Momentum Stocks Poised to Beat Earnings Expectations

Investors see potential in stocks expected to outperform as fourth-quarter 2024 earnings results align with expectations. Positive EPS growth and revenue increases indicate market optimism.

Date: 23-01-2025

AI Rating: 6

Earnings Per Share (EPS)
Alcoa Corp. is forecasted to have an EPS of $0.91, indicating a substantial year-over-year increase of 262.5%. Given their history of positive surprises, this performance could significantly enhance investor confidence in the stock. PACCAR's anticipated EPS of $1.68 reflects a decrease of 37.8% year-over-year; while improvements in estimates have been noted, the decline could be concerning for investors.

Revenue Growth
Alcoa's revenue for Q4 is expected to reach $3.38 billion, suggesting impressive growth of 30.1% year-over-year. This positive projection, along with a share performance history favorable to surprises, may lead to stock appreciation. However, PACCAR's expected revenue of $7.44 billion indicates a decline of 13.4%. Despite a mild improvement in estimates, the overall downturn is likely to create caution among investors.

Investor Outlook
Deckers Outdoor Corp. (DECK) anticipates a 9.1% year-over-year revenue increase with an EPS forecast of $2.50, showing resilience and a balanced approach to growth. The expected 12% increase in fiscal 2025 net sales adds to this positive outlook. The fact that all three momentum stocks carry a Zacks Rank of either #1 or #2 further underscores their positive earnings anticipation.

In summary, while Alcoa and Deckers demonstrate strong growth prospects, PACCAR's expected decline in EPS and revenues may present a mixed investment landscape, influencing stock price fluctuations based on earnings results.

Stocks: AA PCAR DECK