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5 Strong Buy Growth Stocks With High Margins to Grab Before Earnings

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Key Takeaways

  • Chord Energy, Halozyme, Sezzle, SanDisk and Teradyne combine strong growth with high operating margins.
  • SanDisk's full-year revenues surged 175%, while Teradyne's second-quarter revenue rose 104% year over year.
  • Halozyme raised its 2026 revenue outlook, while Sezzle lifted its adjusted net income and EPS guidance.

As the October 2026 earnings season gathers momentum, investors should focus on companies combining strong revenue growth, improving profitability and sustainable business demand. Here, we identify five compelling candidates, Chord Energy (CHRD - Free Report) , Halozyme Therapeutics (HALO - Free Report) , Sezzle (SEZL - Free Report) , SanDisk (SNDK - Free Report) and Teradyne (TER - Free Report) , that carry a Zacks Rank #1 (Strong Buy) and a Growth Score of A.

Buying before earnings can provide exposure to potential positive surprises.

The investment backdrop, however, is becoming more challenging. The Federal Reserve's Oct. 27-28 meeting is approaching amid persistent inflation and elevated interest rates. A Reuters poll published on Oct. 20 found that 94 of 100 economists surveyed expected the Fed to hold rates at 3.75-4% in October, while most anticipated another increase in December.

Artificial intelligence (AI), semiconductor testing and data storage remain important growth drivers. The Federal Reserve Bank of San Francisco's Oct. 15 analysis noted that AI infrastructure investment continues to support economic growth, with information-processing equipment investment growing at an annualized rate exceeding 20% on average since early 2025.

Healthcare technology and digital payments offer additional diversification, while disciplined energy producers can benefit from operating efficiency and shareholder distributions.

5 Strong Buy Growth Stocks to Invest Now

Chord Energy: The company’s preliminary third-quarter update, released Oct. 19, showed oil production of 165,400-165,600 barrels per day, above its prior guidance. Total production also exceeded expectations, while capital expenditures remained within guidance at $379-$385 million. The company repurchased $205 million of shares during the quarter and announced a $550 million divestiture of non-operated Marcellus assets.

Chord Energy sports a Zacks Rank #1 and a Growth Score of A, supported by its production execution and capital discipline. Its trailing 12-month operating margin stands at 17.14%, reflecting its ability to generate operating profits amid commodity-price fluctuations. Its third-quarter 2026 earnings release is scheduled for Nov. 3, with the company expected to report earnings growth of 94.9% year over year.

Halozyme: Halozyme's second-quarter 2026 revenues increased 48% year over year, while royalty revenue rose 50%. Following the strong performance, management raised its 2026 revenue outlook to $1.835-$1.910 billion and adjusted EBITDA forecast to $1.225-$1.280 billion.

Halozyme sports a Zacks Rank #1 and a Growth Score of A, supported by its royalty-driven business model and expanding drug-delivery partnerships. Its trailing 12-month operating margin stands at 38.81%, showing a strong profitability trend. Its third-quarter 2026 earnings release is scheduled for Nov. 2, with investors likely to focus on royalty growth, licensing momentum and updated full-year guidance. HALO is expected to report third-quarter earnings growth of 32.6% on revenue growth of 35.7%.

SanDisk: SanDisk reported fourth-quarter fiscal 2026 revenues of $8.97 billion, up 51% sequentially, while full-year revenues surged 175% to $20.25 billion. The company projected first-quarter fiscal 2027 revenues of $10.3-$10.8 billion and adjusted EPS of $44-$46, reflecting strong demand for its memory and storage products.

SanDisk sports a Zacks Rank #1 and a Growth Score of A, supported by rising data-storage requirements and its exposure to AI infrastructure. Its trailing 12-month operating margin stands at 54.25%. Its fiscal first-quarter earnings release is scheduled for Oct. 29. SNDK is expected to report fiscal first-quarter earnings growth of 3689.3% on revenue growth of 358.2%.

Sezzle: The company’s second-quarter 2026 gross merchandise volume increased 37.9% year over year, while revenue surged 51.7%. Net income rose 47.7% and operating income advanced 52.3%. The company raised its 2026 adjusted net income guidance to $185 million and adjusted diluted EPS guidance to $5.25.

Sezzle sports a Zacks Rank #1 and a Growth Score of A, reflecting its strong growth profile and expanding digital payments business. Its trailing 12-month operating margin is 29.62%, indicating healthy operating profitability. Its third-quarter 2026 earnings release is scheduled for Nov. 4, with the company expected to report earnings growth of 80.3% year over year.

Teradyne: Teradyne reported second-quarter 2026 revenue growth of 104% year over year, while GAAP EPS increased to $2.38 from 49 cents a year earlier. Semiconductor testing generated $1.122 billion in revenues, benefiting from memory demand and AI-related opportunities. Management forecast third-quarter revenue of $1.2-$1.3 billion.

Teradyne sports a Zacks Rank #1 and a Growth Score of A, reflecting its growth prospects in semiconductor testing and robotics. Its trailing 12-month operating margin stands at 27.13%, indicating solid operating profitability. Its third-quarter 2026 earnings release is scheduled for Oct. 27, with the company expected to report earnings growth of 140% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.

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