4 Technology Stocks Poised to Beat Earnings Estimates in Q4

The technology sector saw growth in the fourth quarter of 2024, driven by strong adoption of Artificial Intelligence (AI) and machine learning, as well as Generative AI (GenAI).The sector is riding on the ongoing digitalization wave. The rapid adoption of cloud computing, 5G, the Internet of Things, wearables, headsets supporting augmented and virtual reality technologies, drones, robotics, cybersecurity, blockchain and quantum computing is expected to have aided sector participants.A number of technology companies are set to report their earnings results over the next couple of weeks. We have picked four technology stocks — BILL Holdings BILL, Twilio TWLO, AMETEK AME and DoorDash DASH — which are well-poised to beat earnings estimates this season.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Technology Stocks Riding on AI Boom, InvestmentsAI demand is escalating, and that has increased the need for data center capacity expansion. Leading cloud computing providers like Amazon, Alphabet, Microsoft and Meta Platforms have multi-year investment plans to support greater cloud capacity. The advent of GenAI has further attracted investments.Large Language Models, which form the backbone of GenAI, require significant computational power to process massive amounts of data. This requires massive investment in chips, particularly graphics processing units (GPUs), and energy.Microsoft-backed OpenAI is estimated to have spent close to $3 billion on training modelsand data in 2024, per data from DeepLearning.ai.META spent $39.23 billion on capital expenditures in 2024 and now plans to spend between $60 billion and $65 billion in capital expenditures in 2025 due to its ongoing efforts to support GenAI capabilities.Growing GPU Demand to Boost SemiconductorsThe growing proliferation of GenAI has boosted the demand for GPUs, benefiting semiconductor companies.Per the Semiconductor Industry Association data, semiconductor sales in November 2024 were $57.8 billion, up 20.7% year over year and 1.6% month-over-month. For 2024, sales are estimated to be $626.9 billion, increasing 19% over 2023. For 2025, global sales are projected to increase 11.2% to hit $697.2 billion.Moreover, the PC segment witnessed growth in the fourth quarter of 2024. IDC estimates 68.9 million sold unitsin the fourth quarter of 2024, up 1.8% year over year. In contrast, Gartner estimates shipments of 64.4 million units, up 1.4% year over year.Despite growing concern about tariffs, PC shipment is expected to benefit from the ongoing upgrade cycle as support for Windows 10 ends in October 2025 and growing demand for AI-enabled PCs.How to Pick Earnings Estimates Beating Stocks?Findingtechnology stocks with the potential to beat earnings estimates can be daunting. Our proprietary methodology, however, makes it fairly simple.You could narrow down the list of choices by looking at stocks that have the combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise with their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.Our research shows that for stocks with this combination of ingredients, the odds of a positive earnings surprise are as high as 70%.Top BetsSan Jose, CA-based BILL Holdings has an Earnings ESP of +29.71% and currently sports a Zacks Rank of 1.BILL’s second-quarter fiscal 2025 results are expected to have benefited from strong momentum across its Spend & Expense solution as well as accelerating subscription and transaction fees. The company is also benefiting from an expanding small and medium business clientele. BILL is scheduled to report its second-quarter fiscal 2025 results on Feb. 6. The Zacks Consensus Estimate for earnings has been steady at 48 cents per share over the past 30 days. BILL Holdings, Inc. Price and EPS Surprise BILL Holdings, Inc. price-eps-surprise | BILL Holdings, Inc. Quote San Francisco-based Twilio currently has an Earnings ESP of +3.28% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is set to report fourth-quarter 2024 results on Feb. 13. The consensus mark for earnings has increased by a couple of cents to $1.02 per share over the past 30 days and indicates 18.6% growth over the figure reported in the year-ago quarter.TWLO has been benefiting from accelerated digital transformations amid a growing hybrid working trend. Its selective acquisitions and strategic investments in businesses and technologies are enhancing its product portfolio and fortifying its global presence. These factors are expected to have driven top-line and earnings growth in the to-be-reported quarter.Twilio Inc. Price and EPS Surprise Twilio Inc. price-eps-surprise | Twilio Inc. Quote  Berwyn, PA-based AMETEK is scheduled to report its fourth-quarter 2024 results on Feb. 4. The company has an Earnings ESP of +0.54% and a Zacks Rank #2.AMETEK has been benefiting from solid momentum across the Electromechanical Group, driven by strong contributions from Paragon Medical and Bison Engineering acquisitions. Strength in the Electronic Instruments Group segment on the back of benefits from Virtek Vision International, Navitar, Alphasense, Magnetrol International, and Crank Software buyouts is noteworthy. These factors are expected to have driven the top and bottom lines in the to-be-reported quarter.The Zacks Consensus Estimate for earnings has been steady at $1.84 per share over the past month and suggests 9.52% growth over the figure reported in the year-ago quarter.AMETEK, Inc. Price and EPS Surprise AMETEK, Inc. price-eps-surprise | AMETEK, Inc. Quote San Francisco-based DoorDash is set to report fourth-quarter 2024 results on Feb. 11. The company has an Earnings ESP of +35.67% and a Zacks Rank of 2.DoorDash is benefiting from an expanding clientele that has enhanced its order volume. An expanding partner base that includes Ibotta, Walmart Canada, Wegmans Food Markets, Lyft, Max, and JPMorgan Chase & Co.’s U.S. consumer and commercial banking division, Chase, has significantly broadened DoorDash’s reach and enhanced its service offerings.The consensus estimate for its earnings has climbed a penny to 35 cents per share over the past 30 days. DASH reported a loss of 39 cents per share in the year-ago quarter.DoorDash, Inc. Price and EPS Surprise DoorDash, Inc. price-eps-surprise | DoorDash, Inc. Quote5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMETEK, Inc. (AME): Free Stock Analysis Report Twilio Inc. (TWLO): Free Stock Analysis Report BILL Holdings, Inc. (BILL): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks