For Immediate Release
Chicago, IL – February 25, 2019 – Stocks in this week’s article include Mettler-Toledo International Inc. (MTD - Free Report) , Ternium S.A. (TX - Free Report) , Civista Bancshares, Inc. (CIVB - Free Report) and Arista Networks, Inc. (ANET - Free Report) . Kevin Matras screens for companies showing their 'first' profit and explains why they are ones to watch.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
Buy These 4 Stocks for Stellar Earnings Growth
Consider a company’s revenues over a given period of time, subtract the cost of production and you have earnings. Earnings growth enthralls almost everyone, right from the top brass to research analysts. And why not? If a company doesn’t make money, it won’t last over the long haul.
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/356402/buy-these-4-stocks-for-stellar-earnings-growth
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