Rising profits are a welcome sign for investors since those profits can lead quickly to growth. But when a stock that has outperformed Google stock parent Alphabet makes it to the top of the list of stocks with rising profits, it is a double validation.
The IBD Screen Of The Day picked the Rising Profit Estimates screen, which lists 116 stocks. But three stand out as they trade near buy points.
The IBD Stock Screener shows Airbnb in a cup with handle with a buy point of 151.16.
The two others are ServiceNow, which is also in a cup with handle, and Fluor, which is breaking out of a cup with handle.
For all three, the Composite Rating is a perfect 99.
Recent Stock Of The Day Airbnb has been on a tear as it joined the S&P 500 Monday. Shares have also got their thrust from a pickup in travel demand. ABNB has gained a whopping 68% so far this year, more than four times the S&P 500's gain of 16%.
Airbnb Outperforms Google Stock
The stock has outperformed tech giants such as Google stock, which has gained 56% by comparison.
Analysts expect 2023 earnings to rise 75%, according to IBD MarketSmith, and those estimates have been raised.
ServiceNow is another recent Stock Of the Day. Shares are in a cup with handle with a buy point of 607.90, according to IBD MarketSmith pattern recognition tool. Expanding earnings growth has earned the stock an EPS Rating of 99. ServiceNow provides workflow automation tools for businesses. NOW boasts a 47% gain so far this year.
Analysts expect this year's EPS to fall 11%, but they've also raised their profit estimates.
Heavy construction equipment stock Fluor broke out at a buy point of 37.20. Sales and earnings have been accelerating. The three most recent quarters showed EPS gains of 39%, 155% and 407%, according to MarketSmith. The stock has underperformed the S&P 500 so far this year with a 11% gain.
The consensus estimate is for a 151% jump in 2023 EPS, estimates that also have gone up.
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