Investors looking to supercharge their portfolios often benefit from a broader stock search. One simple way to do that is to look at year-ahead earnings forecasts. Our picks for the seven best stocks for magnificent earnings growth include Take-Two Interactive Software and Mercury Systems — stocks far less obvious than Meta, Amazon, Netflix or other megacaps that dominate the market.
Take-Two, Mercury Systems Join Best Stocks List
Take-Two Interactive Software: The video game company's franchises include Grand Theft Auto and Borderlands. It's poised to triple earnings per share in the year ahead (up 201%), after three years of flat to declining growth, FactSet shows. Revenue is seen booming 46% next year, up from 5% this year. Recently, Take-Two guided record net bookings over the next two years. As a result, this gaming software play enters the list of stocks for magnificent growth. Take-Two stock shows a Composite Rating of 74 and RS Rating of 93. It holds a 11.3% gain in 2025 so far vs. a 4.1% decline for the S&P 500 index.
Mercury Systems: The company makes critical hardware and software technology products for the aerospace and defense industry. Mercury Systems is poised for a 131% earnings jump in the year ahead, after swinging to a profit in the current one. Revenue is seen growing 6%, recovering from recent yearly declines. Mercury Systems stock shows a Composite Rating of 96 and RS Rating of 95. It holds a 10.1% gain so far this year.
Geo, Biotechs Among Best Stocks For Big Earnings Growth
Geo Group: The company owns and manages correction and detention facilities. Private prison stocks could benefit from tougher immigration enforcement under President Donald Trump, earning Geo Group a place on the best stocks list. Analysts project that Geo's earnings per share will recover 58% in the year ahead as sales jump 10%. They expect Geo earnings to surge 101% next year as sales growth accelerates to 20%. Geo stock holds a Composite Rating of 73 and RS Rating of 97. So far in 2025, Geo stock is down almost 5%.
TG Therapeutics: A biopharmaceutical company, TG sells a multiple sclerosis treatment called Briumvi, which has driven growth. On a per-share basis, analysts forecast TG will see a 550% earnings increase in the year ahead and a further 98% jump the following year. Sales are seeing increasing 68% and 41% over those periods. The company made a turn to yearly profits in 2023, FactSet shows. TG Therapeutics stock shows a Composite Rating of 97 and RS Rating of 98. Year to date, the biotech stock has rocketed 36.4%.
Corcept Therapeutics: The commercial-stage biotech company makes drugs to modulate cortisol, a stress hormone. Analysts project that Corcept's earnings will leap 55% in the year ahead and a further 86% next year. They see sales jumping 34% and 30% over those respective periods. Corcept stock holds a Composite Rating of 86 and RS Rating of 97. So far in 2025, CORT stock has climbed around 10.8%.
Kyndryl, TKO Group Round Out Best Stocks List
TKO Group: The sports and entertainment company owns the Ultimate Fighting Championship (UFC), focused on mixed martial arts, as well as World Wrestling Entertainment (WWE). Analysts forecast an earnings explosion in the years ahead, earning TKO a new spot on the best stocks list. On a per-share basis, TKO's earnings are seen surging to $2.90 in 2025 from two cents last year. TKO earnings are seen jumping a further 77% next year as sales grow 16%. TKO stock holds a Composite Rating of 95 and RS Rating of 93. TKO Group will join the S&P 500 index on March 24 during a quarterly rebalance. It's down 2% in 2025 so far despite a huge Q4 earnings beat in late February.
Kyndryl: The IT infrastructure services provider was spun out of IBM in 2021. The company says it is deliberately "engineering a decline in revenue to get rid of low- or no-margin businesses" and achieve profitable growth, amid demand from cloud hyperscalers. Analysts expect Kyndryl to swing to a yearly profit in the current year. They see Kyndryl earnings leaping 68% in the year ahead as sales stabilize after three down years. Kyndryl stock shows a Composite Rating of 87 and RS Rating of 93. It is up about 2% so far in 2025.
Universe of S&P 500, S&P 400 and S&P 600 Stocks
A little background on IBD's process to select the best stocks for magnificent earnings growth:
We began our screening process with the S&P Composite 1500 index, which aggregates the S&P 500, S&P MidCap 400 and S&P SmallCap 600 companies. We chose this index, in part, because it avoids less-liquid, lower-priced and lower-quality names, while efficiently measuring the total U.S. stock market.
Then we limited the stocks on our best stock list to those showing FactSet consensus ratings of overweight or buy, which means analysts expect them to outperform industry peers. Next we further winnowed down the list, setting up a double hurdle: The stocks had to enjoy some of the strongest FactSet earnings growth estimates for the following fiscal year, while also earning solid IBD ratings, in terms of their Composite Rating and RS Rating.
The resulting seven best stocks for outsize earnings growth are a quite different set from the Magnificent Seven stocks. At the same time, these stocks are worth watching as much as any of the Mag Seven stocks given their outperformance potential.
To find other ideas for the best stocks to buy or watch, check out IBD Stock Lists and other IBD content.
