In today's IBD Screen of the Day, stocks with rising profit estimates include three names that are showing strong patterns and are near buy points.
The biotech industry group has been weak, ranking a lowly 146 out of IBD's 197 industries. Yet Boston-based Vertex Pharmaceuticals has been outperforming and ranks second in the massive 795-stock group.
The drugmaker is primarily involved in treating cystic fibrosis, though it also produces drugs for conditions such as sickle cell disease, beta thalassemia and diabetes.
Earnings have been strong, with three-year EPS and sales growth rates of 53% and 38%, respectively. Vertex has also been a favorite for mutual funds to accumulate new positions.
Shares of Vertex Pharmaceuticals are testing a 255.03 buy point as they try to break out of a cup-without-handle pattern.
Record Container Demand, Solid Profit Estimates
In contrast to pharmaceuticals, the shipping industry has been showing continued strength. Textainer has been riding the wave of demand for leasing of its intermodal containers. The company achieved an almost-perfect 99.7% utilization rate of its containers in the fourth quarter.
As demand soared, so did profits. After posting EPS of $1.63 in 2020, Textainer's earnings jumped in 2021 with a record $5.62 per share.
Amid supply-chain bottlenecks and strong container demand, robust results are expected to continue. Analysts expect earnings to increase to $5.99 a share in 2022 and $6.72 a share in 2023. Textainer currently boasts IBD's top EPS Rating of 99.
Textainer is forming a cup base and has a 41.99 buy point.
Rising Profit Estimates Highlight Clean Harbors
Clean Harbors has seen rising profits as demand for its services increase. The company is involved in the treatment of hazardous waste as well as industrial cleaning, maintenance and recycling services.
Strong demand for waste services led to revenue of $3.81 billion in 2021, nice growth from the $3.14 billion reported in 2020.
CEO Alan McKin reported the outlook as favorable and is expecting continued growth in waste management services, which should lead to higher profits. Analysts expect Clean Harbors' earnings to grow around 15% this year and a further 10% in 2023.
Clean Harbors stock is trading close to a 110.77 buy point as shares form a choppy cup with handle.
