Investors often focus on increasing earnings when looking for winning stocks. The IBD Rising Profit Estimates screen, which is today's Screen Of The Day, has 87 names, including defense stock Howmet Aerospace and two others worth highlighting.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
Howmet Aerospace Stock Takes Break After Doubling
Howmet Aerospace stock gained 1.9% Monday and is in a late-stage flat base with a 120.71 buy point.
The stock has been hugging its 10-week moving average within the base. Shares, which hold a 94 out of 99 IBD Relative Strength Rating, doubled in 2024.
The consensus 2024 profit estimate increased to a healthy 45% increase and for 2025, estimates are for a 19% increase. Despite a mixed third quarter delivered Nov. 6 — better-than-expected adjusted earnings but sales below views — the stock jumped to new highs.
Howmet's fourth-quarter earnings growth is expected to taper to 35% following a hearty average 53% over the prior two quarters. Estimates show profit rising 24% in Q1, then 16% and 15% over the following two quarters.
The company makes parts for aircraft engines, spacecraft and trucks. Howmet ranks No. 1 out of 70 stocks in the aerospace and defense industry group, which holds the No. 38 spot out of the 197 industry groups tracked by Investor's Business Daily.
REV Group Sits In Buy Zone, Near A High
REV Group stock fell 1.5% Monday. Shares are in a 5% buy zone up to 33.44 from a 31.85 buy point.
Shares popped nearly 14% in heavy volume after the company topped fiscal fourth-quarter earnings forecasts but missed revenue projections on Dec. 11. REV Group gave fiscal 2025 adjusted profit guidance that topped views. But its net sales outlook lagged estimates. It also approved a $250 million share buyback program.
Profit estimates for the fiscal year ending in October show a 43% increase with a 32% rise the next fiscal year. Analysts expect current-quarter earnings to rise 6%, and then 46% and 36% the following two quarters. REV Group's sales have declined or been flat over the last four quarters. Estimates are for more declines in the next two reports, but returning to growth the next quarter.
REV Group makes fire trucks, ambulances, street maintenance vehicles and other specialty vehicles. It also owns several RV brands.
ExlService Clears Trendline
ExlService Holdings, which climbed 2.5% Monday, is in a flat base with a 47.37 buy point. It cleared a trendline entry around 45.50, too.
The analytics stock reclaimed its 10-week moving average, and the relative strength line is at new highs.
Shares have climbed 17% since the company topped third-quarter adjusted earnings and sales estimated on Oct. 29. It also raised its full-year 2024 sales guidance.
Newest full-year 2024 profit projections show a 14% increase, plus a 16% boost in 2025. ExlService has been a steady profit grower as seen in its 6 out of 99 Earnings Stability factor.
Its sales growth has also been fairly consistent, with an average increase of around 12% over the last six quarters. Analysts expect more of the same the next four quarters.
ExlService Holdings provides data analytic for multiple industries. It uses artificial intelligence powered by Nvidia's AI platform in its data analytics used by the insurance, health care, financial services and media industries.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
