In the current economic landscape, with resilience and growth driving market optimism, savvy investors have a golden opportunity to supercharge their portfolios. Our hunt for the seven best stocks set for explosive earnings growth next year reveals hidden gems like Artivion (AORT) and Century Aluminum (CENX). While they might not have the star power of Nvidia (NVDA) or Apple (AAPL), these stocks are ready to skyrocket.
These Seven Stocks Are Ready to Explode in Earnings Growth
Micron Technology (MU):
Micron, a titan in memory and storage solutions, serves a multitude of booming markets, including personal computers, mobile, automotive, industrial, and data centers. Positioned to ride the AI wave, analysts forecast Micron’s earnings to soar by an astounding 686% in fiscal 2024, ending in August, on 53% sales growth. Micron stock flaunts a Composite Rating of 95 and an RS Rating of 96. Despite a recent dip, Micron has catapulted 55.4% year to date, stabilizing at its 50-day moving average.
Seagate Technology (STX):
Seagate, a powerhouse in solid-state drives and enterprise data storage systems, reports a market recovery and rising cloud demand. Analysts predict a jaw-dropping 487% earnings per share jump next year on 37% revenue growth, signaling a robust rebound in fiscal 2024, ending in June. Seagate stock shines with a Composite Rating of 93 and an RS Rating of 94, having surged 21.2% year to date.
Artivion (AORT):
Artivion, a pioneer in medical devices and implantable human tissues for cardiac and vascular surgeries, is set for a dramatic turnaround. Analysts foresee a shift to earnings of one cent in fiscal 2024, ending in December, from net losses per share over the past four years. They project Artivion’s EPS to skyrocket 400% to five cents the following year on 10% revenue growth. The stock boasts a Composite Rating of 92 and an RS Rating of 95, up 43.2% year to date.
Sarepta Therapeutics (SRPT):
Sarepta, a leader in treatments for rare disorders, is on a meteoric rise. Analysts forecast earnings per share to swing to $4.16 in fiscal 2024, ending in December, from a sharp loss last year, with an anticipated 198% jump to $12.42 per share as sales surge 62%. Sarepta stock shows a stellar Composite Rating of 97 and an RS Rating of 92, up 54.6% year to date.
Century Aluminum (CENX):
Century Aluminum, a major player in the U.S. and Iceland, is poised for significant growth. Despite recent volatility, analysts project a 67% earnings per share growth in fiscal 2024, ending in December, and an additional 166% jump next year as sales rebound 12%. Century Aluminum stock earns a Composite Rating of 88 and an RS Rating of 98, up a whopping 61% year to date.
Uber Technologies (UBER):
Uber, the trailblazer of ride-hailing via smartphones, is thriving as market conditions improve post-pandemic. Declaring 2023 an “inflection year,” Uber achieved an annual profit with significant growth in delivery and mobility bookings. Analysts forecast a slight dip in earnings per share in fiscal 2024, ending in December, followed by a 147% increase in 2025. Uber stock shows a Composite Rating of 82 and an RS Rating of 91, up 15.9% year to date.
Coherent (COHR):
Coherent, a Pennsylvania-based supplier of sensors, components, and materials for industrial lasers, electric vehicles, and AR headsets, is ready for a comeback. Analysts predict a return to growth in fiscal 2025, with an 85% leap in EPS and 17% sales growth. Coherent stock holds a Composite Rating of 80 and an RS Rating of 97, soaring 74.1% year to date.
The Selection Process: S&P 500, S&P 400, and S&P 600 Stocks
Our process to select the best stocks for explosive earnings growth began with the S&P Composite 1500 index, encompassing the S&P 500, S&P MidCap 400, and S&P SmallCap 600 companies. This index avoids less-liquid, lower-priced, and lower-quality names, efficiently measuring the total U.S. stock market.
The stocks on our list have FactSet consensus ratings of overweight or buy, indicating analysts expect them to outperform industry peers. The final selection had to meet a double hurdle: showing strong FactSet earnings growth estimates for the following fiscal year and earning high ratings in terms of Composite Rating and RS Rating.
Conclusion
As the economy continues to show resilience and growth, these seven stocks—Micron Technology, Seagate Technology, Artivion, Sarepta Therapeutics, Century Aluminum, Uber Technologies, and Coherent—stand out as top picks for investors aiming for explosive earnings growth next year. Each company is positioned for remarkable rebounds, supported by strong market positions and promising future prospects.
By focusing on stocks with robust growth potential and high analyst ratings, investors can strategically position their portfolios for the year ahead. These seven stocks offer a compelling case for consideration as part of a dynamic and forward-looking investment strategy, promising high returns and the potential for significant financial gains.
