As the stock market extends its rebound, it's important to watch the stocks most loved among equity analysts. Netflix and GE Aerospace are two of the seven best stocks where investors can find magnificent profit growth prospects.
Netflix Among Best Stocks For Profit Growth
Of 52 analysts covering Netflix, 36 have buy or overweight ratings on the video streaming service. The consensus estimate for 2025 earnings is $25.78, a 26% increase from last year, according to FactSet.
On Friday, Pivotal Research Group analyst Jeffrey Wlodarczak reiterated a buy rating and raised his price target to a 1,600 from 1,350. That's the highest of any Wall Street analyst covering Netflix. The analyst cited increased confidence in Netflix's dominant position in the streaming video market.
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 97 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. The stock is up more than 20% from that entry, meaning that investors can take some profits.
Axon Enterprise Breaks Out
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 4% this year, after gains of 89% and 44% the past two years, according to MarketSurge. Still, Axon has a highest-possible EPS Rating of 99. It is the highest in the security and safety industry group, and Axon also has the best Composite Rating in the group.
The stock on May 13 broke out above the 715.99 buy point of a cup base in active trading. Axon gapped up May 8 after the company beat profit and sales expectations for the first quarter. The company also raised its guidance.
Broadcom Tops Buy Point
Analysts expect Broadcom's earnings to increase 43% in the fiscal year ending in October, to $5.33 a share. There's broad consensus among analysts: 88% of the 49 who follow the company have buy ratings.
The chipmaker has a 99 EPS Rating, after reporting accelerating gains of 7%, 18%, 28%, 45% and 44%, according to MarketSurge. Broadcom reported earnings June 5, edging by analysts' consensus estimates. Its Composite Rating of 98 is among the best in the fabless semiconductor industry group.
The stock topped a 251.88 buy point June 3 and is just below that entry. The buy range goes to 264.47. Shares jumped after Broadcom announced it began shipping its latest data-center switch chip, which has double the bandwidth of any Ethernet switch currently on the market.
The Tomahawk 6 switch is designed for data centers running clusters of artificial intelligence processors.
GE Aerospace Earnings
GE Aerospace has an almost perfect 98 EPS Rating, which ranks first among 73 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 rebounded and are up 11% from a 214.21 buy point and 43% year to date.
The crash of an Air India Boeing 787 has dragged on GE, which built the engines of that plane. The fatal crash is under investigation.
Of 21 analysts who cover the jet engine maker, 76% have buy or outperform ratings. The average target share price is 249.73; the stock currently trades around 238. Analysts expect full-year EPS to climb 21% to $5.56 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%. On May 14, it announced a deal with Qatar Airways for 400 jet engines.
Archrock Owns Top EPS Rating
Archrock has a 99 EPS Rating, the highest of 22 stocks in the oil and gas machinery industry group after reporting EPS gains of 44%, 40%, 67% and 62% the past several quarters.
The consensus analyst estimate for 2025 earnings is $1.55 a share, a 37% increase. EPS rose 90% and 13% in the previous two years. All seven analysts who cover Archrock have buy ratings on the stock.
Archrock, which has a 94 Composite Rating, is a leading provider of natural gas compression services, which are necessary to bring the gas from production areas to consumers via pipelines.
On May 5, the company beat profit and sales estimates and raised full-year adjusted EBITDA guidance to a range of $790 million to $830 million.
The stock has been forming a base since January with a buy point at 30.44. Resistance around the 26 price level could provide an early entry.
Meta Platforms
Meta Platforms, the parent company of Facebook and Instagram, posted earnings gains of 73%, 37%, 50% and 37% the past four quarters. That's helped give the stock a 96 EPS Rating. Its Composite Rating is 97.
Of 72 analysts who cover Meta, 88% have top ratings. The consensus analyst estimate for this year is $28.81 a share, a decline of 5%. EPS increased 55% and 50% the previous two years, according to FactSet.
Meta stock broke out of a cup-with-handle base on June 2 and remains in buy range from the 662.67 buy point.
The company reportedly plans to make a multibillion investment in the startup Scale AI, which provides data labeling services that help with the training and production of large-language models.
Chefs' Warehouse
Chefs' Warehouse has the highest EPS Rating (95) of 11 stocks in the miscellaneous food preparation industry group.
That reflects accelerating EPS gains of 9%, 17% and 67% the past three quarters. That's well above the three-year earnings growth rate of 20%. Sales growth, however, remains in single digits.
Analysts are unanimously bullish on the stock, with all seven giving a buy recommendation. The consensus EPS estimate for this year is $1.73, an 18% increase, according to FactSet.
The food distributor specializes in serving premium restaurants, hotels and fine-food stores. It supplies cheeses, chocolates, meats, cooking oils and other foods, some which are imported.
The stock is forming a cup-with-handle base with a 66.26 buy point. Shares tried to break out from a 65.39 handle entry but stumbled. Chefs' Warehouse has a 93 IBD Composite Rating.
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.
