Investors looking to supercharge their portfolios would do well to widen the search aperture. Our search for the seven best stocks poised for magnificent earnings growth next year brings up names such as Teradyne (TER) and Triumph Group (TGI) — stocks far less hyped than Nvidia (NVDA) or Apple (APPL) or the other megacap leaders who continue to dominate the stock market.
↑
X
What Are The Magnificent Seven Stocks?
These Seven Are Best Stocks For Magnificent Earnings Growth
Micron Technology (MU): The provider of memory and storage solutions serves diverse markets: personal computers, mobile, automotive, industrial and data centers, among them. Additionally, the chipmaker stands to benefit from the growth of artificial intelligence (AI)-powered PCs and phones, as well. Analysts expect Micron earnings to rebound strongly in fiscal 2024 from a collapse in 2023. On a per-share basis, analysts anticipate an 829% earnings surge next year on 50% sales growth. The company’s fiscal year ends in August. Micron stock earns a superior 91 Composite Rating and near-perfect 98 RS Rating, both out of a best-possible 99. The AI stock struck an all-time high at 157.54 on June 18. It’s up 70% year to date.
Seagate Technology (STX): The California-based company, with legal incorporation in Ireland, makes solid state drives and enterprise data storage systems. Seagate says it is seeing its markets recover while cloud demand improves. However, it expects a return to revenue growth in the current quarter after a two-year slump. Similar to Micron, analysts forecast Seagate earnings will rebound in fiscal 2024 from a collapse in 2023. They project a 487% earnings jump next fiscal year on 37% revenue growth. The fiscal year ends in June. Seagate stock holds a 94 Composite Rating and 95 RS Rating. This technology best stock reached a two-year-plus high on June 18. It has jumped 20% year to date.
Uber Drives Onto Best Stocks List
Uber Technologies (UBER): The Uber app pioneered a way to provide ride-hailing and ride-sharing services using smartphones. It, too, has seen its markets recover as pandemic challenges have lifted. Meanwhile, Uber called 2023 an “inflection year,” one in which it delivered an annual profit, as both delivery and mobility bookings jumped double digits. Analysts forecast Uber earnings will dip slightly in 2024 and boom 147% in 2025. The fiscal year ends in December. Uber stock shows a 75 Composite Rating and 88 RS Rating. It is up 14% year to date.
Triumph Group (TGI): The Pennsylvania-based company designs, engineers, manufactures and repairs various aerospace and defense systems. It, too, is seeing end markets recover. Triumph swung to an annual loss of six cents per share in fiscal 2024 on worsening sales. Analysts expect Triumph’s earnings to rebound to 49 cents a share this fiscal year and to nearly double, up 97%, the next year. The fiscal year ends in March. Best stock Triumph bears a 67 Composite Rating and 90 RS Rating. It’s down 15% year to date.
Industrial Heavyweights Make The Cut
Coherent (COHR): Another Pennsylvania-based company, Coherent supplies sensors, components and materials used in things like industrial lasers, electric vehicles, and artificial reality (AR) headsets. Analysts project that Coherent earnings per share will slump for a third straight year in fiscal 2024, then return to 86% growth next year. The fiscal year ends in June. Coherent stock holds a 77 Composite Rating and 97 RS Rating. It has rocketed 63% year to date.
GE Vernova (GEV): Spun out as an independent company in April, GE Vernova houses the gas power and wind energy assets of the old General Electric. This once-embattled energy business is also seeing markets recover and joins the best stocks list. Analysts expect GE Vernova to swing to EPS of $3.49 per share in fiscal 2024 from a loss last year. They see GE Vernova earnings jumping 62% a share next year. The fiscal year ends in December. GE Vernova stock flourishes an 88 Composite Rating and 91 RS Rating. It’s up roughly 54% since its April debut.
Teradyne (TER): This company makes automated industrial testing equipment and commercial robots. Teradyne says it is benefiting, in part, from networking demand driven by AI applications. Analysts forecast Teradyne earnings will grow 6% in fiscal 2024 after two straight years of declines around 30%. They expect EPS to vault 56% next year. The fiscal year ends in December. Teradyne stock flourishes an 87 Composite Rating and 96 RS Rating. It’s up 37% year to date.
Universe of S&P 500, S&P 400 and S&P 600 Stocks
A little background on IBD’s process to select the best stocks for magnificent earnings growth:
We began our screening process with the S&P Composite 1500 index, which aggregates the S&P 500, S&P MidCap 400 and S&P SmallCap 600 companies. We chose this index, in part, because it avoids less-liquid, lower-priced and lower-quality names, while efficiently measuring the total U.S. stock market.
Then we limited the stocks on our best stock list to those showing FactSet consensus ratings of overweight or buy, which means analysts expect them to outperform industry peers. Next we further winnowed down the list, setting up a double hurdle: The stocks had to enjoy some of the strongest FactSet earnings growth estimates for the following fiscal year, while also earning high IBD ratings, in terms of their Composite Rating and RS Rating.
The resulting seven best stocks for outsize earnings growth are a quite different set from the Magnificent Seven stocks. At the same time, these stocks are worth watching as much as any of the Mag Seven stocks given their outperformance potential.
To find other ideas for the best stocks to buy or watch, check out IBD Stock Lists and other IBD content.
YOU MAY ALSO LIKE:
Why This IBD Tool Simplifies The Search For Top Stocks
Best Growth Stocks To Buy And Watch
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
Looking For Market Insights? Check Out Our IBD Live Daily Segment
Signup bonus from
