Core Viewpoint - Earnings growth is essential for company survival and significantly influences share prices, with market expectations playing a critical role in stock performance [1][2]. Earnings Estimates & Share Price Movements - Stock prices may decline despite earnings growth if they fail to meet market expectations, while prices can rally following an earnings decline [2]. Importance of Earnings Estimates - Earnings estimates reflect analysts' views on sales growth, product demand, competitive environment, profit margins, and cost control, serving as a valuable tool for investment decisions and assessing cash flow [3]. Investment Strategy - Investors should focus on stocks with historical earnings growth and increasing quarterly and annual earnings estimates [4]. Screening Measures - A screening process using specific parameters has been established to identify stocks with significant earnings growth and positive estimate revisions, including: - Zacks Rank of 2 or lower, indicating 'Buys' or 'Strong Buys' [5]. - 5-Year Historical EPS Growth greater than the industry average [5]. - Year-over-year earnings growth of 5% or more in the last reported fiscal year [6]. - Positive revisions in current quarter and annual earnings estimates over the last four weeks [6][7]. Top Stocks Identified - The Cheesecake Factory (CAKE) has an expected earnings growth rate of 7.9% and a Zacks Rank of 2 [7]. - LeMaitre Vascular (LMAT) has an expected earnings growth rate of 16.6% and a Zacks Rank of 1 [8]. - Huron Consulting Group (HURN) has an expected earnings growth rate of 10.5% and a Zacks Rank of 2 [10].
3 Best Earnings Growth Stocks to Buy in March: CAKE, LMAT, HURN