4 Stocks Growing Earnings by More Than 50%

NYSE: SQ | Square Inc. Cl A News, Ratings, and Charts

SQ – Stocks that grow earnings by more than 50% typically see strong price gains. That has certainly been the case with Square, Inc. (SQ), Twilio, Inc. (TWLO), Sunrun, Inc. (RUN), and Azure Power Global, Ltd. (AZRE). Learn what’s in the store for these four stocks.

Growth in earnings is a powerful indicator of a company’s financial strength. A company with an earnings growth trend is much more likely to see gains in its stock price as well. This year has been difficult for most companies due to the challenges posed by the pandemic. However, there are certain standout stocks that have not only just sustained their prior performance levels, but have also modified their business models to capitalize on the rapidly changing consumer behavior triggered by the pandemic. Based on their strong footing in the “new normal” economy, analysts expect these companies to witness significant earnings growth in the upcoming quarters and years ahead.

A large number of these stocks are from the technology sector, which has significantly outperformed the rest of the market so far this year, and are well positioned to see substantial earnings growth. There are some companies from other sectors as well that have also delivered stellar earnings performance, and are projected to see continued huge earnings growth due tobecause of the underlying strength in their business models.

Square, Inc. (SQ), Twilio, Inc. (TWLO), Sunrun, Inc. (RUN), and Azure Power Global, Ltd. (AZRE) have seen astonishing price gains year-to-date, and their earnings growth potential should help them see further momentum in their stock prices.

Square, Inc. (SQ)

SQ develops and delivers point-of-sale services globally. The Square Register system helps businesses with inventory, sales reports, and digital receipts. It also facilitates feedback and provides analytics. SQ’s stock has gained 201.5% so far this year.

For the second quarter that ended June 2020, the company reported an EPS of $0.18, beating the consensus estimate by 460%. The company’s EPS is expected to increase 114.3% in 2021 and at a rate of 35.8% per annum over the next five years. SQ’s revenue is expected to grow 227.6% this year and 27.1% in 2021.

SQ is working on launching its own loan company in 2021 that will provide loans and direct deposits through its Cash app. The company has also announced On-Demand Pay, which will allow users to transfer up to $200 to the Cash App for free or to a linked debit card for a small fee.

How does SQ stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Peer Grade

A for Industry Grade

A for Overall POWR Rating

The stock is also ranked #2 out of 211 stocks in the Financial Services (Enterprise) industry.

Twilio, Inc. (TWLO)

TWLO has a cloud communications platform that allows users to build and operate communications functionality within software applications. The company operates with a pay-as-you-go model in the United States and globally. The company’s stock has gained 231.6% so far this year.

For the second quarter that ended June 2020, TWLO reported an EPS of $0.09, delivering an earnings surprise of 200%. The company’s EPS is expected to increase 118.2% in 2021 and at a rate of 20.5% per annum over the next five years. TWLO’s revenue is expected to grow 41.3% in 2020 and 27.4% in 2021.

TWLO has recently acquired Segment, which is a customer data platform, for $3.2 billion. The company is also providing communications support for contract tracing towards the effort to stop the spread of the coronavirus.

It’s no surprise that TWLO is rated a “Strong Buy” in our POWR Ratings system, with a grade of “A” in Trade Grade, Buy & Hold, and Peer Grade. In the 11-stock Software – SAAS industry, it is ranked #1.

Sunrun, Inc. (RUN)

RUN develops, produces, and markets solar energy systems for residential use. The company’s products also help the maintenance of installed solar energy systems. RUN’s stock has gained 364.9% so far this year.

RUN’s EPS is expected to increase 10% next quarter and 400% in 2021. The company’s revenue is expected to grow 3% in the next quarter and 45.8% in 2021.

RUN has recently acquired a rival solar energy company, Vivint Solar, for $22 billion. This move establishes RUN as the leader in the residential solar energy space in the United States with an estimated 500,000 customers. RUN has also signed contracts with three CCAs to provide clean energy to approximately one million homes in the Bay area. RUN has also partnered with CHANEL to provide access to solar energy to nearly 30,000 low-income households in California.

