These stocks loved by analysts will show the biggest earnings growth this year

Published Wed, Jul 14 20213:20 PM EDT

Earnings reporting season is underway and since stock prices typically follow profits, investors may want to look at the following stocks which are expected to post booming results this year. Second-quarter earnings season is off to a good start with every single one of the companies in the S & P 500 that have posted their results exceeding analyst estimates. The average surprise is 21% above EPS expectations. But which companies are expected to be the best of the best according to Wall Street? CNBC PRO screened for companies that are expected to post earnings-per-share growth of more than 20% for the full year of 2021, according to analyst estimates collected by FactSet. These stocks are also loved by analysts, with buy ratings from 75% of those who cover the names. To boot, analysts expect these stocks to jump 10% or more over the next 12 months as they deliver on this profits boom. Much of the list are stocks in cyclical sectors. That is, industries whose prospects closely follow economic expansions and recessions. Nike and General Motors are among the more notable stocks that fall into that category. Nike is particularly well positioned due to increasing global athletic demand, high pricing power and lean wholesale inventor levels, according to a Jefferies note out Wednesday. Jefferies also said it expects Nike's scaling direct-to-consumer strategy to drive margins higher and accelerate cash flows, and that likely strong back-to-school and holiday selling seasons will benefit the athletic apparel brand. "With global demand very strong, Nike gaining share, and the company driving more vertical integration into its business, the probability of continued top-line strength and expanding margins looks high," Jefferies analyst Randal Konik said in the note. "The fact that Nike raised its sales and margin forecasts last quarter (something it didn't have to do) demonstrates the company's visibility into and control of its business." General Motors is the favorite automaker of RBC, which has a price target on it of $77. GM is trading at about $58 Wednesday afternoon. "The company's resilience through three consecutive recessionary events over the past two years" – the United Auto Workers strike, COVID-19 pandemic and chip shortage – "allows investors to have increased confidence in the re-done cost structure, more resilient biz model and management's ability to execute," RBC said in a note Tuesday. "This in turn can allow investors to focus more on the future, i.e. GM's under-appreciated (in our view) auto-tech capabilities." Amazon is also on the list, as e-commerce trends look to be more stable despite a two-month pullback after strong trends in March, according to Wolfe Research. The e-commerce giant also stands to gain from back-to-school shopping trends, analysts believe.

Shoppers wait in line to enter a Nike Inc. store during a summer sale in Beijing, China on Sunday, Sept. 20, 2020.

Yan Cong | Bloomberg | Getty Images

Earnings reporting season is underway and since stock prices typically follow profits, investors may want to look at the following stocks which are expected to post booming results this year.