These stocks have a market cap of more than $35 billion and positive earnings per share estimates (EPS).
We predict these stocks have double-digit price upside in the short term, and have strong buy rankings.
Shares of Amazon, Marvel, the Travelers Companies and United Airlines increased YOY between 22% and 169%.
U.S. stock markets witnessed an astonishing rally in the last two years. However, volatility reappeared on Wall Street in mid-December. The much-hyped Santa Claus rally did not materialize in the 2024-25 sessions. Markets have been fluctuating since the beginning of this year due to various reasons.
A long list of U.S. stocks has skyrocketed in the last two years. Moreover, a handful of stocks flying high in the past year with a favorable Zacks Rank have seen positive earnings estimate revisions over the last 30 days.
Investment in these stocks should be prudent as the combination of recent positive estimate revisions and a favorable Zacks Rank indicate that the ongoing momentum of these stocks is likely to continue at least in the near future.
Five such stocks are: Amazon.com Inc. AMZN, Coinbase Global Inc. COIN, Marvell Technology Inc. MRVL, The Travelers Companies Inc. TRV and United Airlines Holdings Inc. UAL.
Buy 5 U.S. Bigwigs With Robust EPS Estimate Revision
We have selected five stocks based on four criteria. First, these corporate behemoths have a market capital of > $35 billion. These companies have a well-established business model globally, strong brand value and a sound financial position. Second, these stocks have seen positive earnings per share (EPS) estimate revisions over the last 30 days.
Third, these stocks have double-digit price upside potential in the short-term. Fourth, each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past year.
Zacks Investment Research
Image Source: Zacks Investment Research
Amazon.com Inc.
Amazon.com has been benefiting from Prime and AWS momentum. We expect 2024 net sales to increase 10.7% from 2023. Strengthening AWS services portfolio and AMZN’s growing adoption rate contributed well to AWS performance. AMZN’s ultrafast delivery services and expanding content portfolio were beneficial.
The strengthening relationship with third-party sellers was a positive. Robust advertising business contributed well. AMZN’s expanding global presence remains a positive. AMZN’s Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Deepening focus on generative AI is a major plus.
Amazon.com has an expected revenue and earnings growth rate of 10.9% and 19.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.
The average short-term price target of brokerage firms represents an increase of 14.6% from the last closing price of $223.35. The brokerage target price is currently in the range of $197 to $290. This indicates a maximum upside of 29.8% and a downside of 11.8%.
Coinbase Global Inc.
Coinbase Global provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions, and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Moreover, COIN offers one of the most user-friendly platforms for investors because of its straight-forward user interface and simple buying process. Coinbase also provides more sophisticated trading features for experienced users, including a professional trading platform and staking, which allow users to earn rewards for holding specific cryptocurrencies.
Solid Earnings Estimate Revisions for COIN Stock
Coinbase Global has a return on equity (ROE) of 14.81% compared with the industry ROE of 12.92% and the S&P 500 ROE of 16.84%. COIN has a current net margin of 29.76% compared with the industry’s net margin of 4.90% and the S&P 500’s net margin of 12.45%.
The average short-term price target of brokerage firms represents an increase of 15.5% from the last closing price of $274.93. The brokerage target price is currently in the range of $185 to $420. This indicates a maximum upside of 52.7% and a downside of 32.7%.
Marvell Technology Inc.
Marvell Technology is benefiting from the strong demand environment across the data center end market. In the last reported quarter, MRVL’s data center end market revenues increased 98% year over year and 25% sequentially, propelled by strong revenue growth across AI-driven demand for PAM products and ZR electro-optics.
MRVL is a promising player in the solid-state drive controllers’ market. The storage market is seeing a steady increase in demand, given the fast-growing data volume, especially the exponential growth in unstructured data. Completion of inventory digestions is likely to aid growth for MRVL across the enterprise networking and carrier infrastructure end markets.
Strong Earnings Estimate Revisions for MRVL Shares
Marvell Technology has an expected revenue and earnings growth rate of 40.3% and 72.8%, respectively, for next year (ending January 2026). The Zacks Consensus Estimate for next-year earnings has improved 0.4% in the last 30 days.
The average short-term price target of brokerage firms represents an increase of 10% from the last closing price of $116. The brokerage target price is currently in the range of $95 to $160. This indicates a maximum upside of 37.9% and a downside of 18.1%.
The Travelers Companies Inc.
The Travelers Companies boasts a strong market presence in auto, homeowners’ insurance and commercial U.S. property-casualty insurance with solid inorganic growth. A high retention rate, a rise in new business and positive renewal premium change bode well. TRV’s commercial businesses should perform well owing to market stability.
TRV remains optimistic about the personal line of business, given growth at the profitable agencies like auto and homeowners business. Strong and reliable returns from the growing fixed-income portfolio should drive net investment income. Sufficient capital boosts shareholder value. TRV aims for a mid-teens core return on equity over time.
Impressive Earnings Estimate Revisions for TRV Stock
The Travelers Companies has an expected revenue and earnings growth rate of 7.5% and 8.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% in the last 30 days.
The average short-term price target of brokerage firms represents an increase of 13.2% from the last closing price of $239.98. The brokerage target price is currently in the range of $203 to $310. This indicates a maximum upside of 29.2% and a downside of 15.4%.
United Airlines Holdings Inc.
United Airlines Holdings has been benefiting from swelling passenger volumes. UAL's ability to capitalize on strong corporate travel volumes and premium leisure demand is supporting growth. Low fuel costs are aiding UAL’s bottom line. The recent announcement of the $1.5 billion share buyback plan highlights the carrier's shareholder-friendly approach. This is UAL’s first buyback program since the pandemic.
Earnings Estimate Revisions of UAL Shares on the Rise
United Airlines Holdings has an expected revenue and earnings growth rate of 6.5% and 21.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.5% in the last seven days.
The average short-term price target of brokerage firms represents an increase of 16.6% from the last closing price of $104.96. The brokerage target price is currently in the range of $75 to $150. This indicates a maximum upside of 42.9% and a downside of 28.6%.
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