3 Top-Rated Stocks to Consider as Earnings Approach
Rounding out this week’s earnings lineup several top-rated Zacks stocks will be releasing their quarterly results on Friday, July 21.
These particular stocks belong to strong business industries and here is a look at why they are worthy of investors’ consideration at the moment.
World Acceptance (WRLD)
Starting out of the Zacks Finance sector is World Acceptance which stock currently covets a Zacks Rank #1 (Strong Buy). Plus, World Acceptance’s Zacks Financial-Consumer Loans Industry is in the top 10% of over 250 Zacks industries.
World Acceptance is engaged in the small-loan consumer finance business and there is much optimism about the company’s fiscal first-quarter earnings tomorrow. Anticipation is high after World Acceptance most recently blasted its Q4 earnings expectations by 32% in May with EPS at $1.97 compared to estimates of $1.49 a share.
This sent shares of WRLD soaring which have now skyrocketed +109% this year to largely outperform the broader indexes and the Finance-Consumer Loans Markets’ +29%.
Although first-quarter earnings are expected to be down -2% from a year ago at $1.13 per share, there would be little surprise if World Acceptance was able to surpass estimates again. World Acceptance should continue to thrive from its vibrant business environment as a provider of short-term loans, medium-term larger loans, credit insurance, and ancillary products.
Furthermore, annual earnings are now forecasted to skyrocket 213% at $11.26 per share compared to EPS of $3.60 in 2022. World Acceptance stock is definitely one to watch with shares still trading reasonably at $136 and 12.4X forward earnings.
Despite this year’s very impressive rally World Acceptance stock still trades attractively beneath the S&P 500’s 21.4X and closer to its industry average of 7.9X. Even better, shares of WRLD still trade well below their decade-long high of 30.2X and roughly on par with the median of 11.8X.
AutoNation (AN)
Sporting a Zacks Rank #2 (Buy), AutoNation is another stock investors may want to consider at the moment with its Automotive-Retail and Whole Sales Industry in Zacks top 16%.
In correlation with its favorable industry outlook, AutoNation is naturally expected to reap the rewards as the largest automotive retailer in the United States. Already coming off of a record year that saw earnings at $24.57 per share, AutoNation’s bottom line is expected to dip-10% in fiscal 2023 but remains robust.
Plus, earnings estimate revisions have continued to rise leading up to AutoNation’s second-quarter report. Over the last quarter, earnings estimates have now risen 5% for Q2 with annual EPS estimates rising 5% for FY23 and up 3% for FY24.
More intriguing, the Zacks Expected Surprise Prediction (ESP) indicates AutoNation could top its Q2 earnings expectations with the Most Accurate Estimate having EPS at $6.01 and 3% above the Zacks Consensus of $5.80 per share.
The cherry on top is that AutoNation stock has soared 65% YTD but still trades very attractively at $176 a share and just 8.4X forward earnings. This is well below the benchmark’s forward looking P/E and near its industry average of 7.9X.
Roper Technologies (ROP)
Lastly, investors may want to consider Roper Technologies stock which currently sports a Zacks Rank #2 (Buy) with its Computers-IT Services Industry in Zacks top 43%.
Roper is a tech stock that could still have an abundance of upside this year as a provider of engineered products, software, and solutions to a variety of end markets. Shares of ROP currently trade at $481 and are up a respectable +11% YTD with rising earnings estimates offering furhter support.
Solid quarterly growth is expected with Roper’s Q2 earnings projected to be up 1% YoY at $4.00 a share and sales forecasted to climb 14% to $1.50 billion. What is most intriguing is that annual earnings are now anticipated to jump 14% this year at $16.25 per share compared to EPS of $14.28 in 2022.
Better still, FY24 earnings are projected to rise another 6%. Fiscal 2024 EPS projections of $17.33 per share would represent 36% growth over the last five years with earnings at $12.74 a share in 2020.
Bottom Line
World Acceptance, AutoNation, and Roper Technologies stock look very attractive ahead of their quarterly reports tomorrow. Now appears to be a good time to buy as these stocks are poised to keep rising as we progress through 2023.
World Acceptance Corporation (WRLD): Free Stock Analysis Report
Roper Technologies, Inc. (ROP): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
This article originally appeared on Zacks
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Source: Read Full Article