Ultimately, earnings drive share prices. So investors should look for stocks with stellar profit outlooks.
AI leader Nvidia, Shopify, Meta Platforms, Li Auto, Array Technologies are expected to more than double earnings per share in 2023 or current fiscal year, some by far more. And they're all near buy points, with several actionable now.
Nvidia, Meta and Shopify are S&P 500 giants. META stock and Nvidia are on IBD Leaderboard. LI stock is on the IBD 50.
Expected Earnings Growth
| Company | Ticker | Expected EPS growth, current fiscal year | 2023 stock price gain |
|---|---|---|---|
| Li Auto | LI | 7,800% | 99.4% |
| Shopify | SHOP | 1,201% | 82.7% |
| Nvidia | NVDA | 187% | 211.9% |
| Array Technologies | ARRY | 172% | 36.2% |
| Meta Platforms | META | 114% | 159% |
Nvidia Earnings
Nvidia earnings are expected to surge 187% to $9.60 a share in fiscal 2024 ending in January. And those earnings will be backloaded. In the first half, Nvidia has reported just $3.79 a share.
Nvidia is capitalizing on the artificial intelligence boom, with seemingly endless demand for its chips.
Nvidia stock has tripled in 2023, up 211.9% as of Sept. 14. Shares are fighting for support at the 50-day line after pulling back from the 500 level. NVDA stock could be working on a new base. A strong move above the 50-day line would offer an early entry, perhaps using the 21-day line as a specific trigger.
Despite Nvidia's pullback, the relative strength line is still close to recent record highs.
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Shopify Earnings
Shopify earnings are expected to explode 1,201% to 52 cents a share in 2023. As with Nvidia, the earnings will be backloaded, with Shopify reporting just 15 cents in the first half.
The e-commerce software giant has seen its earnings outlook skyrocket on its to exit the fulfillment business, announced May 4 along with Q2 results. That will slash costs and end Shopify's direct competition with Amazon.com. On Aug. 31, Amazon announced an expanded integration with Shopify.
SHOP stock has leapt 82.7% through Sept. 14. Shares spiked on the May 4 fulfillment news and Aug. 30 Amazon news. Shopify stock has now formed a cup-with-handle base with a 67.60 buy point. Investors could use the Sept. 12 high of 64.92 as an early entry from breaking the downtrend in the handle.
Meanwhile, AMZN stock is near a 143.63 flat-base buy point after already clearing an early entry.
Meta Earnings
Meta earnings are set to surge 114% to $18.39 a share after tumbling in 2022. Meta Platforms announce big job cuts starting late last year and cut capital spending on its metaverse efforts. Revenue growth has rebounded as well.
Meta stock has spiked 159% in 2023 as of Sept. 14. Shares have forged a new base with a 326.20 buy point, according to MarketSmith.
Thursday's move above the Sept. 11 high of 309.04 offered an early entry.
Li Auto Earnings
Li Auto earnings are expected to skyrocket 7,800% to 79 cents a share vs. 1 cent a year earlier. Sales are skyrocketing, with growth accelerating to 203% in Q2. The Chinese EV startup has seen deliveries of its premium hybrid SUVs skyrocket in 2023, with plans for an all-electric minivan soon.
LI stock has nearly doubled in 2023, up 99.4% as of Sept. 14. Shares pulled back from a near-record high of 47.33 on Aug. 8 and appear to be working on a new base, finding support at the 50-day line.
Investors could use a break of a downward-sloping trendline as an early entry, perhaps using the Sept. 12 high of 41.25 as a specific trigger.
Array Earnings
Array earnings are expected to surge 172% to $1.03 a share in 2023. That's after soaring 443% in 2022.
Array makes ground-mounted tracking systems for solar panels, to maximize production.
ARRY stock is up 36.2% so far in 2023, trying to clear a choppy range going back to August 2022.
Shares moved back above a 24.99 consolidation buy point on Sept. 13. But Array stock is now extended from the 5% buy zone and far beyond the 50-day line.
Please follow Ed Carson on X/Twitter at @IBD_ECarson for stock market updates and more.
