4 Top Earnings Growth Stocks to Buy: RMD, BMI, LDOS, IR

Core Viewpoint - The article discusses the relationship between earnings growth and stock price movements, highlighting that stocks can decline despite earnings growth if they fail to meet market expectations [1][10][23]. Earnings Growth and Stock Performance - Companies such as ResMed (RMD), Badger Meter (BMI), Leidos (LDOS), and Ingersoll Rand (IR) are currently showing strong earnings growth [2]. - Earnings estimates are crucial as they reflect analysts' views on sales growth, product demand, competitive environment, profit margins, and cost control, serving as a valuable tool for investment decisions [3]. Screening Criteria for Stock Selection - The screening measures include a Zacks Rank of 2 or lower, indicating 'Buys' or 'Strong Buys', and a year-over-year earnings growth of at least 5% [4]. - Stocks that have seen their annual earnings estimates revised higher in the last week are also considered [5]. Selected Stocks with Earnings Growth - The screening process narrowed down to six stocks, with the top four being: - ResMed, with an expected earnings growth rate of 19.6% for the current year [6]. - Badger Meter, expected earnings growth rate of 25.5% [17]. - Leidos, expected earnings growth rate of 19.9% [18]. - Ingersoll Rand, expected earnings growth rate of 11.8% [19]. Importance of Earnings Growth - Earnings growth is emphasized as the top priority for any organization, as profitability is essential for survival [10]. - Investors are encouraged to look for stocks with historical earnings growth and rising earnings estimates [12].