year and soar another 25% in FY24 to $2.42 billion. 

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Honda Motor Co. (HMC - Free Report) )

Several automakers have stood out this earnings season and Honda Motors joins the club with its stock sporting a Zacks Rank #2 (Buy). Notably, Honda’s Automotive-Foreign Industry is in Zacks top 18%.

Set to report its fiscal first-quarter results on Wednesday, Honda’s earnings are projected to soar 48% at $0.99 a share versus EPS of $0.67 a year ago. First-quarter sales are anticipated to rise 13% to $33.57 billion. It’s also noteworthy that the Zacks Expected Surprise Prediction (ESP) indicates Honda could surpass earnings expectations with the Most Accurate Estimate having Q1 EPS at $1.08.

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More impressive, annual earnings are expected to climb 33% in Honda’s current fiscal 2024 to $4.04 per share compared to EPS of $3.03 in FY23. Fiscal 2025 earnings are expected to rise another 3%.

On the top line, FY24 sales are expected to jump 13% and then dip -4% in FY25 to $134.84 billion. Still, earnings estimates have trended higher with Honda stock up +36% this year to outperform the broader indexes.

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Jack In The Box (JACK - Free Report) )

Lastly, the Retail-Restaurants Industry is also in Zacks top 18% and Jack In The Box stock sports a Zacks Rank #2 (Buy). Set to report its fiscal third-quarter results on Wednesday, the trend of earnings estimate revisions is compelling for Jack In the Box ahead of its report.

This is despite Q3 earnings expected to dip -3% at $1.33 per share following a tough to compete-against quarter. First quarter sales are forecasted to dip -1% to 393.53 million. However, earnings estimates are up and the Zacks ESP now indicates Jack In The Box could beat expectations with the Most Accurate Estimate having Q3 EPS at $1.34.

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Furthermore, annual earnings are now projected to rise 4% in FY23 and jump another 11% in FY24 at $6.81 per share. Total sales are forecasted to climb 16% this year and then dip -3% in FY24 to $1.65 billion. With that being said, annual earnings estimates are still noticeably higher and Jack In The Box stock is up +40% YTD to also top the broader indexes.

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Bottom Line

These companies are benefitting from strong business environments at the moment. Rising earnings estimates are a great sign they may be able to reach or exceed their quarterly expectations and offer positive guidance. More importantly, this could extend the strong performances of Trade Desk, Honda, and Jack In The Box stock this year.


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