Favorable earnings estimate revisions are essential for a stock to surge, and this is precisely where the Zacks Rank shines its guiding light.
The Zacks Rank harnesses four factors linked to earnings estimates to categorize stocks into five distinct groups, stretching from ‘Strong Buy’ to ‘Strong Sell.’ Notably, it empowers individual investors to seize opportunities stemming from trends in earnings estimate revisions and profit from the acumen of institutional investors.
Stride Basks in the Glow of Enhanced Profitability
Stride stands tall as a premier provider of K-12 education solutions for students, schools, and districts, offering career learning services through middle and high school curricula. With a Zacks Rank #1 (Strong Buy), the stock exhibits elevated earnings expectations across the board.
Powered by robust quarterly results, LRN shares have soared by 16% year-to-date, outshining the S&P 500’s 12% ascent in 2024. Notably, the company has surpassed the Zacks Consensus EPS estimate by an impressive 42% on average in its last four releases.
The company’s operational efficiencies have triggered a significant expansion in margins, propelling profitability to new heights.
Interactive Brokers Witness Shares Ascending +50% YTD
IBKR shares have demonstrated remarkable vigor this year, surging +50% in contrast to the S&P 500’s commendable +12% increase. Following a stellar set of quarterly outcomes, which surpassed both earnings and revenue forecasts, analysts have uplifted their earnings projections across the board, landing the stock a Zacks Rank #1 (Strong Buy).
After breaking a streak of mixed earnings results, IBKR witnessed a 21% earnings and 25% revenue growth. The company’s revenue trajectory has remained robust, with double-digit year-over-year sales growth for seven consecutive periods, as depicted in the chart below.
Haemonetics’ Sales Surge with Ceaseless Momentum
Haemonetics extends cutting-edge blood management solutions to a diverse clientele comprised of blood and plasma collectors, hospitals, and healthcare providers worldwide. Analysts have revised their expectations higher, elevating the stock to a Zacks Rank #1 (Strong Buy).
Like IKBR, Haemonetics has enjoyed formidable revenue growth, boasting double-digit year-over-year sales upsurge in nine of its last ten periods. The growth trajectory remains robust, with consensus projections for the current fiscal year indicating a 15% earnings expansion on 7% higher sales.
Final Thoughts
Adhering to the Zacks Rank can consistently lead to market-beating gains as positive earnings estimate revisions pave the way for stocks to ascend. As it stands, all three companies – Stride LRN, Interactive Brokers IBKR, and Haemonetics HAE – currently hold a Zacks Rank #1 (Strong Buy), reflecting the upward trajectory of earnings estimate revisions.