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There's Opportunity Brewing in These Top-Rated Stocks After Earnings

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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 - Free Report) : 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.

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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.

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Consolidated Water (CWCO - Free Report) : 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.

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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.

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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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Consolidated Water Co. Ltd. (CWCO) - free report >>

Light & Wonder, Inc. (LNW) - free report >>

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