With Q2 earnings season just around the corner, here are 18 of today’s top growth stocks expecting up to 2,900% earnings growth in their next quarterly report. United Kingdom-based Buford Capital (BUR) leads the list, while Wall Street forecasts 877% EPS growth for Copa (CPA) airline as the travel industry continues its rebound. ServiceNow (NOW) — in big demand among the best mutual funds — has consensus estimates calling for 529% earnings growth for the quarter and 630% for the year.
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As it explores a breakout, database software play Splunk (SPLK) also makes this stock screen. Analysts expect 406% earnings growth.
Enterprise software firm DigitalOcean (DOCN), which hails from the Class of 2021 IPOs, also found a spot on the list as it tries to swim back toward the price high following a breakout earlier this month.
MercadoLibre (MELI) — the Amazon of Latin America — earns a mention as it looks to get back above its 10-week moving average.
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Stock Screen Identifying Today’s Fastest Growing Stocks
To make this stock screen of today’s fastest-growing companies, each growth stock must have a 95 or higher Composite Rating, indicating a passing grade in Stock Checkup. A 95 Composite Rating means each stock is outperforming at least 95% of all stocks in terms of the most important stock-picking traits.
Each of these top growth stocks must also have an EPS Rating and RS Rating above 80 to show strong fundamental and technical strength. To qualify, these fastest-growing stocks must also sport an A SMR Rating, which tracks sales growth, annual pretax profit margins and return on equity.
To avoid thinly traded penny stocks, the screen only includes the fastest-growing stocks that trade at least 400,000 shares a day on average and have a share price of at least $12.
Growth Stocks To Buy And Watch As Q2 Reports Loom
Created in MarketSmith, this stock screen highlights top growth stocks expecting 78% to 2,900% EPS growth in their upcoming quarterly report.
| Company | Symbol | EPS Est Cur Qtr % | EPS Est Cur Yr % | Comp Rating | EPS Rating | RS Rating | Ind Group RS | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|---|---|
| Burford Capital | BUR | 2,900 | 76 | 98 | 82 | 96 | B- | A | B+ |
| Copa | CPA | 877 | 81 | 99 | 83 | 93 | A+ | A | A- |
| Vista Energy | VIST | 531 | 59 | 97 | 83 | 98 | D- | A | A |
| ServiceNow | NOW | 529 | 630 | 99 | 99 | 89 | A | A | B |
| Teekay Tankers | TNK | 444 | 116 | 97 | 80 | 87 | B- | A | B- |
| Splunk | SPLK | 406 | 20 | 96 | 81 | 81 | A+ | A | B- |
| Frontline | FRO | 217 | 53 | 97 | 80 | 89 | B- | A | B+ |
| Extreme Networks | EXTR | 208 | 66 | 99 | 91 | 97 | C | A | A+ |
| Wabash National | WNC | 188 | 87 | 95 | 82 | 94 | B- | A | B- |
| Dorian LPG | LPG | 183 | -1 | 97 | 97 | 96 | B- | A | B |
| First Citizens BancShares | FCNCA | 169 | 94 | 99 | 98 | 98 | B+ | A | B+ |
| Vitesse Energy | VTS | 162 | -98 | 95 | 81 | 95 | B- | A | B |
| AAON | AAON | 119 | 49 | 99 | 98 | 94 | A | A | B |
| DigitalOcean | DOCN | 106 | 94 | 98 | 81 | 84 | A | A | B |
| North American Construction | NOA | 103 | 4 | 96 | 98 | 95 | D+ | A | B+ |
| Banco Latinamer | BLX | 94 | — | 99 | 88 | 93 | B+ | A | B+ |
| International Seaways | INSW | 81 | 34 | 96 | 80 | 86 | B- | A | C+ |
| MercadoLibre | MELI | 78 | 86 | 95 | 81 | 90 | B+ | A | D- |
3 Key Rules For How To Buy Today’s Fastest-Growing Stocks
Keep in mind that earnings growth is just one factor to track when looking for the best stocks to buy and watch. In addition, make sure to follow these three key rules for how to buy stocks.
While this crop of today’s top-rated growth stocks shows strong earnings estimates for Q2, it doesn’t necessarily mean they’ll meet or beat Wall Street expectations or shoot higher if they do. Be sure to have and follow sound buy rules and sell rules.
Following a simple three-step routine helps you stay profitable and protected, and ready to take advantage of today’s fastest-growing stocks when opportunities arise.
Track Stocks Set To Report With The IBD Earnings Calendar
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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