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As we progress through the new year, investors are certainly watching some of the top-performing stocks of 2024.
Narrowing the landscape, the Zacks Business Services sector has quite a few top performers to watch.
From financial transaction services to technology-driven applications, the business services sector has prime prospects for growth. The essentiality of these businesses is also appealing when considering the ever-evolving technological landscape of today’s society.
Most important to the case for more upside, is that earnings estimate revisions have trended higher for these business services stocks. Soaring well over +100% in the last year, rising EPS estimates suggest their monstrous gains could continue.
Attributed to their increased probability, here are three of these business services stocks to consider with a Zacks Rank #1 (Strong Buy).
The Apps King
Web builder companies like Wix.com WIX have a niche in providing tools and solutions to build apps for small businesses but on a larger scale, AppLovin APP is the king of apps.
AppLovin’s expansion and rapid strive for profitability have taken the market by storm since the company went public in 2021. Speaking to its underlying larger scale, AppLovin’s technology platform enables enterprise-scale app developers to market, monetize, and build their own apps and app technology for others.
This interdependency has catapulted AppLovin’s growth with APP shares trading over $300 after soaring more than +300% in the last year.
Image Source: Zacks Investment Research
Even at current levels, it's hard to count out a continued rally in APP with AppLovin starting to reach and often exceed its quarterly expectations as shown in the EPS surprise chart above.
AppLovin will be reporting its Q4 results for fiscal 2024 in February with annual earnings expected at $4.06 per share compared to $0.98 in 2023. Plus, FY25 EPS is projected to soar another 50% with estimates up 6% in the last 60 days.
Image Source: Zacks Investment Research
Crypto Exchange Leader
Over the last year, Coinbase’s COIN gains of +140% have been near the performance of Bitcoin. As the largest cryptocurrency exchange, the trend of earnings estimate revisions is very pleasant for Coinbase with President Trump’s re-election pushing the price of Bitcoin to over $100,000 again.
The Trump administration has supported the deregulation of cryptocurrency which would certainly help Coinbase’s expansion after launching its IPO in 2021 as well. Like AppLovin, Coinbase has soared past the profitability line and is scheduled to release its Q4 results for FY24 in February. Astonishingly, annual EPS is slated to skyrocket to $5.71 versus $0.37 a share in 2023.