Five Stocks Expected To Grow Earnings By Over 200% This Year

The year 2015 has been full of ups and downs for the U.S. economy. Though the economy is said to be growing at a moderate pace, the latest robust consumer spending data as well as employment report turned out to be the positives, sparking the chances of an interest rate hike decision in this year’s final Federal Reserve meeting in December.

While the next month is anticipated to mark the end of the Fed’s accommodative policy, the move will come slowly and steadily without shocking the system as hinted by Fed Chair Janet Yellen on Monday.

"We all hope and expect that the economy will continue to expand, that the jobs market will continue to make progress, and that inflation will move toward our 2 percent price stability objective," Yellen wrote. "If that is the case, my colleagues and I have indicated it will be appropriate to begin to normalize interest rates."

Though expectations of a strong pick up in fourth-quarter economic growth are bleak, investing in companies that are expected to significantly grow their earnings can help us avert the drag of a strengthening dollar, lower business spending as well as slower U.S. gross domestic product growth.

Along with strong earnings growth prospects, investing in stocks that have already proven their worth by successfully beating the market so far this year could be a good idea. Though some investors may be wary of purchasing such high-priced stocks, high valuations and rise in share prices do not always mean that the stock has reached its ultimate potential.

A solid price increase implies robust demand for the stock, which is often explained either by a good fundamental performance or some positive news. And these may keep boosting the stock price. A company with strong fundamentals and future prospective growth can easily carry the momentum forward.

5 Stocks to Bet on

Founded in 1994, Washington-based Amazon.com Inc. (AMZN - Analyst Report) is a well-known market leader, which operates as an online retailer in North America and internationally. This Zacks Rank #2 (Buy) company seeks to be the world's most customer-centric platform, where customers can find and discover anything they may want to buy online.

Compared with the S&P 500 index’s year-to-date return of 1.3%, Amazon’s investors were rewarded with more than a two-fold increase so far this year justifying its strong international expansion along with robust performance of its cloud services arm. Further, the company’s projected EPS growth (F1/F0) of 447.6% signals continuation of an uptrend in the price chart in the near term.

Nevada-based Boyd Gaming Corp. (BYD - Snapshot Report) is a leading diversified owner and operator of 22 gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi and New Jersey. This Zacks Rank #1 (Strong Buy) organization operates as a multi-jurisdictional gaming company in five segments: Las Vegas, Downtown Las Vegas, Midwest and South, Peninsula and Borgata.

Shares of Boyd Gaming returned over 56% year to date. This company with continued growth in revenue and consumers remains a good investment indicated by its projected EPS growth (F1/F0) of 7,425.0%. Notably, the company increased its EBITDA guidance for 2015 for the third consecutive quarter and expects it in the range of $610.0 million to $620.0 million.

Headquartered in Michigan, Flagstar Bancorp Inc. (FBC - Snapshot Report) operates as a savings and loan holding company for Flagstar Bank, FSB, which offers financial products and services to individuals and businesses in the U.S. Through its retail banking centers and e-commerce distribution channels, Flagstar attracts deposits from the general public. The institution utilizes these deposits, along with other funds garnered from the secondary market, to originate or acquire loans on a nationwide basis.

Despite a nearly 54% year-to-date rise in the share price, Flagstar still offers a good entry point into this Zacks Rank #1 company, which has a projected EPS growth (F1/F0) of 385.3%. The company’s growth in total revenue along with reduced expenses results in positive operating leverage.

Based in Utah, SkyWest Inc. (SKYW - Snapshot Report), through its wholly-owned subsidiary, SkyWest Airlines, Inc., operates one of the larger regional airlines in the U.S. It provides scheduled passenger and air freight services with approximately 3,500 total daily departures to various destinations in the U.S., Canada, Mexico and the Caribbean.

This Zacks Rank #1 company has rewarded more than 60% year to date to its investors and remains well positioned on the back of consistent revenue growth. While the company reflects continued progress in the optimization of fleet and flying contract mix, it looks forward to operating the E175 aircraft with three of its major partners by mid-2016 to further enhance the operating performance. This validates the projected EPS growth (F1/F0) of 2,278.1%.

Crown Castle International Corp. (CCI - Analyst Report), based in Texas, owns, operates and leases shared wireless infrastructure primarily in the U.S. and Australia. The company provides towers and other structures, such as rooftops; and distributed antenna systems, small cells. It provides access, including space or capacity to its towers, small cells and third party land interests via long-term contracts in various forms, including license, sublease, and lease agreements.

Shares of Crown Castle returned more than 11% year to date. This Zacks Rank #2 company remains a good investment reflected by its projected EPS growth (F1/F0) of 360.4%. As network capacity and speed increases, services such as mobile video, the connected car, and more broadly the Internet of Things, will create demand for the company’s infrastructure. 

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