In this article, we will list the 5 Stocks with Best Earnings Growth for the Next 3 Years. Please visit 10 Stocks with Best Earnings Growth for the Next 3 Years if you would like to see the extended list and the methodology behind it.
5. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 132
On June 15, Eli Lilly and Company (NYSE:LLY) shared new data from the Phase 1 AJX-101 study. The study showed that an investigational type II JAK2 inhibitor delivered an “encouraging” safety profile, demonstrating clinical activity in patients living with myelofibrosis who have failed a type I JAK2 inhibitor.
The therapy is aimed at selectively binding the type II conformation of the JAK2 kinase, thus providing improved efficacy over current solutions. It will also offer a new option for patients who develop resistance to type I JAK2 inhibitors. This addition follows the completion of the acquisition.
Image by MayoFi from Pixabay
Earlier on June 9, Jefferies lifted the price target on Eli Lilly and Company (NYSE:LLY) to $1,350 from $1,330 and reiterated a Buy rating. This comes after the company reported full data from retatrutide’s TRIUMPH-1 obesity study and TRANSCEND-T2D-1 study. Despite some safety concerns, which the firm believes are manageable, the retatrutide’s overall profile “will be difficult to beat,” the firm said. Indeed, LLY is among the stocks with the best earnings growth for the next 3 years.
Eli Lilly and Company (NYSE:LLY) is an Indiana-based company specializing in human pharmaceutical products. Founded in 1876, the company offers products for cardiometabolic health, oncology, immunology, and migraine prevention.
4. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 133
On June 4, Barclays lifted the price target on ASML Holding N.V. (NASDAQ:ASML) to EUR 1,900 from EUR 1,575 and reaffirmed an Overweight rating. The analyst believes that the company’s demand continues to expand, saying that hiring data strengthens capacity, with the ramp-up already underway at key supplier Zeiss. Having said that, the firm’s forecasts surpass consensus estimates for 2027 and 2028.
Didier Scemama, an analyst at BofA, views the company’s extreme ultraviolet lithography capacity to extend beyond 90 units by 2027. This is mainly because of lead time and assembly efficiencies. While seeing China demand rebound in the next year, the analyst boosted the price target on ASML Holding N.V. (NASDAQ:ASML) to EUR 1,921 from EUR 1,710 and reiterated a Buy rating on the same day.
Although the company has downside potential based on the 1-year median price target, ASML Holding N.V. (NASDAQ:ASML) has continuously outperformed the benchmark over the last five years. This, along with its strong ROE (ttm) of 52.24%, makes ASML one of the stocks with the best earnings growth for the upcoming 3 years.
ASML Holding N.V. (NASDAQ:ASML) is a Netherlands-based lithography solutions provider for advanced semiconductor equipment systems. Founded in 1984, the giant’s core offerings include lithography, metrology, and inspection systems.
3. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 138
On June 15, Applied Materials, Inc. (NASDAQ:AMAT) unveiled two new chipmaking systems to address a new challenge in leading-edge semiconductor manufacturing. The systems will not only help achieve precision processing in deep and narrow 3D structures, but will also expand scaling in logic and memory.
With AI computing on the rise, the market has shifted towards advanced 3D device architectures. This includes gate-all-around transistors and high-layer-count 3D NAND. The conventional deposition and etch processes lack the ability to distribute materials evenly as features become deeper and narrower in vertical structures. This is where the company’s newly launched systems come in.
As said by Dr. Prabu Raja, President of the Semiconductor Products Group,
“With our latest deposition and selective etch systems, we are delivering differentiated capabilities that help customers overcome critical scaling barriers and accelerate the next wave of innovation in logic and memory.”
Despite its 1-year downside potential based on the median price target, Applied Materials, Inc. (NASDAQ:AMAT) has a solid quarterly earnings growth (YoY) of 31.30%. The company has continuously outperformed the S&P 500 over the past five years. This reinforces its position among the stocks with the best earnings growth for the next 3 years.
Applied Materials, Inc. (NASDAQ:AMAT) is a California-based provider of materials engineering solutions, equipment, services, and software. Founded in 1967, the company operates through Semiconductor Systems and Applied Global Services segments.
2. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 153
Ivan Feinseth, an analyst at Tigress Financial, elevated the price target on Uber Technologies, Inc. (NYSE:UBER) to $115 from $110 on June 12. In a research note, the analyst said that the company’s long-term potential is supported by scaled network effects in mobility and delivery, in addition to opportunities in high-margin segments. The firm maintains a Buy rating on the shares.
What makes the case stronger for Uber Technologies, Inc. (NYSE:UBER) is its GO-GET strategy, which is based on capital-light partnerships and an AI-driven platform, the firm highlighted, adding that this approach will support Uber One engagement. The company is also engaged in boosting unit economics, scaling Uber AI Solutions, and driving AI-powered product innovation, Tigress Financial outlined.
Overall, 88% of analysts are bullish on the company, with 11% neutral, and the remaining 2% bearish. With a Return on Equity (ttm) of 35.31%, Uber Technologies, Inc. (NYSE:UBER) has secured a spot in our list of stocks with the best earnings growth for the next 3 years.
Uber Technologies, Inc. (NYSE:UBER) is a California-based technology company that operates a global platform for ride-hailing, food delivery, and freight logistics services. Founded in 2009, the company has three main segments: Mobility, Delivery, and Freight.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 154
On June 11, TheFly reported that Daiwa significantly lifted the price target on Micron Technology, Inc. (NASDAQ:MU) to $1,600, up from $700, and reaffirmed a Buy rating. This implies an upside potential of nearly 49% from the current level.
On the same day, Wolfe Research raised its forecasts for the company to better reflect an approximately 45% price hike in fiscal Q3, in addition to higher pricing throughout the current year. The firm also raised CY27 estimates due to increased HBM pricing. Wolfe Research now expects $226.5 billion in revenue and $135 in EPS in 2027. No wonder Micron Technology, Inc. (NASDAQ:MU) is among the stocks with the best earnings growth for the next 3 years.
According to the firm, suppliers and key customers are signing long-term agreements for available supply over the years ahead. As suppliers try to close the gross margin gap, HBM pricing is set to rise, Wolfe Research noted. With that said, the firm elevated the price target on Micron Technology, Inc. (NASDAQ:MU) to $1,250 from $550 and maintained an Outperform rating.
Micron Technology, Inc. (NASDAQ:MU) is an Idaho-based company specializing in memory and storage products. Incorporated in 1978, the company operates through four segments, including the Cloud Memory Business Unit and Core Data Center Business Unit.
While we acknowledge the potential of MU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MU and that has 100x upside potential, check out our report about the cheapest AI stock.
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