When I am on the hunt for the “next big thing” I always start the same way. I look for stocks with consistent earnings growth over several quarters. Even better, if there was a downwards earnings trend that reversed and now is heading higher. It shows there has been a huge change to either the market or the individual company. It can lead to some serous gains if I can catch it before the rest of the market does.
One way to find these ideas is by using the Zacks Rank. Stocks in the good graces of the Zacks Rank have seen recent earnings estimate revisions coming from analysts. These positive revisions tell me the analysts know something I don’t, and perhaps the rest of the market does not know either.
Today’s Bull of the Day is a stock I found several months ago and is a success story. It’s
Donnelley Financial Solutions
DFIN
. Donnelley Financial Solutions (DFIN) is a leader in risk and compliance solutions, providing insightful technology, industry expertise and data insights to clients across the globe.
Donnelley Financial Solutions Price and Consensus
Donnelley Financial Solutions price-consensus-chart
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Donnelley Financial Solutions Quote
Donnelley Financial Solutions is a Zacks Rank #1 (Strong Buy). The reason for the favorable Zacks Rank is the positive earnings estimate revisions coming from analysts. Over the last thirty days, analysts have increased their estimates for the current quarter, current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimates for each of those time periods. Current quarter estimates are up from 79 cents to $1.26, current year is up from $4.07 to $5.12, while next year is up from $4.43 to $5.68. That current year number for Donnelley Financial Solutions represent year-over-year EPS growth of 147%. That is on revenue growth of just 10%.
A recent string of earnings beats for Donnelley Financial Solutions is forcing analysts to move their numbers higher. Last quarter’s $1.36 EPS number was 67% better than the 81-cent estimate. Over the last four quarters, Donnelley Financial Solutions has beat earnings by an average of 47 cents.
Tech IPOs With Massive Profit Potential
In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.
For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…
If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.
With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.
See Zacks Hottest Tech IPOs Now >>
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