Investing featured highlights AutoZone, Titan Machinery and Charles River Associates

Stocks in this week’s article are AutoZone AZO, Titan Machinery TITN and Charles River Associates CRAI.

3 Best Stocks Displaying Solid Earnings Growth

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

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 critical 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 essentially 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 look 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 the universe of around 7,839 stocks to only three. Here are the stocks:

AutoZone is one of the leading specialty retailers and distributors of automotive replacement parts and accessories in the United States. AutoZone has a Zacks Rank #2 (Buy). AZO’s expected earnings growth rate for the current year is 11.5%.

Titan Machinery represents a diversified mix of agricultural, construction and consumer products dealerships located in the upper Midwest. Titan Machinery has a Zacks Rank #1. TITN’s expected earnings growth rate for the current year is 10.2%.

Charles River Associates is one of the leading global consulting firms. Charles River Associates has a Zacks Rank #2. CRAI’s expected earnings growth rate for the next year is 12.8%.
Charles River Associates (CRAI): Free Stock Analysis Report

AutoZone, Inc. (AZO): Free Stock Analysis Report

Titan Machinery Inc. (TITN): Free Stock Analysis Report

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Zacks Investment Research

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