Google stock, PDD Holdings and Abercrombie & Fitch are in IBD's Rising Profit Estimates screen, found in the IBD Stock Screener. The three are among 119 growth stocks for which analysts recently raised their annual earnings estimates.
FactSet's consensus estimates show current fiscal year profit growth on these companies ranging from 37% to 76%.
Google Stock Flirts With Buy Point
Google parent Alphabet is trading near the 178.77 entry of a four-weeks-tight pattern, a variation on the three-weeks tight pattern. The IBD 50 and Big Cap 20 stock is hovering around all-time highs.
Google stock broke out of a second-stage cup base with a 153.78 buy point on April 1, according to MarketSurge pattern recognition. Shares soared 10.2% in heavy trading after the company easily beat first-quarter earnings and sales estimates on April 25.
FactSet's full-year profit estimate increased to 37% growth, with a 13% rise in 2025. Second-quarter earnings estimates show profit growth slowing to 27% from 53% in Q1. The following two quarters call for 17% then 23%. Meanwhile, Q1 revenue growth jumped to 15%, and is projected to range from 10% to 13% over the next four quarters.
Google stock holds a best-possible 99 IBD Composite Rating and 98 EPS Ratings.
Temu Parent PDD Sees 2024 Profit Growth Of 76%
In addition to Google stock, PDD is also near a buy point. It is back in the 5% buy zone from a cup-with-handle base with a 142.32 buy point. Shares broke out ahead of the company's first-quarter earnings report on May 22. The stock jumped to a 52-week high after PDD Holdings crushed earnings and sales expectations, but quickly dropped back to the buy zone.
The e-commerce stock faces resistance around 150. Shares have underperformed and are nearly flat on the year.
FactSet estimates show full-year earnings jumping to $11.37 a share and $14.65 in 2025. This follows 2023 EPS of $6.46 a share. The second-quarter consensus forecast is for earnings per share of $2.79, then $2.89 and $3.46 in the following two quarters. That would be increases of 44% to 94%.
PDD earns a 99 Composite and EPS Rating. PDD Holdings includes the China-focused e-commerce platform Pinduoduo and international discount retail platform Temu. Its Pinduoduo app had 637 million monthly active users as of May 15, according to Statista.
Abercrombie Back On Top
The clothing retail stock has more than doubled so far this year, after nearly quadrupling in 2023.
Shares exploded 24.3% in huge volume after Abercrombie blew past fiscal first-quarter earnings and revenue estimates on May 29. Same-store sales grew 21% vs. analysts' forecasts of 10.2%, with Abercrombie & Fitch brand comps up 29%. The company also raised its full-year revenue growth guidance to 10% vs. a prior projection of 4%-6%, topping analysts' views.
Its April-ended quarter profit rose a whopping 449% after 267% in the prior period. Sales growth has ranged from 20% to 22% in the last three quarters, with estimates slowing to 16% then 9% and 4% over the next three quarters. FactSet consensus shows 50% profit growth for its fiscal 2025 (ending next January) and 4% in fiscal 2026.
The stock has more than doubled so far this year. It was one of the best performers in 2023, rising 285%, which even outpaced chip giant Nvidia.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
