Finding growth in this stock market hasn’t been easy. Yet there are some pockets of opportunity for investors in the coming year. Inflation and rising interest rates have put pressure on earnings, with the estimated year-over-year growth rate for the S & P 500 in 2022 just 5.1%, according to FactSet. That is below the trailing 10-year average annual earnings growth rate of 8.5%. Most of that growth came in the first half of 2022. The index is projected to report an earnings decline of 2.8% for the fourth quarter. Next year isn’t much better, with the S & P 500’s growth forecast at 5.4%. However, there are certain names that are expected to outperform. To find those companies, CNBC Pro screened for stocks that have expected earnings-per-share growth of at least 20% in 2023. They also have an upside of 20% or more to the average analyst price target and have buy ratings from at least 60% of the analysts covering the stocks, according to FactSet. They also have a 2022 earnings per share estimate of 25 cents or more. T-Mobile has the highest expected earnings growth for next year, coming in at 232%. Some 83% of analysts covering the stock have a buy rating. Shares gained more than 20% so far this year and have 25.7% upside to the average price target, per FactSet. EQT has expected bottom-line growth of 142%, the second-highest on the list. The natural gas company has already surged more than 75% year to date, but is down 17% in the last three months. It has another 54% upside, according to the average analyst price target on FactSet. The energy sector has enjoyed an upswing this year and is expected to be the largest contributor to earnings growth for the S & P 500 in 2022, according to FactSet. EQT, which is facing regulatory delays on its planned $5.2 billion acquisition of THQ Appalachia, was recently upgraded to outperform from peer perform by Wolfe Research. Nearly 70% of analysts covering the stock rate it a buy. Also on the list is Delta Air Lines , which has an expected earnings growth of 65% for next year, per FactSet However, CEO Ed Bastian recently said it expects adjusted earnings for 2023 to double thanks to robust travel demand. Delta is also forecasting a 15%-20% increase in revenue in 2023 from this year and a jump in free cash flow from more than $2 billion next year to more than $4 billion in 2024. Delta shares have nearly 46% upside to the average analyst price target on FactSet and 75% of analysts covering the stock rate it a buy. Live Nation Entertainment, meanwhile, has an expected earnings growth of nearly 50% in 2023. Shares of the Ticketmaster parent recently took a hit after it bungled the sales of Taylor Swift concert tickets . The House Energy and Commerce Committee recently asked the company to clarify its ticketing process for the tour and provide a list of actions it will take to provide better access to live entertainment in the future. Live Nation’s stock has nearly 42% upside to the average analyst price target and is rated a buy by 61% of the analysts covering it. Lastly, Citizens Financial Group is the only finance name to make the list. The bank has an expected 20.8% earnings growth for next year and nearly 21% upside to the average analyst price target. Some 63% of analysts covering the stock rate it a buy. — CNBC’s Michael Bloom contributed reporting.
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