Increasing profits is one of the crucial elements in The IBDs Methodology. The IBD Rising Profits screen identified IBD MarketSurge Growth 250 names Carvana stock and BrightSpring Health Services, and both are nearing buy points of cup bases. And United Natural Foods is inching up in a base with an earnings report looming.
Today's screen identified 180 stocks where analysts recently raised their earnings estimates and these three names are worth highlighting.
Carvana Stock Looks To Extend A Five-Week Rally
Carvana stock rallied 4.3% on Monday, recouping much of Friday's 6.1% drop. But shares remain below the 292.84 buy point of a deep, early-stage cup base. The stock tapped the entry point Thursday as shares surged 10.2%, but the breakout faded.
Its 10-week moving average is starting to turn upward, which is a positive sign for the stock.
The online used-car retailer reported better-than-expected first-quarter profit and sales late Wednesday. It sold 133,898 retail units, for a new quarterly record. Its Q1 revenue grew 38%, while its earnings soared to $1.51 per-share from 23 cents-per-share a year ago.
Carvana also expects continued retail unit growth to another record high in the second quarter.
Analysts boosted their full-year 2025 profit projections to $4.59 per share, or 189% growth. And earnings estimates show $5.81 per-share in 2026, or a 26% increase. Carvana's recent EPS increases are identified by upward green arrows on its MarketSurge weekly chart.
Its IBD Accumulation/Distribution Rating of B+ indicates fairly heavy institutional buying over the last 13 weeks. Mutual funds have added shares, with 1,236 owning Carvana stock, up from 1,180 in December and 705 in September. And its 1.8 up/down volume ratio shows positive demand over the last 50 days.
Lastly, Carvana stock boasts a best-possible 99 IBD Composite Rating.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
BrightSpring Health Stock Jumps After Earnings
BrightSpring Health Services stock retreated 2.1% Monday after three straight rising weeks. The stock has rallied an impressive 44% from the bottom of the cup reached on April 21.
The stock is building the right side of a deep cup base with a 24.82 proper buy point. Shares gapped up 16.6% in heavy volume May 2, following the company's beat on first-quarter profit and revenue forecasts. BrightSpring also raised its full-year 2025 net revenue guidance to $12 billion to $12.5 billion, which topped views.
Its Q1 earnings improved to 5 cents per share vs. a net loss of 33 cents a year ago. Revenue increased 26%. The company's top-line growth has averaged around 27% over the last four quarters.
Analysts' full-year 2025 projections now show an 80-cent per-share profit after three straight years of losses, and earnings of 96 cents in 2026, up 20%.
Its relative strength line reached a 52-week high, as shown by the blue dot on its weekly stock chart in MarketSurge.
Shares started trading on Jan. 26, 2024, with an offer price of 13 a share. The recent issue was the IPO Stock Of The Week Friday.
The company provides health care services to patients needing complex, specialized or chronic care in home and in community settings. It offers pharmacy services, home health care, hospice and long-term care to behavioral and neurological rehabilitation patients.
BrightSpring Health ranks No. 1 out of 18 stocks in the IBD Medical-Outpatient/Home Care group.
United Natural Foods Triples In A Year
United Natural Foods stock on Monday briefly surpassed the 28.42 entry point of a double-bottom base, within a longer consolidation pattern with a 34.76 entry. The stock reclaimed its 50-day moving average Thursday.
One flaw of the 28.42 entry is that it lies in the lower half of the entire base. You'd prefer to see the buy point in a double bottom to be higher than the midpoint of the high and low within the pattern.
Shares have tripled since its April 2024 low of 8.58.
The natural foods distributor looks to have turned the corner after a dismal year in 2024, with profit sharply dropping. United Natural topped fiscal second-quarter profit and revenue estimates March 11. Its fiscal Q2 free cash flow also improved to $193 million from $116 million.
Management also raised full-year net sales guidance to $31.3 billion to $31.7 billion, in the earnings release.
Fiscal 2025 earnings estimates call for 81 cents-per-share, up from 14 cents-per-share in 2024. That sits in the middle of the 70 cents-per-share to 90 cents-per-share range the company guided in its Q2 earnings release.
Analyst projections show fiscal 2026 EPS rising to $1.39, or 68%.
Its quarterly sales have been lackluster, ranging from a decline of 1% to a 10% increase over the last eight quarters. Revenue forecasts show a 4% rise for fiscal Q3 then a 4% drop the following quarter.
The company historically reports its fiscal third-quarter earnings in early June.
United Natural Foods distributes over 250,000 natural, organic and conventional products to suppliers and retailers.
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