7 Best Stocks for Impressive Income Growth in the Future | The investor’s business daily
Investors looking to diversify their portfolios often benefit from broad stock searches. One easy way to do this is to look at the income forecast from a year ago. It includes our picks for the seven best stocks for impressive income growth Art (Aorta) and varicella (VCL) – shares are much less clear Meta (META), Amazon (AMZN), Tesla (TSLA) or other megacaps that dominate the market.
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What are the seven amazing stocks?
Seven best stocks for amazing income growth
Art (Aorta): The company makes medical devices used in cardiovascular surgery procedures and human tissue that can be transplanted. Analysts highlight the potential for significant growth from upcoming products, helping AORT stock join the best stocks list. Artivion forecasts a one percent return to earnings in 2024, up from a net loss per share in the past four years. Next year, they project that EPS will increase to 14 cents on 10% revenue growth, an increase of more than 1,000%. Artivion stock has an IBD Composite Rating of 90 and an RS Rating of 90, both of which are possible 99. The medical device maker is up 10% this year. Shares have risen 72.5% over the past year. AORT stock jumped to new highs on Thursday.
varicella (VCL): This biopharmaceutical company makes products for sports medicine and chronic burns. Vericel has an uneven profit history. However, it enjoys a good growth outlook, earning VCEL a place in the list of best stocks. Analysts expect a strong fourth quarter to push Vericel into positive earnings in 2024 after three years of declining revenue. EPS projects a future 278% sales jump of 23%. Vericel stock has a composite rating of 80 and an RS rating of 91. VCEL stock is up about 5% so far in 2025 and up 46.5% over the past year. Shares found support at the 50-day moving average on Wednesday, with trading volume relatively light.
AI Plays include GE Vernova, Semtech
GE Vernova (GEVGE’s power cycle is seeing end markets recover. He led growth in all business units. Analysts at William Blair call Vernova stock a “best pick” for 2025, as artificial intelligence (AI) data centers consume large amounts of energy. Wall Street expects Vernova’s revenue to grow 174% next year on 5% sales growth. GE Vernova stock rose to 92 and RS Rating of 98. It has tripled its opening price from March 2024. The $115 GEV stock is up 20% this young year ahead of earnings next week.
Semtech (SMTCSemtech offers high-performance semiconductor products, driving efficiency in AI data centers. Analysts expect Semtech’s earnings per share to grow 134% next year, afterA strong return this fiscal year, which ends in January. Semtech in 2010 Revenue falls by 2023. Sales are projected to grow about 5% this year and jump 22% next year. Semtech stock has a 92 and RS Rating of 98. Semtech stock is up 12 percent year-to-date and has nearly quadrupled in the past year, up 273 percent. SMTC stock hit a new high on Wednesday
RH, EQT and Geo group in the list of best stocks
RH (RH): The retailer, formerly known as Restoration Hardware, taps into the high-end furniture market. It is set to more than double its revenue in the coming year. Analysts are predicting an EPS increase of 126% after three years of declines. It will grow to 15% from 6% in the current year, which will end in January. Despite the challenging housing market, RH gave a bright December earnings outlook. RH stock shows a composite rating of 87 and an RS rating of 93. By 2025, it is expected to yield 8% so far and is up 65% over the past year.
EQT (EQT): A vertically integrated natural gas company, EQT focuses on the Appalachian Basin. EQT has divested non-performing and midstream assets, allowing it to focus on its core business plan, JPMorgan analysts said. EQT may also benefit from the incoming Trump administration’s more favorable stance toward fossil fuels. Analysts expect EQT’s earnings per share to more than double next year as sales grow 32 percent after a slide in 2024. EQT stock has a Composite Rating of 86 and an RS Rating of 93. Zip is up 15% year to date and up 46% over the past year. EQT stock rose to a new high on Thursday.
Geo Group (Geo): The company owns and manages correctional facilities and prisons. Private prison stocks are likely to benefit from President-elect Donald Trump’s tougher immigration enforcement, earning GEO Group a spot on the list of best-performing stocks. Analysts say sales will jump 12.4 percent, while GEO’s earnings could jump 83 percent. GEO Group’s revenue has declined in 2023 and is set for another decline in 2024 on anemic sales growth. Jio Stock carries a Composite Rating of 86 and an RS Rating of 98. It is up 23% so far in 2025 and has gained 221% in the past year. Stocks rallied on Trump’s US election victory in November. Jio stock hit a new high on Thursday.
The universe of S&P 500, S&P 400 and S&P 600 stocks.
A little background on the IBD process for picking the best stocks for impressive income growth:
We began our screening process with the S&P Composite 1500 index, which includes the S&P 500, S&P MidCap 400 and S&P SmallCap 600 companies. We chose this index, in part, because it effectively measures the entire U.S. stock market, eliminating less-liquid, overvalued and lower-quality names.
We then restricted the FactSet consensus ratings on our list of top stocks to those that are Overweight or Buy, meaning analysts expect them to outperform their industry peers. Next, we beat the list, setting up a double whammy: The stock should have enjoyed some of the strongest FactSet earnings growth estimates for the next fiscal year, as well as earning strong IBD ratings on Composite Ratings and RS Ratings.
The Seven Best Stocks for Earnings Growth are quite different from the Magnificent Seven Stocks. At the same time, these stocks are just as valuable as any Mag Seven stock in terms of their potential performance.
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