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Favorable quarterly results from several buy-rated stocks have rolled in this week with now appearing to be an ideal time to invest in their growth.

These three top-rated stocks stand out in particular as earnings estimate revisions are likely to trend higher following their quarterly reports on Tuesday.

 Interactive Brokers (IBKR - Free Report)

Zacks Rank #1 (Strong Buy)

Higher trading volumes helped securities exchange operator Interactive Brokers reach records in quarterly revenue and net interest income of $1.23 billion and $792 million respectively. Despite slightly missing sales estimates of $1.24 billion, Interactive Brokers’ top line expanded 23% from $1 billion in the prior-year quarter.

Plus, Q2 EPS of $1.76 beat expectations by 4% and climbed 33% from $1.32 per share a year ago. Interactive Brokers attributed the record quarter to rising equity markets and the anticipation of lower rates which led to clients feeling more comfortable with taking on risk. Notably, Interactive Brokers' client credit balances hit a peak of $107.1 billion even with trading volumes indicating its users were heavily invested in markets.

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Omnicom Group (OMC - Free Report)

Zacks Rank #2 (Buy)

Advertising giant Omnicom Group had a very promising second quarter pointing to its cash flow which the company says supported its primary use of cash for dividends, acquisitions, and repurchases. Omnicom also highlighted the progress and expansion of its end-to-end generative AI solution and the growth of its e-commerce offerings.

Exceeding top and bottom line expectations, Omnicom posted Q2 sales of $3.85 billion which beat estimates by 1% while EPS of $1.95 came in 4% better than expected. Year over Year, Q2 sales rose 7% with EPS spiking 8% from $1.81 a share in the comparative quarter.  

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Aehr Test Systems (AEHR - Free Report)

Zacks Rank #2 (Buy)

Rounding out the list, Aehr Test Systems is a tech stock that is starting to turn heads after posting EPS of $0.84 for its fiscal fourth quarter which crushed the Zacks Consensus of $0.11 a share. Notably, Aehr’s stock spiked +22% today as the electronics testing and equipment provider ended fiscal 2024 with record revenue of $66.2 million.

Wafer-level tests and burn-in of silicon carbide power semiconductors used in electric vehicles have been a key driver of Aehr’s business and the company sees emerging opportunities in new target markets.

Aehr expects bookings and revenue across a much broader range of customers in FY25 with new markets including quality, reliability, and production tests of artificial intelligence processors, and flash memory devices along with various semiconductor and solar power products between chipsets and processors.

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Bottom Line

Interactive Brokers, Omnicom Group, and Aehr Test Systems are three of the most intriguing stocks to consider following their favorable quarterly results. More importantly, these companies are shaping up to be viable investments for 2024 and beyond.

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