3 Top-Ranked Stocks to Buy After Strong Earnings Beats: KEYS, BMA & ZIM

Better-than-expected earnings can be a compelling catalyst when strong quarterly results are paired with favorable earnings revisions, improving guidance, or attractive fundamentals.

That combination is showing up in Keysight Technologies (KEYS), Macro Bank BMA), and ZIM Integrated Shipping Services ZIM) stock.

All three recently exceeded earnings expectations, with KEYS and BMA sporting a Zacks Rank #2 (Buy) and ZIM landing the coveted Zacks Rank #1 (Strong Buy).

Keysight Technologies' AI Momentum Drives Record Results

Providing electric design and test instrumentation systems, Keysight delivered standout results for its fiscal third quarter with adjusted EPS surging 78% year over year to a quarterly peak of $3.07, and topping the consensus estimate of $2.46 by nearly 25%.

Revenue climbed 36% to a record $1.84 billion, exceeding Q3 expectations by more than 5%.

AI infrastructure has become an increasingly powerful growth driver. Keysight's Communications Solutions Group revenue jumped 43% YoY to $1.35 billion, including 56% growth in commercial communications, while wireline orders more than doubled. Orders topped $2 billion for a second consecutive quarter as demand remained strong across AI infrastructure, next-generation communications, semiconductors, and defense.

More importantly, momentum appears to be carrying into Q4. Management expects revenue of $1.93-$1.95 billion and adjusted EPS of $3.34-$3.40, with both figures coming in above Wall Street’s expectations.

With analyst estimates likely to keep rising, Zacks projections already call for Keysight’s fiscal 2026 revenue and earnings to be up 32% and roughly 44%, respectively. 

Plus, Keysight’s 30X forward earnings multiple isn't an overly stretched premium to the benchmark S&P 500 and is noticeably beneath its Zacks Electronics-Measuring Instruments Industry average of 45X. 

Macro Bank's Profitability and Capital Strength Stand Out

Macro Bank, the leading bank in Argentina, also delivered a much better-than-expected quarter, with Q2 adjusted EPS reaching $2.29, rising 17% YoY and crushing expectations of $1.59 per share by 44%.

This came as Q2 sales increased 26% to $1.05 billion and topped estimates of $864.78 million by 22%.

The balance sheet remains another encouraging component of BMA's investment case. Total financing increased 3% sequentially, while deposits were up 4% from a year ago. Furthermore, Macro Bank ended Q2 with a very strong 28% Tier 1 capital ratio, underscoring its balance sheet strength and ample cushion above global regulatory standards, while liquid assets equaled a noteworthy 74% of deposits.

Management also raised its full-year adjusted return on equity (ROE) outlook to roughly 12% from 8%, although weak consumer demand prompted the bank to reduce its real loan-growth forecast to a range of 2%-5%.

That said, what also strengthens the investment case is that BMA shares are trading at a reasonable 11X forward earnings multiple with a very generous 7.48% annual dividend yield. 

Along with a Zacks Rank #2 (Buy), BMA currently earns an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum,

ZIM Posts a Massive Q2 Earnings Surprise

Among these three top-rated stocks, ZIM delivered the most dramatic earnings surprise. The global container shipping company delivered adjusted Q2 EPS of $0.64, crushing expectations that called for a loss of $0.10 per share and soaring 236% from $0.19 in the comparative period.

Revenue increased over 9% to $1.78 billion and topped Q2 estimates of $1.62 billion by more than 9% as well.

Improving freight economics helped drive the rebound. ZIM carried 922,000 TEUs during Q2, up 3%, while its average freight rate increased roughly 8% to $1,590 per Twenty-Foot Equivalent Unit (TEU).

More intriguingly, adjusted EBITDA increased 4% to $491 million, adjusted net income surged to $77 million from $24 million a year ago, and ZIM generated a robust $386 million in free cash flow. The company also held a $2.46 billion net cash position when excluding lease liabilities.

ZIM now expects full-year adjusted EBITDA of $2-$2.4 billion and adjusted EBIT of $700 million-$1.1 billion, with substantially stronger second-half performance anticipated. 

Adding another catalyst, Hapag-Lloyd's pending acquisition of ZIM would pay shareholders $35 per share in cash, which is nearly 25% above its current stock price and is targeted to close in Q4, although regulatory approvals are still required.

Notably, ZIM is trading at 8X forward earnings and, in addition to its strong buy rating, has an overall "A" Zacks Style Scores grade. 

Bottom Line

Keysight Technologies arguably offers the strongest underlying growth story of these top-rated stocks, as surging AI infrastructure investment is driving higher demand for its testing and design solutions. Macro Bank provides a more value-oriented opportunity backed by improving profitability and substantial capital reserves, while ZIM's earnings rebound, cash generation, and pending $35-per-share acquisition provide a unique event-driven setup.

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This article originally published on Zacks Investment Research (zacks.com).

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