5 Best Stocks With Attractive Earnings Growth to Invest In

Irrespective of whether it is a start-up or a well-known company, earnings growth is the main priority for any organization. This is because if the company doesn’t make money, it won’t last in the long run.

So, what’s earnings growth? Study a company’s revenues over a given period, subtract the production cost, and you have earnings. By the way, this is also considered the most important variable influencing the share price. But, expectations of earnings play a noteworthy role.

Earnings Estimates & Share Price Movements

Frequently, we have seen a decline in the stock price despite earnings growth and a rally in price following an earnings decline. This is largely the result of a company’s earnings failing to meet market expectations.

Earnings estimates embody analysts’ opinions 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.

Thus, investors should be on the lookout for stocks ready to make a big move. Hence, investors need to buy stocks with historical earnings growth and are seeing a rise in quarterly and annual earnings estimates.

The above criteria narrowed down the universe of around 7,839 stocks to only 29. Here are the top five stocks that stand out:

lululemon athletica is a yoga-inspired athletic apparel company that creates lifestyle components. The company has a Zacks Rank #2 (Buy). LULU’s expected earnings growth rate for the current year is 18.4%.

Coca Cola Femsa produces, markets and distributes soft drinks throughout the metropolitan area of Mexico City. The company has a Zacks Rank #1. KOF’s expected earnings growth rate for the current year is 19.1%.

Hilton Worldwide is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. The company has a Zacks Rank #2. HLT’s expected earnings growth rate for the current year is 19.6%.

Super Micro Computer designs, develops, manufactures, and sells energy-efficient, application-optimized server solutions based on the x86 architecture. The company has a Zacks Rank #1. SMCI’s expected earnings growth rate for the current year is 98.8%.

ServiceNow provides cloud computing services that automate digital workflows to accelerate enterprise IT operations. The company has a Zacks Rank #1. NOW’s expected earnings growth rate for the current year is 26.4%.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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lululemon athletica inc. (LULU): Free Stock Analysis Report

Coca Cola Femsa S.A.B. de C.V. (KOF): Free Stock Analysis Report

Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report

ServiceNow, Inc. (NOW): Free Stock Analysis Report

Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report

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