As the stock market extends its rebound, it's important to watch the stocks most loved among equity analysts. Netflix and DoorDash are two of the seven best stocks where investors can find magnificent profit growth prospects.
Netflix Among Best Stocks For Profit Growth
More than 70% of analysts covering Netflix have buy or overweight ratings on the video streaming service. The consensus estimate for 2025 earnings is $25.66, a 25% increase from last year, according to FactSet.
The stock is on an 11-day win streak, the longest in the stock's history, according to Dow Jones Market Data. Shares have risen about 20% over that period.
On April 17, the company's first-quarter sales and earnings topped expectations. Earnings per share rose 25% as sales climbed 12.5%. Executives said Netflix hasn't been disrupted much at all by trade and tariff uncertainty.
Its EPS Rating is 98 and the Composite Ratings is a highest-possible 99. Both are best in its industry group.
The stock broke out of a double-bottom base with a 998.70 buy point April 21 and is extended past the buy point.
Biotech EPS Leads Big Industry Group
GE Aerospace has an almost perfect 98 EPS Rating, which ranks second among 71 stocks in the aerospace and defense industry group. The stock sold off in early April as tariff worries swept through the stock market. But shares are back above the 50-day moving average and nearly 25% higher for the year.
Of 22 analysts who cover the jet engine maker, 86% have buy or outperform ratings. The average target share price is 226.88; the stock currently trades around 208. Analysts expect full-year EPS to climb 20% to $5.52 a share.
The company on April 22 reported quarterly earnings that topped expectations. GE said it took measures to mitigate tariff impacts, which allowed it to maintain its full-year outlook. First-quarter earnings jumped 60%.
DoorDash's performance has been enough to convince 31 analysts to give the stock their highest rating, or 72% of all who cover the company. The food-delivery app started turning profitable last year, which is why its EPS Rating is 80.
Analysts expect this year's earnings to rise 15% to $4.14 a share on a 21% increase in sales to $12.941 billion, according to FactSet. DoorDash bounced off support at it's the 200-day moving average April 7. The stock on Friday broke out of double-bottom base with a 201.03 buy point.
Out of 58 stocks in IBD's internet retail industry group, DoorDash has the third-highest Composite Rating, a 99. Retailers face the risk of a slowing economy, but at least one analyst believes the company's international expansion bodes well.
Eli Lilly A Best Stock In Health Care
Eli Lilly counts on 25 Wall Street analysts who give the drugmaker a top rating, or 86% of all who cover the company. Its EPS growth is expected to surge 69% this year, even after a 106% jump in 2024.
The stock rose more than 4% Friday afternoon after the company beat first-quarter earnings expectations but cut its profit guidance. Shares sold off Thursday after CVS' Caremark chose rival Novo Nordisk's Wegovy as its preferred weight-loss drug.
Lilly — one of the major players in the hot market for weight-loss drugs — averaged 408% EPS growth the past three quarters, according to IBD Stock Checkup.
Only six companies are in the diversified medical industry group, and best stock Lilly has the second highest EPS Rating (93) in it.
Shares fell earlier in April after President Donald Trump said he'll impose major tariffs on pharmaceuticals. Headlines on weight-loss drugs also have caused volatility in Lilly shares.
Also in health care, Boston Scientific finds that 85% of the 34 analysts covering the company have the highest ratings. The consensus EPS estimate for 2025 is $2.67 a share, an increase of 33% year over year.
The stock broke out of a double-bottom base Friday as it crossed the 104.35 buy point. Volume was below average, but the relative strength line is at new highs.
It has the third-highest Composite Rating of 126 stocks in the medical products industry group and second-best EPS Rating.
Boston Scientific provides minimally invasive technologies for coronary artery disease and aortic valve conditions. It also makes devices for endoscopy and urology, such as kidney stones, and an implantable device for chronic pain, among other products.
Intuitive Surgical
While 57% of the 35 analysts who cover Intuitive Surgical have buy ratings. And while the rest are less bullish on the stock the consensus price target is 579.46, according to FactSet. That's a 9% potential upside if analysts are correct.
The provider of robot-assisted surgical machines saw earnings grow 23%, 25%, 26%, 38% and 21% the past several quarters. Sales increased 11%, 14%, 17%, 25% and 19%. That's why Intuitive Surgical is the No. 1 stock in IBD's medical equipment industry group. It owns the best Composite, SMR and EPS Ratings of 65 stocks in the group.
Analysts expect Intuitive Surgical's earnings to rise 6% this year to $7.79 a share, according to MarketSurge.
Bear in mind, Intuitive faces risk from tariffs on Mexico.
The stock climbed back above its 50-day and 200-day moving averages. It is still forming a base, although it is a riskier late-stage formation.
Of 18 analysts covering Axon Enterprise, 83% have buy ratings and the rest hold ratings. Analysts expect the maker of Taser stun guns, body cameras and other police equipment will see its fast profit growth slow, however.
Analysts expect EPS to rise 2% this year, after gains of 89% and 44% the past two years. Still, Axon has a rare combination of highest-possible Composite and EPS Ratings, both 99.
The stock has held above its 200-day moving average and regained its 50-day line. It is forming a cup base with a 715.99 buy point. Axon will report first-quarter earnings on Wednesday after the close.
Universe of S&P 500, S&P 400 and S&P 600 Stocks
To select companies for this list, IBD used a combination of FactSet data and IBD ratings.
The screening began with the S&P Composite 1500 index, which aggregates the S&P 500, S&P MidCap 400 and S&P SmallCap 600 companies. This index is a good representation of the U.S. stock market while eliminating less-liquid and lower-quality names.
The next layer of screening flagged companies showing FactSet consensus ratings of overweight or buy, the most bullish views. To further refine the list, we screened for stocks with strong analyst consensus earnings growth estimates for the current fiscal year. In the final cut, we selected stocks with high Composite Rating and Relative Strength Ratings.
The final seven best stocks for outstanding earnings growth and estimates overlap with some Magnificent Seven stocks.
To find other ideas for the best stocks to buy or watch, check out IBD Stock Lists and other IBD content.
