For investors seeking to maximize portfolio returns, focusing on stocks with impressive earnings growth potential is key. While the well-known tech giants like Nvidia (NVDA) and Apple (AAPL) dominate market headlines, there are several less-publicized stocks showing extraordinary potential for earnings growth in the coming year. Here are seven stocks poised for magnificent earnings growth:
1. Vertex Pharmaceuticals (VRTX)
Vertex Pharmaceuticals is renowned for its innovative treatments for serious diseases, including its breakthrough drug Trikafta for cystic fibrosis. Analysts project Vertex’s earnings per share (EPS) will skyrocket by an astounding 4,027% next year, reaching a record $18.66. This projection follows a substantial decline in EPS in 2024, attributed to a major acquisition and slower top-line growth. Despite recent challenges, Vertex’s stock has gained 15.8% this year and maintains strong ratings, with a Composite Rating of 92 and a Relative Strength (RS) Rating of 86.
2. Sarepta Therapeutics (SRPT)
Sarepta Therapeutics focuses on developing treatments for rare genetic disorders. Analysts anticipate a significant turnaround, with EPS expected to swing to $2.07 in fiscal 2024 from a previous loss. The company’s earnings are forecasted to soar by 453% next year, driven by an 82% increase in sales. Sarepta’s stock has surged 37% this year, boasting a Composite Rating of 90 and an RS Rating of 85.
3. Artivion (AORT)
Artivion specializes in medical devices and implantable human tissues used in cardiac and vascular procedures. Analysts forecast that Artivion will achieve positive EPS of six cents in fiscal 2024, reversing several years of losses. The company’s earnings are expected to jump 243% next year, supported by a 10% increase in revenue. Artivion’s stock has risen 38% this year, with a Composite Rating of 88 and an RS Rating of 94.
4. Krystal Biotech (KRYS)
Krystal Biotech develops genetic therapies for severe and rare diseases. Its first commercial product, Vyjuvek, targets a genetic skin disorder. Analysts predict a remarkable 628% increase in EPS for fiscal 2024, with sales expected to grow significantly. Krystal Biotech’s stock has skyrocketed 51% this year, and it holds a Composite Rating of 89 and an RS Rating of 96.
5. RadNet (RDNT)
RadNet operates diagnostic imaging facilities and is anticipated to experience a substantial earnings rebound in fiscal 2024. The company has raised its financial guidance, with analysts projecting EPS of 31 cents and a 117% increase in earnings next year. RadNet’s stock has surged 77% this year, and it holds impressive ratings with a Composite Rating of 97 and an RS Rating of 97.
6. Tidewater (TDW)
Tidewater provides vessels and services to the offshore oil and gas industry. Analysts forecast that Tidewater’s EPS will more than double in fiscal 2024, with further robust growth projected for the following year. The company’s stock has risen 19% this year and maintains a Composite Rating of 89 and an RS Rating of 79.
7. Seagate Technology (STX)
Seagate Technology specializes in data storage solutions. The company has seen a strong recovery, with EPS expected to jump 431% in fiscal 2024 as revenue rebounds. Analysts predict continued, though slower, growth next year. Seagate’s stock has advanced 15% this year, and it boasts a Composite Rating of 81 and an RS Rating of 88.
Screening Process
These stocks were selected from the S&P Composite 1500 index, which includes the S&P 500, S&P MidCap 400, and S&P SmallCap 600. This index offers a comprehensive view of the U.S. stock market while avoiding less-liquid and lower-quality stocks. The selection process focused on companies with high earnings growth estimates and strong IBD ratings, ensuring they have both robust growth potential and high investor ratings.
These stocks, while not part of the “Magnificent Seven” that often dominate headlines, present significant opportunities for investors looking for impressive earnings growth in the coming year.
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