Top 10 US Stocks with 3-Month Earnings Growth on Improving Net Worth: Berenberg

Analysts’ forecasts for earnings growth at large U.S. companies have shown a marked improvement recently, with net profit growth moving into positive territory, Berenberg said.

The firm updated its three-month net upgrade/downgrade rates for U.S., European, British and Japanese stocks on Friday as the H1 2024 reporting season progresses. Net update balances for US companies (SP500)(SPYEuropean and British stocks have been in the black over the past month or two, Berenberg equity analysts Jonathan Stubbs and Leoni Externest said in a note.

US earnings growth was 11.7% year-on-year on a 12-month basis, on an upward trend since summer 2023. “US earnings could support gains for US stocks in the year ahead, but valuations mean the bar is high for extending global leadership,” the analysts said in a note.

The current net update is 6% for the S&P 500 (SP500)(IVV)(VOO); 5.9% for Europe’s STOXX 600 Index; 1.2% for the U.K.’s FTSE 350 Index; and 13.9% for Japan’s Nikkei 225 (NKY:IND). Analysts say Japan has been in net update territory for more than a year.

Berenberg has compiled a list of the 10 best U.S. stocks based on 12-month net income. Here is a chart of these leaders:

Here is a list of companies and their stock performance over the past 12 months:

• Berkshire Hathaway (BRK.B)(BRK.A)- 12-month profit: +25.2%
• Smurfit Westrock (OTCPK:SMFTF) – 12 month profit: +24.6%
• Mikron (MU) – profit over 12 months: +59.5%
• Seagate (STX) – 12 month profit: +79%
• Western Digital (WDC) – 12-month profit: +72%
• Bristol-Myers Squibb (BMY) – 12-month loss: -20.4%
• SBA Comms. (SBAC) 12-month loss: -5.2%
• Newmont (NEM) – 12 month profit: +7.8%
• Vistra (VST) – 12 month profit: +150.3%
• EQT (EQT) – 12-month loss: -17.4%