In our POWR Ratings, RUN has a grade of “B” in Trade Grade and Industry Rank. In the 15-stock Solar industry, it is ranked #7.

Azure Power Global, Ltd. (AZRE)

AZRE produces and distributes solar-based electricity. The company also offers solar energy installations. The company primarily focuses on selling to commercial outfits, government utilities, and independent industries. AZRE’s stock has gained 118.7% so far this year.

For the quarter that ended June, AZRE reported an EPS of $0.01, beating the consensus estimate by 105.3%. The company’s EPS is expected to increase 110.8% in 2021 and at a rate of 108% per annum over the next five years. AZRE’s revenue is expected to grow 22.7% in 2021 and 42.2% in 2022.

AZRE has secured a letter of award to provide 2GW of solar power along with the Solar Energy Corporation of India. The combined capacity for the project is 4GW which can be built anywhere in India. In the quarter that ended in June, the company’s operating energy capacity increased 12% as compared to the same period last year. Revenue increased 16% during the same period.

AZRE’s strong fundamentals are reflected in its POWR Ratings. It has a “Buy” rating with an “A” in Trade Grade. In the 15-stock Solar industry, it is ranked #6.

Want More Great Investing Ideas?

Top 11 Picks for Today’s Market

7 Best ETFs for the NEXT Bull Market

5 WINNING Stocks Chart Patterns


SQ shares were trading at $187.47 per share on Friday afternoon, down $1.13 (-0.60%). Year-to-date, SQ has gained 199.66%, versus a 10.07% rise in the benchmark S&P 500 index during the same period.


About the Author: Aaryaman Aashind


Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
SQGet RatingGet RatingGet Rating
TWLOGet RatingGet RatingGet Rating
RUNGet RatingGet RatingGet Rating
AZREGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Why Do Most Investors Fail?

Most individual investors underperform the stock market (SPY). Sadly 85% of mutual fund managers also come up short of the mark. So what does work? Quant investing which now makes up more than 50% of daily trading activity. However, these method seem out of reach for most investors. That is all about to change as I will show 5 ways to apply quant investing models to help you beat the market going forward. Read on for more...

:  |  News, Ratings, and Charts

2 Recent IPOs to Buy on the Dip

IPOs are always an interesting asset class as there is considerable upside but it comes with more risk. Recently, IPOs have underperformed, but it could be an opportunity to add two high-quality ones - ZIM Integrated Shipping Services Ltd. (ZIM) and ZipRecruiter (ZIP).

:  |  News, Ratings, and Charts

4 Value Stocks to Load Up on During the Market Sell-Off

Concerns over the spread of the COVID-19 Delta variant in several countries are expected to keep the stock market on edge. However, because a long and deep market correction is not expected, it could be wise to bet on promising stocks that are now trading at discounts. For example, Honda Motor (HMC), Hill-Rom Holdings (HRC), Foot Locker (FL), and Boise Cascade (BCC) look undervalued at their current price levels. So, we think these stocks could be solid bets now. Let’s discuss.

:  |  News, Ratings, and Charts

3 Unstoppable Tech Stocks to Buy on Dips

Growth stocks have taken a backseat to cyclical names this year, but that may be about to change. The Fed appears to be sticking with its dovish monetary policy and rising cases of COVID-19 could lead to a return to lockdowns.This presents a great buying opportunity to pick up shares of tech stocks like Teradata Corporation (TDC), HP Inc. (HPQ), and Broadcom Inc. (AVGO).

:  |  News, Ratings, and Charts

4 Value Stocks to Load Up on During the Market Sell-Off

Concerns over the spread of the COVID-19 Delta variant in several countries are expected to keep the stock market on edge. However, because a long and deep market correction is not expected, it could be wise to bet on promising stocks that are now trading at discounts. For example, Honda Motor (HMC), Hill-Rom Holdings (HRC), Foot Locker (FL), and Boise Cascade (BCC) look undervalued at their current price levels. So, we think these stocks could be solid bets now. Let’s discuss.

Read More Stories

More Square Inc. Cl A (SQ) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All SQ News