Earnings move stocks. Google parent Alphabet rallied Friday after first-quarter earnings were announced, gaining 12% last week while the S&P 500 rose less than 3%. Meanwhile, Nvidia's earnings loom in what could be another big price move.
As more corporate earnings roll in, actual results as well as analysts' estimates for future performance will move stocks. Tracking stocks with rising profit estimates through a ready reckoner like the IBD Stock Screener helps spot these market leaders.
Even after its mammoth third- and fourth-quarter earnings, analysts are reporting rising profit estimates for AI leader Nvidia. Sales have accelerated over the past three quarters while earnings have impressed. Nvidia also has a Composite Rating and EPS Rating of 99 while its Relative Strength Rating of 98 shows the AI chipmaker leads the majority of stocks in the IBD database.
Nvidia In Base With Rising Profit Estimates
Nvidia is also in a base that offers a buy point at 974, according to IBD MarketSurge. Rising profit estimates have analysts seeing earnings of $23.78 per share, or a 84% increase, in the fiscal year ending next January.
Meanwhile, after its record first-quarter results, Alphabet stock is extended, but rising profit estimates makes this one a stock to watch. The company expects operating margins to expand in 2024 by stemming expense growth. Analysts polled by FactSet expect earnings to grow 34% to $7.67 per share in 2024 and 12% to $8.62 per share in 2025.
Robinhood is also forming a base, this one with a buy point of 20.55. And analysts have raised their profits estimates on the company too.
First-quarter earnings are due May 8. Analysts expect 23% growth to $544.4 million in sales with earnings of 11 cents per share after a loss of 57 cents in the prior year's quarter. Analysts expect 56 cents per share, up 192%, in 2024 and 60 cents, or 7% growth, in 2025.
Costco is also in a flat base. The buy point is 787.08. Analysts see profits rising to $16.04 per share, or 9%, in the fiscal year ending in August, and to $17.40 the next fiscal year. Fiscal third-quarter results are due May 30.
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