IBD Screen Of The Day: Growth Stocks Showing Rising Profit Estimates Include Fidelity National Stock

Today’s IBD Screen Of The Day column focuses on top 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.


Fidelity National Financial (FNF) and Life Storage (LSI) are two stocks on this list that feature strong fundamental and technical performances.

Analyzing Fidelity National Financial

Fidelity stock is in a very good position for interested buyers. Not only is the stock trading in a buy zone, but it also is expected to report rising profits for its upcoming September-ended quarter. The firm recently reported strong second-quarter earnings on Aug. 3.

Fidelity National is multinational financial services company. The Boston-based firm offers financial planning, retirement plans, wealth management, brokerage services, specialty insurance and more.

Fidelity stock recently broke out into the buy zone of a new cup base, according to MarketSmith analysis, with an ideal buy point of 48.08. The buy area tops out at 50.48. The relative strength line on this growth stock has been moving higher since early August and is trading near its highs amid the recent bullish action.

Fidelity has gained as much as 26% so far in 2021. The company maintains a strong IBD Composite Rating of 96. The growth stock’s year-over-year EPS has grown by an average 105% over the past three quarters. This well exceeds IBD’s CAN SLIM requirements for top growth stocks.

Earnings are expected to show further year-over-year growth for the upcoming September-ended quarter. But this bottom-line growth is expected to come in significantly lower than previous quarters, rising only 9%.

Life Storage Among Top REITs

Life Storage is currently slightly above its buy area from the most recent buy point of a three-weeks-tight pattern which formed the week of Aug. 6 through the week of Aug. 20. The RS line has been trending consistently higher since May of this year and is nearing new highs. The stock has been coasting mostly above its 50-day line since late 2020 — quite a long stretch and a bullish sign for Life Storage.

Life Storage is a REIT that acquires, owns and manages self-storage properties across the U.S. The firm focuses on properties located in eastern and midwestern states. The stock has a near perfect Composite Rating of 98 out of 99.

The growth stock has shown earnings strength over the past few quarters with year-over-year gains in the low double digits. According to IBD data, the company is expected to show FFO (funds from operations) growth of 13% in the upcoming September-ended quarter, which is below the 20% minimum we like to see for CAN SLIM stocks. Still, Life Storage stock is worth watching.

Shares have risen 55% so far this year and the firm’s CEO Joe Saffire is optimistic about the company’s future.

“We continue to grow occupancy and drive revenue growth while controlling costs,” said Saffire in a recent news release. “We are excited about our new joint venture, which is adding 17 class A lease-up stores to our platform and providing further opportunity for growth.”

Furthermore, Life Storage has at least nine straight quarters of increasing mutual fund ownership. Doing well in this metric is key for top growth stocks.

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

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