Capital is flowing out of major stocks, but many others remain well-loved among equity analysts. Netflix and DoorDash are two of the seven best stocks where investors can find magnificent profit growth prospects. Most others are in health care.
Netflix Among Best Stocks For Profit Growth
More than 70% of analysts covering Netflix have buy or overweight ratings on the video streaming service. The consensus estimate for 2025 earnings is $24.69, a 25% increase from last year.
The company's quarterly earnings climbed 83%, 48%, 45% and 102% the past four quarters. Netflix will report first-quarter earnings on Thursday after the close. Analysts expect a 4% increase to $5.69 a share.
Netflix stock is down about 3% this year, but is holding above the 200-day moving average. Its EPS Rating is 98 and the Composite Ratings is a highest-possible 99.
Insulin Device Maker Stock Among Best
Insulet's profit growth slowed from 169% to 165%, 45%, 27% and an 18% decline in the past five quarters. Yet, more than 80% of analysts have buy ratings on the stock. The consensus estimate is for 30% EPS growth this year.
Insulet makes Omnipod, a wearable device that delivers insulin to diabetics with the press of a button. This best stock's EPS Rating of 89 is ninth best of 127 stocks in the medical products industry group. Its Composite Rating is 97. The stock is down 4% this year and is testing the 200-day moving average.
DoorDash's performance has been enough to convince 32 analysts to give the stock their highest rating, or 70% of all who cover the company. The food-delivery app started turning profitable last year, which is why its EPS Rating is 80.
Analysts expect this year's earnings to rise 17% to $4.20 a share on a 21% increase in sales to $12.985 billion, according to FactSet. Unlike most stocks, DoorDash is up so far this year — more than 6% — and holding support at its 200-day moving average. The stock appears to be forming a double-bottom base with a 201.03 buy point.
Out of 58 stocks in IBD's internet retail industry group, DoorDash has the second-highest Composite Rating, a 98. Retailers face the risk of a slowing economy, but at least one analyst believes the company's international expansion bodes well.
Eli Lilly A Best Stock In Health Care
Eli Lilly counts on 26 Wall Street analysts who give the drugmaker a top rating, or 90% of all who cover the company. Its EPS growth is expected to surge 78% this year, even after a 106% jump in 2024.
Lilly — one of the major players in the hot market for weight-loss drugs — averaged 426.5% EPS growth the past three quarters, according to IBD Stock Checkup.
Only six companies are in the diversified medical industry group, and best stock Lilly has the second highest EPS Rating (95) in it.
Despite strong fundamentals, the stock is down about 6% this year and about 13% in the past three weeks. Shares fell this week after President Donald Trump said he'll impose major tariffs on pharmaceuticals.
Morgan Stanley cut its price target on Lilly to 1,124 from 1,146 Wednesday, but kept an overweight rating.
Also in health care, Boston Scientific finds that 82% of the 34 analysts covering the company have the highest ratings. The consensus EPS estimate for 2025 is $2.79 a share, an increase of 39% year over year.
It has the highest Composite Rating of 126 stocks in the medical products industry group and fifth best EPS Rating.
Boston Scientific provides minimally invasive technologies for coronary artery disease and aortic valve conditions. It also makes devices for endoscopy and urology, such as kidney stones, and an implantable device for chronic pain, among other products.
The stock is down slightly for the year and testing its 200-day line. It appears to be forming a double-bottom base with a possible entry at 104.35.
Intuitive Surgical
While 57% of the 35 analysts who cover Intuitive Surgical have buy ratings. And while the rest are less bullish on the stock the consensus price target is 626.53, according to FactSet. That's a 28% potential upside if analysts are correct.
The provider of robot-assisted surgical machines has seen its earnings growth accelerate from 23% to 25%, 26% and 38% the past few quarters. Sales growth also accelerated: 11%, 14%, 17%, 25%. That's why Intuitive Surgical is the No. 1 stock in IBD's medical equipment industry group. It owns the best Composite, SMR and EPS Ratings of 65 stocks in the group.
Analysts expect Intuitive Surgical's earnings to rise 9% this year to $8.03 a share.
Bear in mind, Intuitive faces risk from tariffs on Mexico.
The stock is trading below its 50-day and 200-day moving averages. It is still forming a base, although it is a riskier late-stage formation.
Of 18 analysts covering Axon Enterprise, 83% have buy ratings and the rest hold ratings. Analysts expect the maker of Taser stun guns, body cameras and other police equipment will see its fast profit growth slow, however.
Analysts expect EPS to rise less than 3% this year, after gains of 89% and 44% the past two years. Still, Axon has the highest Composite and EPS Ratings of 48 stocks in the security and safety industry group.
The stock is down 7% this year, but holding at its 200-day moving average. It is facing resistance at its 50-day line, however.
BellRing Leads Industry Group
BellRing Brands also has broad consensus as a buy from analysts, with 76% making best-possible recommendations. The company's profit is expected to climb 17% in the fiscal year ending in September.
BellRing, which makes PowerBar, Dymatize and other protein-packed products, has the second best Composite Rating of 42 stocks in the cosmetics and personal care industry group. It also has the third best EPS Rating.
Its three-year EPS growth rate is 29% and three-year sales growth rate is 19%.
Last month, Morgan Stanley initiated coverage of BellRing Brands with an overweight rating and 84 price target. The firm named it a Top Pick.
Of the seven stocks in this list of magnificent earnings, BellRing has the best looking chart. Shares are forming a cuplike base with a handle buy point at 77.12. The relative strength line is making new highs.
But market risk is high, so it's best to keep the stocks on this list on a watchlist for now.
Universe of S&P 500, S&P 400 and S&P 600 Stocks
To select companies for this list, IBD used a combination of FactSet data and IBD ratings.
The screening began with the S&P Composite 1500 index, which aggregates the S&P 500, S&P MidCap 400 and S&P SmallCap 600 companies. This index is a good representation of the U.S. stock market while eliminating less-liquid and lower-quality names.
The next layer of screening flagged companies showing FactSet consensus ratings of overweight or buy, the most bullish views. To further refine the list, we screened for stocks with strong analyst consensus earnings growth estimates for the current fiscal year. In the final cut, we selected stocks with high Composite Rating and Relative Strength Ratings.
The final seven best stocks for outstanding earnings growth and estimates overlap with some Magnificent Seven stocks.
To find other ideas for the best stocks to buy or watch, check out IBD Stock Lists and other IBD content.
