Finding good stocks and buying at the right time can be difficult, but stock screeners use filters to identify these leaders.According to IBD’s Rising Profit Estimates screen, analysts see rising earnings for five noteworthy companies that are near buy points on their chart analysis: Taiwan Semiconductor, Nvidia, Meta stock, Costco, and Robinhood.
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How to buy stocks: Cup and handle chart pattern
Taiwan Semiconductor (TSM) is in a cup handle base with a buy point at 175.45, according to IBD MarketSurge daily and weekly charts. Taiwan Semiconductor is the largest contract chip manufacturer and supplies advanced chips to artificial intelligence leaders such as NVIDIA (NVDA) and Meta Platforms (META).
Revenue and profit growth accelerated in the second quarter, with sales increasing 34% to $20.7 billion and earnings per share rising 31% year over year to $1.47.
FactSet consensus estimates call for revenue and earnings growth to accelerate 36% and 40%, respectively, in the current quarter. Analysts also expect earnings to rise in 2024 and 2025, with full-year earnings per share of $6.48 in 2024 and $8.25 in 2025.
Meta Stock Action
Meta shares are rebounding from a pullback to their 50-day moving average, and a buy point at 542.81 remains valid. Strong IBD ratings and rising earnings estimates are also helping the social media giant. Analysts expect EPS to rise 37% to $21.30 in 2024 and $24.29 in 2025.
The leader of the Magnificent Seven reported June-quarter revenue of $39.1 billion and earnings per share of $5.16. Meta’s shares surged above its 50-day mark on August 1 after the earnings report.
Retailer Costco (COST) is in a buy range above a buy point of 896.67 in a cup base. This is an early stage base that could see higher gains than a later stage base.
Analysts expect current-quarter sales and profits to decline, but for the full year, they expect earnings to rise 10%, to $16.22 a share. For 2025, the EPS forecast is $17.79, suggesting a 10% increase.
Stock brokerage platform providers are also among the companies seeing rising profit estimates, with Robinhood (HOOD) just above the cup with a handle entry of 21.54.
Robinhood’s revenue grew 600% in the second quarter, while sales increased 40%. Rising profit expectations make this stock worth watching.
Investors can see if a company’s earnings estimates are rising by using IBD Stock Checkup: The “Estimate Revisions” line in the fundamentals section will show you whether the consensus estimate is rising or falling.
It may be time to add Taiwan Semiconductor, Nvidia stock, Meta stock, and Robinhood to your watchlist.
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