We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Only 2 Stocks Driving Explosive Earnings Growth in 2026 - NVDA & AVGO
Read MoreHide Full Article
Key Takeaways
NVIDIA is delivering strong earnings growth, with current-year EPS expected to rise nearly 69%.
Broadcom is also posting robust gains, with earnings projected to grow 67.9% this year.
Both stocks show rising earnings estimates, highlighting momentum and potential for price moves.
Earnings growth is essential for any organization, regardless of size, because profitability determines long-term survival. Earnings are calculated by subtracting the cost of producing goods and services from a company’s revenues over a period. Earnings strongly influence share prices, with earnings expectations playing a major role.
On that note, NVIDIA Corporation (NVDA - Free Report) and Broadcom Inc. (AVGO - Free Report) are delivering strong and impressive earnings growth this year.
Earnings Estimates & Share Price Movements
We have frequently seen stock prices decline despite earnings growth or rally after an earnings decline. This is largely the result of a company’s earnings failing to meet market expectations.
Earnings estimates reflect analysts’ views on factors such as sales growth, product demand, the competitive industry environment, profit margins, and cost control. Consequently, earnings estimates are a valuable tool for making investment decisions. They also assist analysts in evaluating cash flow to determine a firm's fair value.
Thus, investors should be on the lookout for stocks ready to make a big move. Hence, investors need to buy stocks with a history of earnings growth, and are seeing a rise in quarterly and annual earnings estimates.
Screening Measures Using Research Wizard:
To shortlist stocks that have striking earnings growth and positive estimate revisions, we have added the following parameters:
Zacks Rank less than or equal to 2 (Only Zacks' 'Buys' and 'Strong Buys' are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off.)
5-Year Historical EPS Growth (%) greater than X-Industry (stocks with a strong EPS growth history).
% Change EPS F(0)/F(-1) greater than or equal to 5 (companies that saw year-over-year earnings growth of 5% or more in the last reported fiscal).
% Change Q1 Estimates over the last 4 weeks greater than zero (stocks that have seen their current quarter earnings estimates revised higher in the last 4 weeks).
% Change F1 Estimates over the last 1 week greater than zero (stocks that have seen their annual earnings estimates revised higher in the last 1 week).
% Change F1 Estimates over the last 4 weeks greater than zero (stocks that have seen their annual earnings estimates revised higher in the last 4 weeks).
The above criteria narrowed the universe of around 7,839 stocks to only two. Here are the stocks:
NVIDIA
NVIDIA operates as a provider of large-scale AI infrastructure for data centers. The company’s expected earnings growth rate for the current year is nearly 69% (read more: NVIDIA vs. TSMC: One AI Stock Is a Clear Buy Right Now).
Broadcom designs and supplies semiconductor devices and infrastructure software worldwide. The company’s expected earnings growth rate for the current year is 67.9%.
View the Zacks #1 Rank List
Image: Bigstock
Only 2 Stocks Driving Explosive Earnings Growth in 2026 - NVDA & AVGO
Key Takeaways
Earnings growth is essential for any organization, regardless of size, because profitability determines long-term survival. Earnings are calculated by subtracting the cost of producing goods and services from a company’s revenues over a period. Earnings strongly influence share prices, with earnings expectations playing a major role.
On that note, NVIDIA Corporation (NVDA - Free Report) and Broadcom Inc. (AVGO - Free Report) are delivering strong and impressive earnings growth this year.
Earnings Estimates & Share Price Movements
We have frequently seen stock prices decline despite earnings growth or rally after an earnings decline. This is largely the result of a company’s earnings failing to meet market expectations.
Earnings estimates reflect analysts’ views on factors such as sales growth, product demand, the competitive industry environment, profit margins, and cost control. Consequently, earnings estimates are a valuable tool for making investment decisions. They also assist analysts in evaluating cash flow to determine a firm's fair value.
Thus, investors should be on the lookout for stocks ready to make a big move. Hence, investors need to buy stocks with a history of earnings growth, and are seeing a rise in quarterly and annual earnings estimates.
Screening Measures Using Research Wizard:
To shortlist stocks that have striking earnings growth and positive estimate revisions, we have added the following parameters:
Zacks Rank less than or equal to 2 (Only Zacks' 'Buys' and 'Strong Buys' are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off.)
5-Year Historical EPS Growth (%) greater than X-Industry (stocks with a strong EPS growth history).
% Change EPS F(0)/F(-1) greater than or equal to 5 (companies that saw year-over-year earnings growth of 5% or more in the last reported fiscal).
% Change Q1 Estimates over the last 4 weeks greater than zero (stocks that have seen their current quarter earnings estimates revised higher in the last 4 weeks).
% Change F1 Estimates over the last 1 week greater than zero (stocks that have seen their annual earnings estimates revised higher in the last 1 week).
% Change F1 Estimates over the last 4 weeks greater than zero (stocks that have seen their annual earnings estimates revised higher in the last 4 weeks).
The above criteria narrowed the universe of around 7,839 stocks to only two. Here are the stocks:
NVIDIA
NVIDIA operates as a provider of large-scale AI infrastructure for data centers. The company’s expected earnings growth rate for the current year is nearly 69% (read more: NVIDIA vs. TSMC: One AI Stock Is a Clear Buy Right Now).
NVDA currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Broadcom
Broadcom designs and supplies semiconductor devices and infrastructure software worldwide. The company’s expected earnings growth rate for the current year is 67.9%.
AVGO currently has a Zacks Rank #1 (read more: Beyond NVIDIA: 2 AI Chip Stocks Positioned for Big Upside in 2026).