Investors looking to supercharge their portfolios often benefit from a broader stock search. One simple way to do that is to look at year-ahead earnings forecasts. Our picks for the seven best stocks for magnificent earnings growth include Artivion and Vericel — stocks far less obvious than Meta, Amazon, Tesla or other megacaps that dominate the market.
Seven Best Stocks For Magnificent Earnings Growth
Artivion: The company makes medical devices and implantable human tissues used in cardiac and vascular surgical procedures. Analysts highlight the potential for significant growth from upcoming products. They predict Artivion will swing to earnings of one cent a share in 2024, from a net loss per share in each of the prior four years. In the year ahead, they project EPS will leap to 14 cents, a more than 1,500% increase, on 10% revenue growth. Artivion stock holds an IBD Composite Rating of 92 and RS Rating of 91, both out of a best-possible 99. The medical device maker has risen almost 9% so far this year. Shares have rallied 67% in the past year. AORT stock jumped to a new high on Thursday.
Vericel: This biopharmaceutical company makes products for sports medicine and severe burns. Vericel has an uneven profit track record. However, it enjoys a favorable growth outlook, earning VCEL a spot on the best stocks list. Analysts expect a strong fourth quarter to push Vericel to positive earnings in 2024, after three years of earnings declines. They project EPS will leap 273% in the year ahead as sales jump 22%. Vericel stock earns a Composite Rating of 76 and RS Rating of 90. VCEL stock has gained around 3% so far in 2025 and jumped 39% in the last year. Shares are finding support at the 50-day moving average. Trading volume is relatively light.
AI Plays Include GE Vernova, Semtech
GE Vernova: The General Electric energy spinoff is seeing end markets recover. It has guided growth across business segments. William Blair analysts call Vernova stock "a "top pick" for 2025, because artificial intelligence (AI) data centers consume vast amounts of energy. Wall Street expects Vernova earnings to boom 173% per share in the year ahead on 5% sales growth. GE Vernova stock flourishes a Composite Rating of 92 and RS Rating of 98. It has more than tripled from its March 2024 opening price of $115. GEV stock has surged around 21% in this young year. It made a new high on Friday ahead of earnings next week.
Semtech: Semtech supplies high-performance semiconductor products, driving efficiency in AI data centers. Analysts expect Semtech earnings per share to boom 132% in the year ahead, after a strong comeback this fiscal year, ending in January. Semtech saw an earnings collapse in 2023. Sales are seen rising almost 5% this year and jumping 21% next year. Semtech stock holds a Composite Rating of 90 and RS Rating of 98. Semtech stock has advanced 21% year to date and has more than quadrupled in the past year, surging 306%. SMTC stock made a new high on Friday. Analysts at UBS initiated SMTC stock with a buy rating and a price target of $85. They said Semtech's CopperEdge produc has secured a key win in Nvidia's Blackwell platform.
RH, EQT And Geo Group On Best Stocks List
RH: The retailer, formerly known as Restoration Hardware, taps the high-end home furnishings market. It's poised to more than double earnings in the year ahead. Analysts forecast a 127% EPS increase after three years of declines. Revenue growth is seen accelerating to 15% from a 6% gain in the current fiscal year, ending in January. RH gave a bright revenue outlook in December despite a challenging housing market. RH stock shows a Composite Rating of 87 and RS Rating of 94. It carries a 13% gain in 2025 so far and has ripped 75% higher in the past year.
EQT: A vertically integrated natural gas company, EQT focuses on the Appalachian basin. EQT has divested non-operating and midstream assets to focus on the core business plan, analysts say. Further, EQT may benefit from the incoming Trump administration's more favorable stance toward fossil fuels. Analysts expect EQT earnings per share to jump 115% in the year ahead, after a slide in 2024, as sales rebound 36%. EQT stock holds a Composite Rating of 85 and RS Rating of 93. It has zipped 15% higher year to date and has advanced 47% in the past year. EQT stock hit a new high on Thursday.
Geo Group: The company owns and manages correction and detention facilities. Private prison stocks could benefit from tougher immigration enforcement under President-elect Donald Trump, earning GEO Group a place on the best stocks list. Analysts project that Geo's earnings will leap 87% in the year ahead as sales jump 14%. Geo Group's earnings declined in 2023 and are set for another decline in 2024 on anemic sales growth. Geo stock holds a Composite Rating of 86 and RS Rating of 98. It has rallied 26% so far in 2025 and has soared 236% in the last year. Shares rocketed in November on Trump's U.S. election win. Geo stock popped to a new high on Friday.
Universe of S&P 500, S&P 400 and S&P 600 Stocks
A little background on IBD's process to select the best stocks for magnificent earnings growth:
We began our screening process with the S&P Composite 1500 index, which aggregates the S&P 500, S&P MidCap 400 and S&P SmallCap 600 companies. We chose this index, in part, because it avoids less-liquid, lower-priced and lower-quality names, while efficiently measuring the total U.S. stock market.
Then we limited the stocks on our best stock list to those showing FactSet consensus ratings of overweight or buy, which means analysts expect them to outperform industry peers. Next we further winnowed down the list, setting up a double hurdle: The stocks had to enjoy some of the strongest FactSet earnings growth estimates for the following fiscal year, while also earning solid IBD ratings, in terms of their Composite Rating and RS Rating.
The resulting seven best stocks for outsize earnings growth are a quite different set from the Magnificent Seven stocks. At the same time, these stocks are worth watching as much as any of the Mag Seven stocks given their outperformance potential.
To find other ideas for the best stocks to buy or watch, check out IBD Stock Lists and other IBD content.
