When looking for stocks to buy, many investors check the most recent earnings. That is because earnings are a sure way of judging a company's financial strength. A recent earnings report for Meta Platforms, for example, led to new highs for Meta stock.
Investors Business Daily's EPS Rating is one metric to use. But when analysts expect profits to increase, it adds conviction to stock picks. That's especially helpful for stocks trading near buy points that hold strong IBD ratings.
In IBD's Stock Screener, the Rising Profit Estimates screen scans for companies in which analysts have been raising profit expectations lately. A few are market leaders and are near buy points.
Meta Stock Jumps Following Earnings
Shares of Meta Platforms are forming a base with a 531.49 buy point, according to IBD MarketSurge. After a record fourth quarter in which the social media company initiated a dividend for the first time, Meta stock gapped to new highs on Feb. 2. But the stock gave back most of those gains after first-quarter results on April 25 were disappointing.
Still, Meta stock analysts expect earnings to rise 49% in 2024 to $23.13 per share and 14% more in 2025 to $26.42.
Internet content leader Alphabet is also near a buy point of 178.77 from a three-weeks-tight formation. Shares gapped up after first-quarter results were announced April 25.
Analysts see earnings growth of 37% in 2024, to $7.84 per share, and $8.82 per share in 2025, which would be 13% higher. Sales and earnings accelerated in the first quarter, with sales rising 15% to $80.5 billion and earnings of $1.74 per share showing 53% growth from the prior year.
Coinbase Holds 50-Day Line In Base
Coinbase is in a cup base with an entry at 283.48. Shares rose but are testing resistance at the 50-day moving average. The base is late stage, which adds some risk.
Analysts see impressive 1,611% growth in earnings in 2024. Sales and earnings have been accelerating over the past three quarters. First-quarter sales rose 112% to $1.6 billion while earnings of $4.40 per share reversed a year-ago loss of 34 cents a share.
Finally, JPMorgan Chase is just below a buy point of 200.94. Sales and earnings have been decelerating over the past four quarters. Shares fell after first-quarter results were released on April 12 but quickly recovered to form the bottom of the base.
Analysts polled by FactSet see earnings declining further, but profit estimates support the price action. For the full year, earnings are expected to decline just 3% to $16.25 per share. For 2025, analysts see a 1% increase to $16.43 per share.
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