Favorable earnings estimate revisions serve as the cornerstone for driving a stock towards prosperity, precisely what the Zacks Rank specializes in. The Zacks Rank hinges on four components tied to earnings estimates to categorize stocks into five distinct groups, stretching from ‘Strong Buy’ to ‘Strong Sell.’ This system empowers individual investors to capitalize on trends in earnings estimate revisions and reap the benefits that institutional investors revel in.
Stride LRN: A Symphony of Profitability
Stride stands tall as a premier purveyor of K-12 education for students, schools, and districts, offering career learning services through middle and high school curricula. Gleaming with a Zacks Rank #1 (Strong Buy), the stock basks in heightened earnings expectations across the spectrum.
Image Source: Zacks Investment Research
The stock has ascended, fueled by robust quarterly results, with LRN shares surging 16% in value in 2024 compared to the S&P 500’s 12% gain. Impressively, the company has outstripped the Zacks Consensus EPS estimate by an average of 42% over its previous four releases.
Operational efficiencies have paved the way for the company to relish notable margin expansion, significantly enhancing its profitability. It’s important to note that the illustrated chart is based on a trailing twelve-month basis.
Interactive Brokers IBKR: Scaling New Heights with a 50% YTD Surge
IBKR shares have exhibited remarkable strength this year, notching a +50% surge compared to the S&P 500’s commendable +12% uptick. The company’s latest quarterly results have infused a wave of positivity post-earnings, surpassing both earnings and revenue expectations.
Analysts have raised their earnings forecasts across the board, propelling the stock to a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The recent results marked a shift from a series of mixed earnings reports, with both earnings and revenue stepping up by 21% and 25%, respectively. IBKR’s revenue growth has remained robust, consistently registering double-digit percentage year-over-year sales growth rates in each of its past seven periods.
Below is a visual of the company’s revenue on a quarterly basis.
Haemonetics HAE: Orchestrating Continuous Sales Growth
Haemonetics extends blood management solutions to a diverse clientele, spanning blood and plasma collectors, hospitals, and healthcare providers worldwide. Analysts have heightened their projections, propelling the stock to a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Similar to IBKR, the company has relished substantial revenue growth, sustaining double-digit percentage year-over-year sales growth in nine of its most recent ten periods. The growth trajectory remains promising, with consensus anticipations for the ongoing fiscal year hinting at a 15% rise in earnings on a 7% surge in sales.
Image Source: Zacks Investment Research
The Verdict
Staying attuned to the Zacks Rank consistently proves fruitful, as positive revisions in earnings estimates furnish the necessary impetus for stocks to soar. The trio of stocks under focus – Stride LRN, Interactive Brokers IBKR, and Haemonetics HAE – presently shine bright with a Zacks Rank #1 (Strong Buy), signifying a tide of upward trending earnings estimate revisions.
For more insights on leveraging this tried-and-true system for market-beating gains, visit Zacks Rank Education.
