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3 Top-Rated Stocks to Consider as Earnings Approach
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Investors are eager for stocks that can keep etching out gains with the S&P 500 and Nasdaq already up over +6% this year following stellar performances for both indexes in 2023.
Of course, investors should never get over-consumed with FOMO but several top-rated Zacks stocks look attractive ahead of their quarterly reports on Tuesday, February 27. With representation from a variety of sectors here are three of these top-rated stocks to consider as earnings approach.
Tech stocks continue to be the apple of investors' eyes and Agilent Technologies is worthy of consideration ahead of its fiscal first quarter results tomorrow. Agilent’s reasonable valuation is appealing considering Its Zacks Electronics-Testing Equipment Industry is in the top 27% of over 250 Zacks industries.
Manufacturing various test and measurement products for multiple end markets, Agilent trades slightly below the industry average of 25.9X forward earnings despite Q1 EPS expected to dip -11% to $1.21 a share. Still, annual earnings are now projected to be up roughly 1% this year and rise another 9% in fiscal 2025 to $6.00 per share. Notably, Agilent has topped earnings expectations in three of its last four quarterly reports posting an average earnings surprise of 2.99%.
LendingTree’s reasonable valuation has made its stock attractive especially as the consumer loan company’s expansive bottom line growth trajectory remains intact. TREE has been one of the better performers out of the financial sector this year spiking +13% to top the broader indexes and still trading at an intriguing 14.6X forward earnings multiple.
Furthermore, LendingTree is expected to round out its FY23 with annual earnings soaring 100% to $2.14 per share even as Q4 EPS is projected to dip to $0.14 a share compared to $0.38 per share a year ago. Fiscal 2024 EPS is forecasted to rise another 9% to $2.33 and LendingTree’s Financial-Mortgage & Related Services Industry is currently in the top 10% of all Zacks industries. To that point, LendingTree has now topped the Zacks EPS Consensus for 12 consecutive quarters posting an astonishing average earnings surprise of 255.51% in its last four quarterly reports.
Rounding out the list, Urban Outfitters’ stock will be one to watch out of the retail and wholesale sector as the specialty retailer continues to carve out a niche in its offering of fashion apparel, footwear, and home décor products. Urban Outfitters stock certainly checks the box in terms of valuation soaring +27% YTD but trading at 12.7X forward earnings. This comes as Q4 EPS is anticipated to climb 82% to $0.71 per share versus $0.39 a share in the comparative quarter.
Image Source: Zacks Investment Research
Urban Outfitters' top line growth is compelling as well with Q4 sales forecasted to rise 7% to $1.49 billion. Overall, total sales are forecasted to be up 7% to $5.15 billion as Urban Outfitters wraps up its FY24 and FY25 sales are projected to rise another 4%. Better still, Urban Outfitters is expected to round out its current fiscal year with annual earnings soaring 86% to $3.25 per share. Fiscal 2025 EPS is currently slated to rise another 7% and Urban Outfitters has exceeded earnings expectations in three of its last four quarterly reports posting an average earnings surprise of 21.95%.
Image Source: Zacks Investment Research
Takeaway
It wouldn’t be surprising if Agilent Technologies, LendingTree, and Urban Outfitters stock rallied if they can reach or exceed their bottom line expectations. Offering positive or better-than-expected guidance could also be crucial but when taking their P/E valuations into account more upside looks plausible.
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3 Top-Rated Stocks to Consider as Earnings Approach
Investors are eager for stocks that can keep etching out gains with the S&P 500 and Nasdaq already up over +6% this year following stellar performances for both indexes in 2023.
Of course, investors should never get over-consumed with FOMO but several top-rated Zacks stocks look attractive ahead of their quarterly reports on Tuesday, February 27. With representation from a variety of sectors here are three of these top-rated stocks to consider as earnings approach.
Agilent Technologies (A - Free Report)
Tech stocks continue to be the apple of investors' eyes and Agilent Technologies is worthy of consideration ahead of its fiscal first quarter results tomorrow. Agilent’s reasonable valuation is appealing considering Its Zacks Electronics-Testing Equipment Industry is in the top 27% of over 250 Zacks industries.
Manufacturing various test and measurement products for multiple end markets, Agilent trades slightly below the industry average of 25.9X forward earnings despite Q1 EPS expected to dip -11% to $1.21 a share. Still, annual earnings are now projected to be up roughly 1% this year and rise another 9% in fiscal 2025 to $6.00 per share. Notably, Agilent has topped earnings expectations in three of its last four quarterly reports posting an average earnings surprise of 2.99%.
Image Source: Zacks Investment Research
LendingTree (TREE - Free Report)
LendingTree’s reasonable valuation has made its stock attractive especially as the consumer loan company’s expansive bottom line growth trajectory remains intact. TREE has been one of the better performers out of the financial sector this year spiking +13% to top the broader indexes and still trading at an intriguing 14.6X forward earnings multiple.
Furthermore, LendingTree is expected to round out its FY23 with annual earnings soaring 100% to $2.14 per share even as Q4 EPS is projected to dip to $0.14 a share compared to $0.38 per share a year ago. Fiscal 2024 EPS is forecasted to rise another 9% to $2.33 and LendingTree’s Financial-Mortgage & Related Services Industry is currently in the top 10% of all Zacks industries. To that point, LendingTree has now topped the Zacks EPS Consensus for 12 consecutive quarters posting an astonishing average earnings surprise of 255.51% in its last four quarterly reports.
Image Source: Zacks Investment Research
Urban Outfitters (URBN - Free Report)
Rounding out the list, Urban Outfitters’ stock will be one to watch out of the retail and wholesale sector as the specialty retailer continues to carve out a niche in its offering of fashion apparel, footwear, and home décor products. Urban Outfitters stock certainly checks the box in terms of valuation soaring +27% YTD but trading at 12.7X forward earnings. This comes as Q4 EPS is anticipated to climb 82% to $0.71 per share versus $0.39 a share in the comparative quarter.
Image Source: Zacks Investment Research
Urban Outfitters' top line growth is compelling as well with Q4 sales forecasted to rise 7% to $1.49 billion. Overall, total sales are forecasted to be up 7% to $5.15 billion as Urban Outfitters wraps up its FY24 and FY25 sales are projected to rise another 4%. Better still, Urban Outfitters is expected to round out its current fiscal year with annual earnings soaring 86% to $3.25 per share. Fiscal 2025 EPS is currently slated to rise another 7% and Urban Outfitters has exceeded earnings expectations in three of its last four quarterly reports posting an average earnings surprise of 21.95%.
Image Source: Zacks Investment Research
Takeaway
It wouldn’t be surprising if Agilent Technologies, LendingTree, and Urban Outfitters stock rallied if they can reach or exceed their bottom line expectations. Offering positive or better-than-expected guidance could also be crucial but when taking their P/E valuations into account more upside looks plausible.