Rising Profit Estimates A Big Part Of Story With These 4 Growth Stocks

First-quarter earnings season is just about over, and analysts are recalibrating sales and profit estimates for the coming quarters. Meanwhile, four growth stocks in IBD’s Rising Profit Estimates Screen have topped buy points.


Hilltop Holdings (HTH) broke out of a cup-with-handle base Thursday. Although shares topped the 37.18 buy point, the stock retreated below the entry in afternoon quotes. Volume finished 31% below average, which also hindered the breakout.

Hilltop is among the dozens of regional banks that have been rising to or near new highs as bond yields climb. It has appeared in IBD’s Stock Spotlight screen. With an average daily volume of 577,000 shares, Hilltop is more liquid than most regional bank stocks. A Composite Rating of 98 reflects impressive accelerating earnings gains of 42%, 69%, 109%, 171% and 186% in the past five quarters, according to MarketSmith.

Analysts expect the bank’s earnings to fall 19% this year to $3.72 a share, but earlier revised that consensus estimate higher.

Waters (WAT) is in a secondary buy zone after shares found support at the 10-week moving average. The primary buy point was 299.16 from a cup-without-handle base that broke out to new highs on April 6.

Iqvia Another Growth Stock In Buy Range

The company is a specialty measurement company focused on human health. As such, it works with drugmakers on clinical trials, the analysis of proteins in diseases, nutritional safety and environmental testing. Earnings this year are expected to climb 11% to $10.06 a share. Plus, analysts have recently raised that consensus estimate.

Iqvia (IQV) has eased from new highs but remains in buy range from a four-weeks-tight formation. The buy range goes from 237.57 to 249.45. Earnings estimates were bumped up to $8.69 a share for 2021, an increase of 35%. Like Waters, Iqvia also provides support services and technology for drug developers.

The stock holds a half-size position in IBD Leaderboard.

The most dramatic gain in the Rising Profit Estimates screen belongs to Skyline Champion (SKY), a builder of mobile homes and modular housing. The stock soared past the 48.01 buy point of a flat base Wednesday on a blowout earnings report. Profit surged 336% vs. a year ago to 61 cents a share.

The stock is extended from its recommended buy zone. Current consensus estimate for the fiscal year ending next March is $1.66 a share, up 8%.

Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia


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