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3 Top-Rated Stocks to Buy for EPS Growth Potential After Earnings

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As we start to wrap up this earnings season a few more companies are starting to stand out after their quarterly results last week.

Here are three top-rated Zacks stocks that are worthy of consideration after beating earnings expectations and solid EPS growth appears to be on the horizon.

Arcos Dorados (ARCO - Free Report) )

Among American Depository Receipts (ADRs) Arcos Dorados stock is starting to look attractive with a Zacks Rank #2 (Buy) after beating its first-quarter earnings expectations on May 17.

Arcos' Retail-Restaurant Industry is also in the top 24% of over 250 Zacks industries. The company offers investors international exposure to this strong industry with Arcos operating as a franchisee of McDonald’s in Brazil and across various parts of Latin America and the Caribbean.

Earnings of $0.18 per share came in 50% above Q1 EPS expectations of $0.12. More intriguing, Arcos' outlook and annual growth look attractive at the moment. With shares of ARCO trading around $9, annual earnings are now forecasted to be up 4% in fiscal 2023 and jump another 13% in FY24 at $0.82 per share. Even better, earnings estimate revisions have continued to trend higher over the last 60 days which could be a further catalyst for Arcos stock.

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Eagle Materials (EXP - Free Report) )

With the Building Products-Concrete and Aggregates Industry in the top 6% of all Zacks industries, Eagle Materials stock is standing out with a Zacks Rank #2 (Buy).

As a manufacturer and distributor of cement, concrete, and aggregates, Eagle appears to be benefiting from its strong business environment with the company blasting its fiscal fourth-quarter earnings expectations last Thursday.

Eagle’s Q4 EPS of $2.79 crushed earnings estimates of $2.35 per share by 19%. Annual earnings are now forecasted to be up 1% in Eagle’s current fiscal 2024 and jump another 11% in FY25 at $14.11 per share. Fiscal 2025 earnings projections represent a very stellar 105% EPS growth over the last five years with 2021 earnings at $6.86 per share. Plus, earnings estimate revisions have gone up over the last week folliwng Eagle's Q4 report.

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The TJX Companies (TJX - Free Report) )

The TJX Companies is one of the notable retailers sticking out at the moment with a Zacks Rank #2 (Buy) and its Retail-Discount Stores Industry is in Zacks top 50%.

As a leading off-price retailer of apparel and home fashions TJX comfortably topped its Q1 earnings expectations last Wednesday. First-quarter earnings of $0.76 per share beat EPS estimates by 7%. This was despite a very slight miss on the top line.

Still, TJX’s outlook is starting to brighten and this should continue as inflationary concerns keep easing. To that point, annual earnings are anticipated to jump 14% in FY23 and rise another 10% in FY24 at $3.92 per share.

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Takeaway

The EPS projectory of these stocks is attractive at the moment especially with many businesses still dealing with slowing growth in correlation with high inflation. The bottom-line expansion potential also makes Arcos Dorados, Eagle Materials, and TJX Companies viable investments for 2023 and beyond.


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The TJX Companies, Inc. (TJX) - free report >>

Eagle Materials Inc (EXP) - free report >>

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