Image Source: PixabayGlancing at the Zacks Rank #1 (Strong Buy) list, the stocks of three iconic companies are standing out after they were able to exceed Q2 earnings expectations.Let’s take a quick peak and see why now is a good time to invest in these highly ranked stocks following their favorable quarterly results.1. Taiwan Semiconductor (TSM – Free Report)Year to Date Performance: +55%One of the most searched-for stocks on Zacks.com is Taiwan Semiconductor, the world’s largest integrated circuit foundry company.The chip giant appears to be an investor favorite for what has become a very promising outlook upon easing inflation.Taiwan Semiconductor says it continues to face inflation cost challenges including electricity charges but Q2 EPS of $1.48 beat expectations by 8% last Thursday while increasing nearly 30% from the comparative quarter.Validating investors’ peaked interest in the company’s increased profitability is that annual earnings are now expected to soar 23% in fiscal 2024 to $6.37 per share versus EPS of $5.18 last year. Plus, FY25 EPS projections call for another 27% growth with Zacks estimates at $8.12 per share.
Image Source: Zacks Investment Research2. GE Aerospace (GE – Free Report)Year to Date Performance: +34%GE is undoubtedly one of the most popular consumer appliance brands and its aviation growth into jet engine production has prompted the namesake change from General Electric to GE Aerospace.Reporting its Q2 results on Tuesday, GE stated it has the industry’s largest growing commercial propulsion fleet as the rotorcraft and combat engine provider of choice. Led by commercial and defense engines, aftermarket services now accounted for 70% of GE’s revenue. Furthermore, GE’s profitability suggests that the iconic industrial products company is heading in the right direction upon its transformation quest into the transportation sector.To that point, Q2 EPS of $1.20 crushed estimates of $0.97 per share by 24% and skyrocketed from $0.68 a share in the prior year quarter. More reassuring is that GE raised its EPS and free cash flow guidance for the year. Notably, GE is also expected to post earnings growth in the high double digits in FY24 and FY25.
Image Source: Zacks Investment Research3. Honeywell International (HON – Free Report)Year to Date Performance: -3%Based on its YTD performance, Honeywell International’s stock may be a buy-the-dip candidate as a global leader in diversified technology solutions and manufacturing products.Like GE, Honeywell is famously known for its consumer appliance products and was able to beat Q2 EPS estimates by 3% yesterday with earnings at $2.49 per share. This was an 11% increase from the comparative quarter. That said, Honeywell’s steady top and bottom line growth should keep longer-term investors engaged with HON now trading at a reasonable 19.9X forward earnings multiple which is nicely beneath its decade-long high of 30.5X and a slight discount to the median of 20.1X.
Image Source: Zacks Investment ResearchBottom LineAttributing to their strong buy ratings is that earnings estimate revisions have trended higher for Taiwan Semiconductor, GE Aerospace, and Honeywell International for both FY24 and FY25. This suggests there should be more short-term upside in these highly ranked stocks along with being viable long-term investments as iconic global manufacturers.More By This Author:Bull Of The Day: The Progressive Bear of the Day: KohlsBull Of The Day: Amplify Energy