4 Best Stocks to Invest in for Solid Earnings Growth

Core Viewpoint - Earnings growth is essential for the sustainability of any organization, as it directly influences share price and market expectations [1][2]. Earnings Estimates & Share Price Movements - Stock prices can decline despite earnings growth if they fail to meet market expectations, highlighting the importance of earnings estimates in investment decisions [2]. - Earnings estimates reflect analysts' views on sales growth, product demand, competitive environment, profit margins, and cost control, serving as a tool for assessing a firm's fair value [2]. Screening Measures - A set of parameters is used to identify stocks with significant earnings growth and positive estimate revisions, including: - Zacks Rank of 2 or lower, indicating 'Buys' or 'Strong Buys' [3]. - 5-Year Historical EPS Growth greater than the industry average [3]. - Year-over-year earnings growth of at least 5% in the last fiscal year [3]. - Positive revisions in current quarter earnings estimates over the last 4 weeks [3]. - Positive revisions in annual earnings estimates over the last week [3][4]. Notable Stocks - The screening process narrowed down to 14 stocks, with the following notable mentions: - Performance Food Group (PFGC) with a Zacks Rank of 2 and an expected earnings growth rate of 9.8% for the current year [4]. - Wingstop (WING) with a Zacks Rank of 2 and an expected earnings growth rate of nearly 21% [4]. - Meta Platforms (META) with a Zacks Rank of 2 and an expected earnings growth rate of approximately 35% for the current year [4]. - Arista Networks (ANET) with a Zacks Rank of 1 and an expected earnings growth rate of 7.5% [5].