IBD Screen Of The Day: Many Growth Stocks Show Rising Profit Estimates; Only One In A Proper Base

Today’s IBD Screen Of The Day column focuses on growth stocks showing rising profit estimates. It’s one of several powerful screens found in the IBD Stock Screener. This is a list of companies seeing their EPS estimates for the current quarter rising.


Darling Ingredients (DAR) is among stocks on this list featuring strong fundamental and technical performance. The stock is the only one in the screen forming a proper base. Many other stocks on the list are extended and above their 20% to 25% profit-taking targets.

Analyzing Darling Ingredients Stock

Darling Ingredients traded lower in today’s market but is roughly 6% away from a new 79.75 buy point, according to MarketSmith analysis. The newest base formed mostly above support at its 50-day moving average, which is a positive sign.

The relative strength line has been moving sideways since mid-March. But the stock maintains a Relative Strength Rating of 94, which shows strong price performance in recent months. Indeed, the stock has behaved well during its basing period.

Darling Ingredients has gained about 30% so far in 2021. The company maintains a near-perfect IBD Composite Rating of 98. It’s year-over-year EPS grew by 76% in the most recent quarter. This well exceeds IBD’s CAN SLIM requirement of 25%.

The cooking byproducts recycling company also shows a rising profit estimate for its June-ending quarter. According to IBD data, EPS is expected to rise 87% to 73 cents a share. Sales are expected to jump 26% to $1.07 billion.

Darling Ingredients reduces food waste by collecting and repurposing animal-based co-products and other natural materials that would otherwise be discarded. The stock is one to watch, especially with it’s strong IBD Ratings. The firm currently ranks No. 1 in the agricultural operations industry group.

Growth Stocks Hitting Profit Zones

Several stocks on the Rising Profit Estimates screen are trading above profit targets. This means it’s OK to take at least some profits on these trades. That’s especially true now that the stock market uptrend is under pressure, and investors should reduce exposure.

Both Equifax (EFX) and United Parcel Service (UPS) are more than 20% past their buy points.

Equifax broke out from a double-bottom base in early April. The stock is nearly 30% above the buy point, and much of that came on a single day. On April 22, shares surged 14% after a stronger-than-expected earnings report.

United Parcel Service has traded above its 20% profit goal for a couple of weeks. The company reported earnings on April 27, which boosted the stock out of the buy area from a 176.04 flat base.

Both Equifax and United Parcel Service show rising profit estimates for the quarter. Equifax is expected to report a year-over-year increase of 6% for the June-ended quarter while United Parcel Service EPS is projected to rise 30%.

Fortinet (FTNT), MasTec (MTZ), Agco (AGCO) and Equifax (EFX) are stocks that are well past 25% gains from their breakouts.

Follow Fox on Twitter at @foxonstocks for more analysis other growth stocks.

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