By JUAN CARLOS ARANCIBIA

As the stock market extends its rebound, it's important to watch the stocks most loved among equity analysts. Netflix (NFLX) and GE Aerospace (GE) are two of the seven best stocks where investors can find magnificent profit growth prospects.

Netflix Among Best Stocks For Profit Growth

Of 54 analysts covering Netflix, 38 have buy or overweight ratings on the video streaming service. The consensus estimate for 2025 earnings is $25.55, a 29% increase from last year, according to FactSet.

UBS analyst John Hodulik raised the price target on Netflix to 1,450 from 1,150 Wednesday and kept a buy rating. "We believe secular trends and competitive dynamics remain supportive of Netflix's ability to drive stronger monetization and operating leverage," the analyst said in a note to clients.

On April 17, the company's first-quarter sales and earnings topped expectations. Earnings per share rose 25% as sales climbed 12.5%. Executives said Netflix hasn't been disrupted much at all by trade and tariff uncertainty.

Its EPS Rating is 97 and the Composite Ratings is a highest-possible 99. Both are best in its industry group.

The stock broke out of a double-bottom base with a 998.70 buy point April 21 and is extended past the buy point. The stock is up more than 20% from that entry, meaning that investors can take some profits.

Axon Enterprise Breaks Out

Of 18 analysts covering Axon Enterprise (AXON), 83% have buy ratings and the rest hold ratings. Analysts expect the maker of Taser stun guns, body cameras and other police equipment will see its fast profit growth slow, however.

Analysts expect EPS to rise 4% this year, after gains of 89% and 44% the past two years, according to MarketSurge. Still, Axon has a highest-possible EPS Rating of 99. It is the highest in the security and safety industry group, and Axon also has the best Composite Rating in the group.

The stock on May 13 broke out above the 715.99 buy point of a cup base in active trading. Axon gapped up May 8 after the company beat profit and sales expectations for the first quarter. The company also raised its guidance.

Broadcom Tops Buy Point

Analysts expect Broadcom's (AVGO) earnings to increase 36% in the fiscal year ending in October,  to $6.60 a share. There's broad consensus among analysts: 89% of the 44 who follow the company have buy ratings.

The chipmaker has a 99 EPS Rating, after reporting accelerating gains of 7%, 18%, 28%, 45% and 44%, according to MarketSurge. Broadcom reported earnings June 5, edging by analysts' consensus estimates.

The stock topped a 251.88 buy point June 3 and is in buy range to 264.47. Shares jumped after Broadcom announced it began shipping its latest data-center switch chip, which has double the bandwidth of any Ethernet switch currently on the market.

The Tomahawk 6 switch is designed for data centers running clusters of artificial intelligence processors.

GE Aerospace Earnings

GE Aerospace has an almost perfect 98 EPS Rating, which ranks first among 71 stocks in the aerospace and defense industry group. The stock sold off in early April as tariff worries swept through the stock market. But shares are at record highs and up 12% from a 214.21 buy point.

Of 22 analysts who cover the jet engine maker, 77% have buy or outperform ratings. The average target share price is 246.63; the stock currently trades around 239. Analysts expect full-year EPS to climb 21% to $5.57 a share.

The company on April 22 reported quarterly earnings that topped expectations. GE said it took measures to mitigate tariff impacts, which allowed it to maintain its full-year outlook. First-quarter earnings jumped 60%. On May 14, it announced a deal with Qatar Airways for 400 jet engines.

Arista Owns Top EPS Rating

Arista Networks (ANET) has a 99 EPS Rating, the highest of 15 stocks in the cybersecurity industry group after reporting EPS gains of 33%, 30%, 25% and 30% the past several quarters.

The consensus analyst estimate for 2025 earnings is $2.56 a share, a 13% increase. That's slower than the 52% and 31% gains the company posted the previous two years. Of 28 analysts who cover Arista, 22 have the highest rating.

The network technology stock beat estimates with its Q1 results. New orders continued to rebound amid demand for artificial intelligence infrastructure. The stock is trying to regain its 200-day moving average as it recovers from a 55% decline.

Arista stock fell nearly 7% May 29 after Nvidia (NVDA) disclosed that Meta Platforms (META) and Alphabet's (GOOGL) Google chose it to provide Ethernet networking gear for data centers. Shares have since bounced back.

Meta Platforms

Meta Platforms (META), the parent company of Facebook and Instagram, posted earnings gains of 73%, 37%, 50% and 37% the past four quarters. That's helped give the stock a 96 EPS Rating. Its Composite Rating is 96.

Of 71 analysts who cover Meta, 87% have top ratings. The consensus analyst estimate for this year is $25.57 a share, an increase of 7%. EPS increased 73% and 61% the previous two years.

Meta stock broke out of a cup-with-handle base on June 2 and remains in buy range from the 662.67 buy point.

The company reportedly plans to make a multibillion investment in the startup Scale AI, which provides data labeling services that help with the training and production of large-language models.

Chefs' Warehouse

Chefs' Warehouse (CHEF) has the highest EPS Rating (95) of 11 stocks in the miscellaneous food preparation industry group.

That reflects accelerating EPS gains of 9%, 17% and 67% the past three quarters. That's well above the three-year earnings growth rate of 20%. Sales growth, however, remains in single digits.

Analysts are unanimously bullish on the stock, with all seven giving a buy recommendation. The consensus EPS estimate for this year is $1.73, an 18% increase, according to FactSet.

The food distributor specializes in serving premium restaurants, hotels and fine-food stores. It supplies cheeses, chocolates, meats, cooking oils and other foods, some which are imported.

The stock is forming a cup-with-handle base with a 66.26 buy point. Shares tried to break out from a 65.39 handle entry but stumbled. Chefs' Warehouse has a 94 IBD Composite Rating.

Universe of S&P 500, S&P 400 and S&P 600 Stocks

To select companies for this list, IBD used a combination of FactSet data and IBD ratings.

The screening began with the S&P Composite 1500 index, which aggregates the S&P 500, S&P MidCap 400 and S&P SmallCap 600 companies. This index is a good representation of the U.S. stock market while eliminating less-liquid and lower-quality names.

The next layer of screening flagged companies showing FactSet consensus ratings of overweight or buy, the most bullish views. To further refine the list, we screened for stocks with strong analyst consensus earnings growth estimates for the current fiscal year. In the final cut, we selected stocks with high Composite Rating and Relative Strength Ratings.

The final seven best stocks for outstanding earnings growth and estimates overlap with some Magnificent Seven stocks.

To find other ideas for the best stocks to buy or watch, check out IBD Stock Lists and other IBD content.

YOU MAY ALSO LIKE:

Why This IBD Tool Simplifies The Search For Top Stocks

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today

This article was first published on IBD