Stocks will most likely see the biggest earnings growth in 2023
Big banks opened fourth-quarter earnings season on Friday, and with inflation still at generation-highs and a possible recession looming on the horizon, investors have been waiting for corporate earnings expectations to fall. The financial sector usually sets the tone for what earnings numbers could look like over the next few weeks, and on Friday morning the CEOs of all four major US banks warned of a possible imminent “mild recession” in 2023. Still, several stocks are poised this year to experience rapid earnings growth. CNBC Pro collected the names of 20 companies poised to grow earnings by at least 20% in 2023, with some set to see earnings growth of more than 90% using data from FactSet. Every stock on our list has an implied upside potential of at least 20%, based on analysts’ consensus price target. Here are the stocks: Wells Fargo is the only financial stock in the group. It could boost revenue by nearly 63% this year. In its financial update Friday morning, the bank said net interest income could be about 10% higher than full-year 2022 levels. Southwest Airlines is still recovering from a systems failure in December that forced it to cancel more than 17,000 flights, stranding thousands of passengers. Last week, Southwest said it expected a fourth-quarter loss. Still, it had the greatest earnings growth potential in the group we surveyed: 92% in 2023. Analysts estimate the stock price could rise 30% based on average 12-month price targets. Delta Air Lines and Alaska Air also emerged, with earnings growth expectations of nearly 70% and 26%, respectively. Elsewhere in the travel group, Expedia projects earnings growth of 31%. And despite the woes surrounding CEO Elon Musk and his 37% plunge in December, several Wall Street analysts see a buy opportunity in Tesla in 2023 and have reiterated buy recommendations for the past two weeks. If the analysts are right, investors in the stock can expect earnings growth of about 30% and a 94% rise in the stock price this year.
https://www.cnbc.com/2023/01/14/earnings-stars-stocks-most-likely-to-see-biggest-2023-profit-growth.html Stocks will most likely see the biggest earnings growth in 2023
