7 Stocks to Buy Before Their Earnings Breakout

best stocks
Source: Shutterstock

Finding the best stocks to buy around earnings is difficult. But if you’ve used my Portfolio Grader tool or have kept up with this blog, you know that I put a lot of weight on what analysts are saying about any given stock.

And an effective way to judge how the analyst community feels about what are the best stocks to buy is by tracking their earnings estimates for the quarter.

Upward revisions are an important indicator of a company’s future success. You see, analysts are paid to estimate a company’s earnings outlook and help investors find the best stocks to buy now. If an analyst makes a wrong estimate that ends up costing investors money, that analyst could be out of a job. If a number of Wall Street analysts start to move their forecasts higher, it’s a good bet that the stock will outperform expectations and deliver market-beating returns to investors since positive revisions are never made lightly.

I know that I usually focus on sales and earnings growth when these reports come out. But now that we’re in the swing of third-quarter earnings season, we’re seeing interesting analyst activity regarding some of the hottest names on Wall Street. While the market may have not reacted to these upgrades just yet, I want you to be prepared for what’s to come for the impending earnings season.

To get to the point, here are seven companies that have the analyst community buzzing, and they should be on your radar as well.

Click here to get details on my seven favorite stocks before earnings….

  1. AAOI stock – Over the past 90 days, analysts have revised the consensus EPS estimate for Applied Optoelectronics Inc (NASDAQ:AAOI) up from $0.84 to $1.14, a 35.7% increase. As it stands, analysts are forecasting 612.5% annual earnings growth and 99.5% annual sales growth. Then again, Applied Optoelectronics will likely do even better, given its strong track record of earnings surprises.
  2. AMAT stock – Over the past 90 days, analysts have hiked up their EPS estimates on
    Applied Materials, Inc. (NASDAQ:AMAT) from $0.66 to $0.84, a 27.3% increase. The consensus estimate is calling for 68% annual earnings growth and 30.7% annual sales growth.
  3. AVGO stock – Over the past 30 days, analysts have revised the consensus EPS estimate for Broadcom Ltd (NASDAQ:AVGO) up from $3.68 to $4.03. The current estimate is for 39.4% annual earnings growth and 17.2% annual sales growth.
  4. LRCX stock– Over the past 90 days, the consensus EPS estimate for Lam Research Corporation (NASDAQ:LRCX) has jumped from $2.65 to $3.04, a 14.7% increase. Analysts are calling for 68.9% annual earnings growth and 50% annual sales growth.
  5. MKSI stock – Over the past 90 days, the consensus EPS estimate for MKS Instruments, Inc. (NASDAQ:MKSI) has risen from $1.08 to $1.41, a 30.6% increase. Analysts are forecasting 95.8% annual earnings growth and 43% annual sales growth.
  6. Weibo Corp. (NASDAQ:WB): Over the past 60 days, analysts have revised the consensus EPS estimate up from $0.29 to $0.36, a 24.1% increase. The current estimate is for 125% annual earnings growth and 68% annual sales growth.
  7. Western Digital Corp. (NASDAQ:WDC): Over the past 90 days, the consensus EPS estimate has jumped from $2.11 to $2.78, a 31.8% increase. The current estimate is for 251.9% annual earnings growth and 37.7% annual sales growth.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip GrowthEmerging GrowthUltimate GrowthFamily Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.


Article printed from InvestorPlace Media, https://investorplace.com/2017/07/7-stocks-to-buy-earnings/.

©2021 InvestorPlace Media, LLC