For Immediate Release
Chicago, IL – January 13, 2021 – Stocks in this week’s article are IDEXX Laboratories, Inc. (
IDXX Quick Quote IDXX - Free Report) , AGCO Corporation ( AGCO Quick Quote AGCO - Free Report) , D.R. Horton, Inc. ( DHI Quick Quote DHI - Free Report) and MSCI Inc. ( MSCI Quick Quote MSCI - Free Report) . 4 of the Best Stocks to Buy for Solid Earnings Growth in 2021
Irrespective of whether it is a start-up or an established company, earnings growth is the highest priority for the top brass of any organization. After all, if the company doesn't make money, it won't last over the long haul. Consider a company's revenues over a given period of time, subtract the cost of production, and you have earnings.
This metric is also considered the most important variable in influencing the share price. But, expectations of earnings also play a significant role.
Earnings Estimates Determine Share Prices
We have often seen a decline in the stock price despite earnings growth and a rally in the price following an earnings decline. This is largely a 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 also seeing a rise in quarterly and annual earnings estimates.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1244931/4-of-the-best-stocks-to-buy-for-solid-earnings-growth-in-2021 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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Contact: Jim Giaquinto
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