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Growth Stocks Earnings Watch: Profit Estimates Rise For These Three Leaders

Today’s IBD Screen Of The Day focuses on growth stocks with profit estimates that analysts have been increasing. It’s one of several powerful screens found in the IBD Stock Screener. Three companies have earnings announcements within the next few weeks.




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Equifax (EFX), Entegris (ENTG) and Skyline Champion (SKY) are getting higher profit estimates and have traits of quality stocks.

Analyzing Equifax Stock

Equifax stock is one to watch because it reports earnings on Wednesday. Not only is the stock trading near a buy zone, but it also is expected to report another quarter of rising profits.

Equifax recently broke out of a new flat base, according to MarketSmith analysis, with an ideal buy point of 242.23. The base formed entirely above its 50-day moving average, which is a positive sign. The stock rallied Tuesday and is now extended from the buy range. Wait for it to fall into the 5% buy zone, which tops out at 254.34.

The relative strength line on Equifax has been moving higher since mid-June and is trading around new highs amid the bullish price action.

The stock has gained as much as 33% so far in 2021. The company maintains a perfect IBD Composite Rating of 99. Equifax’s year-over-year EPS has grown by an average 31% over the past three quarters. This exceeds IBD’s CAN SLIM requirements for top growth stocks. Earnings are expected to increase again but at a slower rate of 7% for the second quarter.

Entegris Stock

Semiconductor equipment manufacturer Entegris has risen 22% year to date. Shares had been trading above the 50-day line since dipping below this area in early May. But this week, the semiconductor firm briefly dipped below support at this key moving average, as it formed a new handle buy point of 124.51. Shares remain just 6% away from the buy point.

The relative strength line is looking decent on a weekly chart but has been moving mostly sideways since early May. In the three most recent quarters, year-over-year earnings rose an average of 30% per quarter. The company is expected to show an EPS increase of 32% for the June-ending quarter.

Entegris is expected to report earnings before the market opens on July 27.

Skyline Champion Stock

Skyline Champion, a mobile home manufacturer, is extended from the buy range of its most recent 48.02 buy point of a cup with handle. It broke out May 25 after a better-than-expected earnings report. But the stock is in a new buy area after finding support at the 10-week line. The new buy zone goes from 51.18 to 56.30.

The RS line has been trending higher this week, as shares have already risen nearly 8% since Monday.

Skyline stock has a solid Composite Rating of 93 out of 99. The stock has shown earnings strength over the past few quarters with year-over-year growth in the double and triple digits. According to IBD data, the company is expected to show EPS growth of 123% to 49 cents a share for its June quarter. That’s well above the 25% minimum we like to see for CAN SLIM stocks.

Skyline said last week it will announce quarterly results after the market closes on Aug. 3.

Skyline Champion holds seven straight quarters of increasing mutual fund ownership. Doing well in this metric is key for top growth stocks.

Follow Fox on Twitter at @foxonstocks for more analysis other growth stocks.



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