Chicago, IL – November 18, 2024 – Stocks in this week’s article are NVIDIA Corp. NVDA, Qualcomm Inc. QCOM and Arista Networks, Inc. ANET.
NVIDIA, Qualcomm and 1 Other Stock with Solid Earnings Growth
The S&P 500 recently topped the 6000 mark, banking on the post-election rally. The possibility of reducing corporate taxes and deregulation under President-elect Donald Trump’s administration buoyed investors’ sentiment. October’s in-line inflation data also raised hopes of further interest rate cuts by the Federal Reserve, a boon for the stock market.
Therefore, it’s prudent for investors to place their bets on the S&P 500 stocks that exhibit strong earnings growth and can take advantage of the overall bullish trend. After all, if the company doesn’t make money, it won’t survive. Earnings are also considered the most important variable influencing share prices. But, expectations of earnings play a striking role.
To that end, NVIDIA Corp., Qualcomm Inc. and Arista Networks, Inc. are currently exhibiting superb earnings growth.
Earnings Estimates & Share Price Movements
Frequently, we have seen the stock price decline 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 aid analysts in evaluating cash flow to determine a firm’s fair value.
Thus, investors should watch for stocks primed for significant growth. Hence, investors need to buy stocks with historical earnings growth and are seeing a rise in quarterly and annual earnings estimates.
We use that basis to determine our stock selections using Zack’s Research Wizard Tool.
Here are the top three stocks:
NVIDIA
NVIDIA Corporation leads in visual computing technologies and invented the graphic processing unit or GPU (read more: Buy Profitable S&P 500 Stocks as the Index Tops 6000: NVIDIA & 2 More).
The company’s expected earnings growth rate for the current year is 116.9%. NVIDIA currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Qualcomm
Qualcomm is a fabless semiconductor company. QTI, a division of Qualcomm, designs high-performance chip designs for various tech applications.
The company’s expected earnings growth rate for the current year is 8.7%. QUALCOMM currently has a Zacks Rank #2.
Arista Networks
Arista Networks provides cloud networking for data centers and computing environments.
The company’s expected earnings growth rate for the current year is 24.8%. Arista Networks currently has a Zacks Rank #2.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2370665/nvidia-qcom-1-other-sp-500-stock-show-solid-earnings-growth
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