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Earnings growth commonly reflects effective management decisions, successful operations, and improved efficiency, all contributing to shareholder value. In addition, strong earnings growth often translates to share prices rising, making it a critical factor when selecting stocks.
And for those seeking companies with high-growth expectations, three stocks – e.l.f. Beauty (ELF - Free Report) , NVIDIA (NVDA - Free Report) , and Lamb Weston (LW - Free Report) – all fit the criteria nicely.
On top of strong forecasted growth, all three sport a favorable Zacks Rank, reflecting recent positive earnings estimate revisions. As many are aware, rising earnings estimate revisions commonly follow through to near-term share performance.
Let’s take a closer look at each.
e.l.f. Beauty
e.l.f. Beauty is a cosmetics company, with its products primarily consisting of face makeup, eye makeup, lip products, nail products, and cosmetic kits. The stock is a Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across the board.
Image Source: Zacks Investment Research
The company’s forecasted growth is impossible to ignore, with consensus expectations alluding to 50% earnings growth in its current year on 45% higher revenues. And peeking ahead to FY25, estimates suggest a further 18% earnings boost paired with a 20% sales climb.
As shown below, ELF’s top line growth has already been rock-solid.
Image Source: Zacks Investment Research
And e.l.f. Beauty has consistently posted strong quarterly results, exceeding the Zacks Consensus EPS Estimate by an average of 110% across its last four prints. Just in its latest release, the company penciled in a 90% EPS beat and posted revenue 17% ahead of the Zacks Consensus Sales Estimate.
NVIDIA
NVIDIA has been the story of 2023, with the company’s shares melting up following robust quarterly releases and excitement around artificial intelligence (AI). The revisions trend has been highly bullish for its current year, with the $10.74 Zacks Consensus EPS Estimate up 140% since last October.
Image Source: Zacks Investment Research
Demand for the company’s AI chips is expected to further bolster its top and bottom line performance, with estimates suggesting 220% earnings growth in its current year and a doubling of revenue.
And the growth isn’t expected to cool, with FY25 estimates indicating an additional 50% of earnings growth on 50% higher sales.
Image Source: Zacks Investment Research
Keep an eye out for the company’s next quarterly release expected on November 21st, as the Zacks Consensus EPS Estimate of $3.34 suggests a 480% jump year-over-year. Our consensus revenue estimate stands at $16.1 billion in sales, 171% higher than the year-ago figure.
Lamb Weston
Lamb Weston, a current Zacks Rank #1 (Strong Buy), is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. The company has seen positive earnings estimate revisions nearly across all timeframes.
Image Source: Zacks Investment Research
No different than those above, the company boasts a positive growth trajectory, with earnings forecasted to climb 25% in its current year and an additional 6.3% in FY25. Regarding top-line expectations, estimates allude to 30% growth in its current year and 5.4% growth in FY25.
LW shares could also attract those with a preference for income, with shares currently yielding 1.3% annually paired with a sustainable payout ratio sitting at 20% of the company’s earnings. And LW has displayed a shareholder-friendly nature, reflected by its 7.5% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
Earnings growth typically indicates management decisions are yielding positive results, operations are running smoothly, and efficiency is on the rise, all of which contribute to enhancing shareholder value.
And for those seeking companies with high-growth trajectories, all three above – e.l.f. Beauty (ELF - Free Report) , NVIDIA (NVDA - Free Report) , and Lamb Weston (LW - Free Report) – fit the criteria nicely.
On top of strong forecasted growth, all three sport a favorable Zacks Rank, reflecting bullishness among analysts.
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Earnings growth commonly reflects effective management decisions, successful operations, and improved efficiency, all contributing to shareholder value. In addition, strong earnings growth often translates to share prices rising, making it a critical factor when selecting stocks.
And for those seeking companies with high-growth expectations, three stocks – e.l.f. Beauty (ELF - Free Report) , NVIDIA (NVDA - Free Report) , and Lamb Weston (LW - Free Report) – all fit the criteria nicely.
On top of strong forecasted growth, all three sport a favorable Zacks Rank, reflecting recent positive earnings estimate revisions. As many are aware, rising earnings estimate revisions commonly follow through to near-term share performance.
Let’s take a closer look at each.
e.l.f. Beauty
e.l.f. Beauty is a cosmetics company, with its products primarily consisting of face makeup, eye makeup, lip products, nail products, and cosmetic kits. The stock is a Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across the board.
Image Source: Zacks Investment Research
The company’s forecasted growth is impossible to ignore, with consensus expectations alluding to 50% earnings growth in its current year on 45% higher revenues. And peeking ahead to FY25, estimates suggest a further 18% earnings boost paired with a 20% sales climb.
As shown below, ELF’s top line growth has already been rock-solid.
Image Source: Zacks Investment Research
And e.l.f. Beauty has consistently posted strong quarterly results, exceeding the Zacks Consensus EPS Estimate by an average of 110% across its last four prints. Just in its latest release, the company penciled in a 90% EPS beat and posted revenue 17% ahead of the Zacks Consensus Sales Estimate.
NVIDIA
NVIDIA has been the story of 2023, with the company’s shares melting up following robust quarterly releases and excitement around artificial intelligence (AI). The revisions trend has been highly bullish for its current year, with the $10.74 Zacks Consensus EPS Estimate up 140% since last October.
Image Source: Zacks Investment Research
Demand for the company’s AI chips is expected to further bolster its top and bottom line performance, with estimates suggesting 220% earnings growth in its current year and a doubling of revenue.
And the growth isn’t expected to cool, with FY25 estimates indicating an additional 50% of earnings growth on 50% higher sales.
Image Source: Zacks Investment Research
Keep an eye out for the company’s next quarterly release expected on November 21st, as the Zacks Consensus EPS Estimate of $3.34 suggests a 480% jump year-over-year. Our consensus revenue estimate stands at $16.1 billion in sales, 171% higher than the year-ago figure.
Lamb Weston
Lamb Weston, a current Zacks Rank #1 (Strong Buy), is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. The company has seen positive earnings estimate revisions nearly across all timeframes.
Image Source: Zacks Investment Research
No different than those above, the company boasts a positive growth trajectory, with earnings forecasted to climb 25% in its current year and an additional 6.3% in FY25. Regarding top-line expectations, estimates allude to 30% growth in its current year and 5.4% growth in FY25.
LW shares could also attract those with a preference for income, with shares currently yielding 1.3% annually paired with a sustainable payout ratio sitting at 20% of the company’s earnings. And LW has displayed a shareholder-friendly nature, reflected by its 7.5% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
Earnings growth typically indicates management decisions are yielding positive results, operations are running smoothly, and efficiency is on the rise, all of which contribute to enhancing shareholder value.
And for those seeking companies with high-growth trajectories, all three above – e.l.f. Beauty (ELF - Free Report) , NVIDIA (NVDA - Free Report) , and Lamb Weston (LW - Free Report) – fit the criteria nicely.
On top of strong forecasted growth, all three sport a favorable Zacks Rank, reflecting bullishness among analysts.