Profits are always nice to have, especially in stocks. And Netflix, GE Aerospace and Abercrombe & Fitch are all stocks with rising profit estimates as they also hover near buy points.
GE Aerospace is in a buy zone from a three-weeks-tight pattern with a buy point of 190.88. That is strong action as the company heads into third-quarter earnings on Oct. 22.
Sales growth slowed to 4% in the second quarter from 14% in the first quarter, but earnings have picked up. After rising 47% in the first quarter, earnings accelerated by 62% in the second. The company has been reporting results as a pure aerospace play since it spun off its energy business, GE Vernova, in April.
Analysts polled by FactSet expect a sharp drop in sales with GE Aerospace's report next week. But that is partly because they are comparing it with its pre-spinoff results last year. Still, they expect GE's more streamlined operations to benefit from an acceleration in earnings growth.
They expect earnings of $1.14 per share, showing 74% growth. For the full year, analysts see profit rising 30%. In 2025, Wall Street calls for a 23% increase.
Netflix Stock In Buy Zone
Netflix is also in a buy zone from a cup-base buy point of 697.49. After breaking out, the stock traded tightly within the buy zone, which offers a higher entry of 725.26.
Third-quarter results are due Thursday. Analysts expect sales and earnings growth to taper off from the second quarter but are bullish on the content-streaming giant's profits for the year.
In 2024, they expect earnings to rise 59% to $19.16 a share. For 2025, earnings estimates of $23.06 per share represent a 20% rise in profit for Netflix stock.
Abercrombie, Meta Show Profits Rising
Abercrombie & Fitch fell sharply after its second-quarter report showed a drastic slowdown in earnings growth. But the stock found support at the 200-day moving average and is attempting to build a base.
Rising profit estimates for 2024 and 2025 are helping the stock as well. Analysts see profit rising 65% in 2025 and 3% in 2026.
Meanwhile, Meta also has its box for rising profit estimates checked off. FactSet analysts see earnings rising 37% in 2024 and 14% in 2025. But the stock is extended, so it's better to wait for a new buy point.
To pick companies like Netflix and others that will benefit from strong earnings forecasts, you can go to the Investors' Business Daily's stock screener and stocks with rising profit estimates. The data is also available on IBD MarketSurge's daily and weekly charts.
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