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There are a number of top-rated Zacks stocks standing out from a variety of sectors as investors eye Wednesday’s Federal Open Market Committee (FOMC) meeting.
With most eyes on the direction of monetary policy, here is a look at a few companies that may be ahead of the curve after beating earnings expectations on Monday.
A Promising Cloud Services Giant
Among tech stocks cloud networking solutions provider Arista Networks ANET had a standout third quarter and easily surpassed top and bottom-line expectations.
Arista’s stock popped +14% today after Q3 earnings of $1.83 per share beat the Zacks Consensus of $1.58 a share by 16%. More impressive, Q3 earnings soared 46% year over year with sales of $1.50 billion topping estimates by 2% and rising 28% from the prior-year quarter.
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Catering its solutions to internet companies, cloud service providers, and enterprises, Arista’s annual earnings are now projected to soar 35% in fiscal 2023 to $6.17 per share with sales forecasted to climb 31% to $5.75 billion. Plus, Arista is expecting high single-digit percentage growth on its top and bottom lines in FY24.
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Transportation Leaders
The Zacks Transportation sector had two standouts on Monday in XPO XPO and Matson’MTX. Both were able to beat top and bottom-line expectations and are enjoying favorable earnings estimate revisions.
Providing asset-based less-than-truckload (LTL) transportation primarily in North America, XPO’s Q3 earnings of $0.88 per share blasted expectations of $0.63 a share by 39% with sales of $1.98 billion topping estimates by 3%. Plus, fiscal 2023 earnings estimates have risen 5% in the last 60 days with FY24 EPS estimates up 7%.
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Offering international logistic services including rail intermodal service, truckload, and LTL, Matson’s Q3 earnings of $3.40 per share surpassed estimates by 1% with sales of $827.50 million coming in 1% above the Zacks Consensus as well.
More impressive, in the last two months, Matson’s FY23 and FY24 earnings estimates have skyrocketed 27% and 28% respectively.
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Undervalued Construction Titan
Lastly, Boise Cascade BCC is intriguing with its stock starting to stand out among the Zacks Construction sector.
Boise Cascade operates as a wood products manufacturer and building materials distributor engineering plywood, lumber, and particleboard. Third-quarter earnings of $3.58 per share beat expectations by 3% despite sales of $1.83 billion missing estimates by roughly -1%.