Chicago, IL – January 13, 2025 – Stocks in this week’s article are Chipotle Mexican Grill, Inc. CMG, ResMed Inc. RMD and ServiceNow, Inc. NOW.
3 S&P 500 Earnings Growth Stocks to Buy in 2025
The S&P 500 is expected to rise in 2025 due to Donald Trump’s growth plans, the Fed’s rate policies, and a strong U.S. economy. Thus, investors should seize the positive trend by placing bets on the S&P 500 stocks, such as Chipotle Mexican Grill, Inc., ResMed Inc. and ServiceNow, Inc. since they exhibit superb earnings growth.
Earnings are considered the most important variable influencing the share price. After all, if the company doesn’t make money, it won’t survive. But, expectations of earnings also play a striking role.
Earnings Estimates & Share Price Movements
Frequently, we have seen a decline in the stock price despite earnings growth and a rally in price following an earnings decline. This is largely the result of a company’s earnings failing to meet market expectations.
Earnings estimates embody analysts’ opinions on factors such as sales growth, product demand, competitive industry environment, profit margins, and cost control. Thus, earnings estimates serve as a valuable tool, while making investment decisions. Earnings estimates also help analysts assess the cash flow to determine the fair value of a firm.
Thus, investors should watch for stocks ready to make a big move. Hence, investors need to buy stocks with historical earnings growth and are seeing a rise in quarterly and annual earnings estimates.
We use that basis to determine our stock selections using Zack’s Research Wizard Tool.
The above criteria narrowed the universe of around 7,839 stocks to only 16. Here are the top three stocks:
Chipotle Mexican Grill
Chipotle Mexican Grill owns and operates Chipotle Mexican Grill restaurants. The company’s expected earnings growth rate for the current year is 23.3%. CMG currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ResMed
ResMed creates medical devices and software for healthcare markets. The company’s expected earnings growth rate for the current year is 21.2%. RMD currently has a Zacks Rank #2.
ServiceNow
ServiceNow offers intelligent workflow automation solutions for digital businesses. The company’s expected earnings growth rate for the current year is 28.7%. NOW currently has a Zacks Rank #1.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2394665/3-sp-500-earnings-growth-stocks-to-buy-in-2025-cmg-rmd-now?art_rec=quote-stock_overview-zacks_news-ID05-txt-2394665
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