3 stocks with increasing earnings, odds and prices

PIt’s easy to shell out stocks when the market is hitting record highs, isn’t it? Well it always seems to be when you think about it, but things like this pandemic, earnings season, rising inflation and the Fed tend to make things more unpredictable than you could ever have been able to. imagine it.

The best way to improve your chances of success is to find names with several characteristics that are going in the right direction. The increase in profit estimates is great, but it’s even better if broker ratings and price dynamics tend to rise as well. And let’s add a low price-to-sale ratio as well.

the Estimates, valuations and increasing prices the screen looks for it all. Below are three actions that recently passed the test. Make sure you Click here for the full list to see all names.

CarMax KMX

You might think that pandemic-era online shopping standards wouldn’t apply to larger items like automobiles. What are you going to do? Shop and buy your car online, then go get it on the sidewalk like a pizza? Well, as far as CarMax (KMX) is concerned, the answer is YES! It’s just like that … with maybe a little more paperwork.

The company recently announced its sixth consecutive positive surprise, thanks in large part to an omnichannel experience that includes next-day door-to-door delivery, curbside pickup, e-commerce and in-store pickup. Does this sound familiar to you?

KMX operates as a specialist retailer of used and new vehicles. In fact, it is one of the largest used vehicle retailers in the country. It operates under two segments to be presented: CarMax Sales Operations and CAF (CarMax Auto Finance). Shares have risen over 40% so far this year.

The aforementioned omnichannel experience and diverse business model resulted in record profitability and net income in the recently released fiscal first quarter. KMX reported earnings per share of $ 2.63, beating Zacks’ consensus estimate by more than 63% and bringing the four-quarter average surprise to nearly 42%.

Revenue reached $ 7.7 billion in the quarter, easily eclipsing Zacks’ consensus estimate of $ 6.2 billion. It also improved by 138% compared to the previous year. KMX sold over 452,000 units through its combined retail and wholesale channels, an increase of 128% from the previous year. It also purchased more than 341,000 vehicles, 236% more than the previous year.

And the business has not finished. Early last month, KMX acquired Edmunds, the online guide to automotive information and a leader in digital car buying innovations. This move will strengthen its digital capabilities and strengthen its long-term outlook.

Zacks’ consensus estimate for this year (ending February 2022) is now $ 6.43, which is an 11% improvement over the past two months. Expectations for the next fiscal year (ending February 2023) rose 4.6% more modestly over that period to $ 6.85, showing a 6.5% improvement year over year. other.

Image source: Zacks Investment Research

Jabil JBL

We’ll likely hear of a higher outlook this earnings season as the pandemic finally loses its grip. Jabil (JBL) has already set the tone by raising its financial outlook for the remainder of the year while reporting a strong performance in the fiscal third quarter a month ago. Since that announcement, earnings estimates and stocks have risen.

JBL is one of the world’s largest providers of electronic manufacturing services (EMS). More specifically, it provides design, production, product management and electronic aftermarket services to numerous markets, including aerospace, automotive, defense, medical and telecommunications.

The two segments to be featured are Electronic Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS), which account for 51.7% and 48.3% of fiscal 2020 revenue, respectively.

JBL shares have climbed more than 80% in the past 12 months, including nearly 35% this year alone. It has beaten Zacks’ consensus estimate for five straight quarters. Revenue of $ 7.2 billion improved nearly 14% from a year earlier and exceeded Zacks’ consensus estimate by nearly 5%.

JBL has demonstrated continued strength in the end market and strong operational execution. It has seen leading growth in mobility, cloud-connected devices and semi-caps. These factors make the company very confident for the future, which has led to raising its outlook for fiscal 2021 to baseline EPS of $ 5.50 on revenue of $ 29.5 billion.

Analysts have shown their appreciation for the recent report and future potential by upping their earnings estimates. Zacks’ consensus estimate for this year (end of August 2021) is $ 5.54, a 9.7% increase over the past 30 days. Expectations for next year (ending August 2022) have risen 11% over that period to $ 5.95, suggesting a 7.4% year-over-year improvement.

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Image source: Zacks Investment Research

SMART Global Holdings SGH

If you want to capitalize the word “smart” in your name, then you’d better have the numbers to back up such a bold claim. And SMART Global Holdings (SGH) certainly does! The company has beaten Zacks’ consensus estimate for six straight quarters, and shares have risen nearly 90% in the past 12 months.

SGH designs, manufactures and supplies electronic sub-systems to OEMs. It is present in the IT, industry, networks, telecommunications, aerospace and defense markets. The company mainly offers DRAM modules and flash memory products, but also provides supply chain services. Shares have risen over 37% so far this year.

SGH last week reported a profit of $ 1.39 for the third quarter of the fiscal year, exceeding Zacks’ consensus estimate by more than 26%. Sales of $ 437.7 million are up more than 50% from last year. This marks a quarterly revenue record and was the first quarter with Cree LED under the company’s umbrella after the acquisition was completed on March 1.

SGH expects fourth quarter net sales of $ 440 million to $ 480 million with non-GAAP earnings per share of $ 1.60.

Since the report, analysts have raised their expectations for SGH. Zacks’ consensus estimate for this year (end of August 2021) is now $ 4.65, which is an improvement of over 17% over the past 30 days. Estimates for next year (ending August 2022) are up more than 13% during this period to $ 5.76, suggesting healthy year-over-year profit growth from almost 24%.

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Image source: Zacks Investment Research

More news on the stock: it’s bigger than the iPhone!

She could become the mother of all technological revolutions. Apple has only sold one billion iPhones in 10 years, but a new breakthrough is expected to generate over 77 billion devices by 2025, creating a market of $ 1.3 trillion.

Zacks has just published a special report that highlights this rapidly emerging phenomenon and 4 tickers to take advantage of it. If you don’t buy now, you could get started in 2022.

Click here for the 4 professions >>

Click to get this free report

Jabil, Inc. (JBL): Free Stock Analysis Report

CarMax, Inc. (KMX): Free Stock Analysis Report

SMART Global Holdings, Inc. (SGH): Free Share Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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