Now that earnings season has arrived once again, we’re all going to be talking about growth (or lack thereof) in a time of trade and economic uncertainty.
Well, maybe we can take some of that uncertainty out of the equation for you. Stocks with rising earnings estimates and a history of outperformance are good bets to keep moving in the right direction.
Below are three companies that have no plans of slowing down.
GoPro, Inc. (GPRO)
It’s going to take a lot for GoPro, Inc. (GPRO) to return to its heyday price of more than $85 from late 2014.
Fortunately, taking action has never been a problem for this company, which is known for its wearable cameras that adrenaline junkies use in various forms of dangerous activities from sky diving to actual diving.
And then some folks just use them to track the progress of the plants in their garden.
Either way, the stock has already gained more than 30% in 2019 as it benefits from high demand for its flagship HERO7 cameras and works to reduce costs moving forward.
GPRO has beaten the Zacks Consensus Estimate for four straight quarters and amassed an average surprise of more than 28%. Most recently, it lost 7 cents per share in its first quarter, but that was more than 22% narrower than our expectations for a 9-cent loss.
It was also substantially better than last year’s loss of 34 cents.
Revenues jumped 20% from last year to $243 million and grew in all regions year over year.
GPRO has a lot of plans to continue improving, including enhancing its Plus subscription service, expanding its footprint into emerging markets like India, and making a bigger splash in the growing virtual reality market.
The company plans to do all this and more while keeping the business streamlined and watching its costs.
Analysts like what they see so far. Earnings estimates haven’t moved much in the past couple of months but show a big improvement right after its last earnings report.
The Zacks Consensus Estimate for this year is up nearly 41% over the past three months to 38 cents.
Expectations for next year have soared nearly 47% in that time to 47 cents, which suggests year-over-year improvement of more than 23%.
Lattice Semiconductor Corporation (LSCC)
Technically-speaking, Lattice Semiconductor Corporation (LSCC) designs, develops and markets high performance programmable logic devices and related development system software.
For the purpose of this article though, LSCC is a chip name that has soared approximately 130% this year with more on the way.
In late May, the company reported its sixth positive surprise in the past seven quarters. Earnings of 11 cents per share beat the Zacks Consensus Estimate by more than 22%, while also more than doubling last year’s profit of 5 cents.
The past four quarters now have an average beat of just over 33%.
LSCC calls itself ‘the low power programmable leader’ and its been getting a lot of praise for its Lattice sensAI stack, which has received a number of industry awards in the past several weeks.
The stock also received enough rising earnings estimates to become a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for this year is 49 cents at the moment, which is up 14% from three months ago. Expectations for next year of 64 cents improved 10.3% in that time.
Most importantly, analysts expect 2020 earnings to jump more than 30% from 2019.
Expectations have been stagnant for the past two months, but should be on the move again when LSCC reports on July 30.
Enphase Energy (ENPH)
The solar space is in the Top 15% of the Zacks Industry Rank with a surge of more than 80% year to date!
That’s pretty impressive and it shows the area’s potential as alternative energies become more available to the public.
But a 312% improvement is even more impressive! And that’s what Enphase Energy (ENPH) has accomplished so far in 2019.
This Zacks Rank #1 (Strong Buy) is a global energy technology company and the leading supplier of solar microinverters, which are devices that convert direct current from a solar module to alternating current that can be used in your house.
In its first quarter report from late April, revenues surged 43% from last year to $100.2 million. It was also up 9% sequentially. The company shipped 976,410 microinverters in the quarter, which helped it overcome the usual first-quarter sluggishness for solar companies.
ENPH expects revenue between $115 million and $125 million in the second quarter, which is scheduled for release on July 30.
The past seven quarters have seen six beats on the bottom line. The past four quarters have beaten by more than 31% on average.
Most recently, earnings per share of 8 cents crushed the Zacks Consensus Estimate by 60%.
Over the past three months, earnings estimates for this year have gained 44% to 52 cents, while next year improved nearly 43%.
The estimate for 2020 suggests year-over-year improvement of nearly 35%.
These stocks were found using the Zacks Rank #1 (Strong Buy) Growth Stocks premium screen, which search for Zacks Rank #1 (Strong Buy) stocks with EPS growth of more than 20% last year with a repeat expected this year. Big growth: both past and present.
Click here to take a look at the parameters of this screen and the stocks that have passed the test.
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Lattice Semiconductor Corporation (LSCC): Free Stock Analysis Report
GoPro, Inc. (GPRO): Free Stock Analysis Report
Enphase Energy, Inc. (ENPH): Free Stock Analysis Report
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