As the Q3 earnings season begins, investors will focus more on actual financial results and how companies are performing. At the same time, uncertainty remains in the broader economy, with issues like a possible US government shutdown or China-US trade tensions.
For investors, this means looking for companies that consistently deliver strong results and are likely to report solid Q3 numbers.
In practical terms, these are profitable companies that have healthy margins and show strong growth in both sales and earnings.
Since it is impossible to review thousands of stocks individually, investors need a simple way to find the best opportunities.
Investing.com’s ’Profitable Expansions’ screener does exactly that. It highlights companies that are growing while improving margins and profitability, making it easier to spot the strongest performers.
Note: Although the screener’s basic functions are available free of charge, some of the criteria used in this search are reserved for InvestingPro, Pro+ plan members.
This ready-to-use screener applies six criteria with a single click and currently highlights stocks that have collectively risen almost 25% over the past three months.
The screener looks at the following criteria:
Growth health score above 3.75
Earnings health score above 3
TTM sales growth above +15%.
TTM EPS growth greater than +20
Net margin above 15%.
Market capitalization greater than $50 million
Here’s how you can use the ’Profitable Expansions’ screen
To access the screener, visit the Investing.com homepage and click on “Advanced Stock Search” in the black menu at the top.
This Investing.com screener offers more than 20 ready-to-use searches. You can use them as they are, or customize them to fit your needs.
Beginners can start with these pre-configured searches to get familiar with the tool, while experienced users can save time by building on them.
To access these searches, click the “Explore more than 20 filters” button at the top of the screener.
You’ll find the pre-configured search ’Profitable Expansions’ under the “Popular” tab.
Note: Some pre-configured searches are free, while others require an InvestingPro or Pro+ subscription.
If you are not already an InvestingPro member and would like to take advantage of all available preconfigured searches, you can subscribe right now!
9 Stocks Poised to Stand Out in Upcoming Reports
Returning to the ’Profitable Expansions’ stock search, which is the subject of this article, we’d like to point out that, at the moment, the criteria it uses correspond to 96 US stocks. However, we also wanted to know which stocks are due for release in the next few weeks, and could therefore see their volatility soar.
Here too, the Investing.com screener offers the solution, with the search criterion “Date of next results”, which enables us to target stocks that will publish their results today, this week, or over the next 30 days.
For the purposes of this article, we looked specifically at companies due to publish their results in the next 30 days, and discovered that 56 of the 96 stocks identified by the ’Profitable Expansions’ screener will have published their results within the next 30 days.
However, we wanted to go a step further by refining the list with a final search criterion: Potential according to InvestingPro Fair Value.
InvestingPro Fair Value calculates an intelligent average of several recognized valuation models for each stock on the market.
Specifically, we wanted to target stocks with an upside potential of over 20% according to Fair Value. This enabled us to narrow the list down to 11 opportunities:
These stocks, with diverse profiles, are currently undervalued by 20.6% to 43.4%, depending on the valuation model used.
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One of these stocks will release its results tomorrow, Wednesday, October 22. Notably, this company has exceeded analysts’ earnings and revenue forecasts for the last five consecutive quarters, making it a key report to watch this week.
Conclusion
The coming weeks are set to offer plenty of opportunities, and investors who prepare ahead of the Q3 earnings season are likely to benefit the most. Our research has identified several standout stocks worth watching.
These are just a few examples. Other pre-configured Investing.com screener searches, based on different criteria, can also help uncover additional high-potential stocks.
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