There Is Great Potential For Earnings Growth With These Well-Liked Stocks

The stock market has been struggling recently due to some uncertainty about the job market, but as investors prepare for earnings season, there are still plenty of opportunities available for them.

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It is expected that a number of large banks, Delta Air Lines, UnitedHealth, and a number of other large companies will begin reporting their first-quarter financial results next week. Based on Refinitiv's analysis of the first quarter of 2018, the S&P 500 is expected to, according to its estimates, losing 5.5% from the same period a year ago.

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Trade Algo investigated stocks that are cheaper than the S&P 500, have a high Wall Street rating, and are expected to grow earnings this week as a result of the company's expansion. There are a number of stocks in the table below that meet the following criteria:

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• Price-to-earnings multiple less than 18 (below S&P 500)
• A minimum of 25% growth in earnings is expected this year
• A minimum of 60% of analysts recommend buying the stock

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The stocks are as follows:

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• Vici Properties

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• Baker Hughes

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• Delta Air Lines

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• Match Group

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• Targa Resources

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• Halliburton

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• Schlumberger

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• Alaska Air Group

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• Microchip Technology

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The stock is among the top rated, with over 85.7% of analysts giving it a buy rating, and the potential upside for following the stock is more than 50% based on the average price target of the analysts. Delta will report next Thursday. Aside from being the cheapest stock on this list, it is also expected to grow earnings by 65% this year and has a forward price-earnings multiple of 6.

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There are currently 86% of analysts who rate Alaska Air a buy, indicating they expect earnings growth of 31.5% in the next three years. In terms of its forward price-earnings multiple, it comes in as the second-cheapest stock on the table with a forward P/E of 7.

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Baker Hughes, Targa Resources, Halliburton, and Schlumberger are some of the biggest names in the energy sector that make up this list, which also includes Baker Hughes. In terms of price-earnings multiple, Baker Hughes has a value of 17.8. With 72.5% growth in its estimated earnings, Baker Hughes has the second-highest price-earnings multiple.

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Halliburton is the company with the greatest upside potential, with an estimated 49% upside potential, among the energy companies.

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I have to say then that Vici Properties, which owns around half of the country's commercial real estate market, is ahead of it in terms of growth in earnings. For 2023, Vici Properties is forecast to grow earnings by approximately 93.5%, with a price-earnings multiple forward of 13.1. Some 83% of analysts have given Vici a buy rating, and JPMorgan just included that stock on its April focus list.

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Microchip Technology is expected to grow its earnings by 30% and increase its stock price by 19% in the next few years.

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Match Group, another tech name, has a forward PE multiple of 17.9, tying with Baker Hughes. This company has the best upside potential at 68%.

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