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5 Top Stocks to Buy for Superb Earnings Growth in 2024
As we head into the presidential election year, geopolitical issues and stretched valuations may create gyrations in the stock market. On the other hand, the possibility of multiple interest cuts might help the economy stay afloat. So, whatever the outcome of the stock market in 2024, from an investment standpoint, investing in companies exhibiting solid earnings growth should be the highest priority. This is because if the company doesn't make money, it won't last long.
So, what is earnings growth? Study a company's revenues over a given period, subtract the production cost, and you have earnings. By the way, this is also considered the most important variable influencing share price. But, expectations of earnings play a noteworthy role.
Earnings Estimates & Share Price Movements
Frequently, we have seen a decline in the stock price despite earnings growth and a rally in price following an earnings decline. This is largely the result of a company's earnings failing to meet market expectations.
Earnings estimates embody analysts' opinions 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.
Thus, investors should look for stocks ready to make a big move. Hence, investors need to buy stocks with historical earnings growth and are seeing a rise in quarterly and annual earnings estimates.
The above criteria narrowed the universe of around 7,839 stocks to only six. Here are the top five stocks that stand out:
Beacon Roofing Supply is the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products in the United States and Canada. BECN's expected earnings growth rate for the next year is 7.1%. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Deckers Outdoor is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. DECK's expected earnings growth rate for next year is 13.2%. The company currently has a Zacks Rank #1.
A. O. Smith is one of the leading manufacturers of commercial and residential water heating equipment and water treatment products in the world. AOS' expected earnings growth rate for next year is 5.8%. The company carries a Zacks Rank #2 (Buy) at present.
Assurant is a global provider of risk management solutions in the housing and lifestyle markets. The company has a Zacks Rank #1. AIZ's expected earnings growth rate for next year is 4.2%.
Tradeweb Markets is an operator of electronic marketplaces for the trading of products across the rates, credit, money markets, and equities asset classes. The company has a Zacks Rank #1. TW's expected earnings growth rate for next year is 16.4%.
You can sign up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
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Zacks.com featured highlights include Beacon Roofing Supply, Deckers Outdoor, A. O. Smith Assurant and Tradeweb Markets
For Immediate Release
Chicago, IL – December 26, 2023 – Stocks in this week’s article are Beacon Roofing Supply (BECN - Free Report) , Deckers Outdoor (DECK - Free Report) , A. O. Smith (AOS - Free Report) , Assurant (AIZ - Free Report) and Tradeweb Markets (TW - Free Report) .
5 Top Stocks to Buy for Superb Earnings Growth in 2024
As we head into the presidential election year, geopolitical issues and stretched valuations may create gyrations in the stock market. On the other hand, the possibility of multiple interest cuts might help the economy stay afloat. So, whatever the outcome of the stock market in 2024, from an investment standpoint, investing in companies exhibiting solid earnings growth should be the highest priority. This is because if the company doesn't make money, it won't last long.
So, what is earnings growth? Study a company's revenues over a given period, subtract the production cost, and you have earnings. By the way, this is also considered the most important variable influencing share price. But, expectations of earnings play a noteworthy role.
Earnings Estimates & Share Price Movements
Frequently, we have seen a decline in the stock price despite earnings growth and a rally in price following an earnings decline. This is largely the result of a company's earnings failing to meet market expectations.
Earnings estimates embody analysts' opinions 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.
Thus, investors should look for stocks ready to make a big move. Hence, investors need to buy stocks with historical earnings growth and are seeing a rise in quarterly and annual earnings estimates.
The above criteria narrowed the universe of around 7,839 stocks to only six. Here are the top five stocks that stand out:
Beacon Roofing Supply is the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products in the United States and Canada. BECN's expected earnings growth rate for the next year is 7.1%. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Deckers Outdoor is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. DECK's expected earnings growth rate for next year is 13.2%. The company currently has a Zacks Rank #1.
A. O. Smith is one of the leading manufacturers of commercial and residential water heating equipment and water treatment products in the world. AOS' expected earnings growth rate for next year is 5.8%. The company carries a Zacks Rank #2 (Buy) at present.
Assurant is a global provider of risk management solutions in the housing and lifestyle markets. The company has a Zacks Rank #1. AIZ's expected earnings growth rate for next year is 4.2%.
Tradeweb Markets is an operator of electronic marketplaces for the trading of products across the rates, credit, money markets, and equities asset classes. The company has a Zacks Rank #1. TW's expected earnings growth rate for next year is 16.4%.
You can sign up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2201412/5-top-stocks-to-buy-for-superb-earnings-growth-in-2024
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
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
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Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.