This earnings season hasn’t been so hot.
Outside of a few big winners in the glamour stocks like Amazon and Facebook, both of which hit new highs after reporting earnings, there were plenty of others who disappointed and saw big sell offs.
Earnings season separates the wheat from the chaff.
Who is really performing well in this challenging global economy?
Look for the “Beat and Raise”
Despite all the doom and gloom being touted out there, it’s possible to find the secret winners, those companies not everyone is talking about, which are performing at the highest level.
Some companies not only beat the quarterly earnings estimate but they raised full year guidance. This is what is routinely referred to as the “beat and raise.”
With currency issues and the commodities slowdown, however, the beat and raise has been harder to come by this quarter. Only the top companies have done it. They are seeing strong fundamentals going into the end of the year and the momentum looks to be continuing into 2016.
If you’re going to invest, why not focus only on the best?
5 Beat and Raise Stocks to Buy Now
All 5 of these stocks are Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks. That means they have rising earnings estimates which makes sense as they recently raised full year guidance so analysts have had to boost estimates to keep up.
1. Nutrisystem, Inc. (NTRI – Snapshot Report)
Nutrisystem sells weight loss programs to men and women in the United States. Health and wellness has come into the spotlight, including better eating.
The company beat by 2 cents and raised the lower end of its full year EPS guidance range. This was the second quarter in a row the company beat-and-raised.
Revenue jumped 16% as retail revenues rose 35% due to traction at Walmart and new product launches.
Earnings are now expected to be in the range of $0.91 to $0.96 up from its prior range of $0.87 to $0.97. The full year outlook is looking a lot more bullish than it did earlier in the year when the company was only looking for $0.73 to $0.83.
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