Corporate profits are looking strong already a week into the earnings season. As we move beyond the lowest points of the pandemic, this growth is unlikely to continue. Investors should consider stock with strong growth potential over the next few years. Sanderson Farms , Inc., Ulta Beauty, Inc., and SBA Communications Corporation are examples of such stocks. As the world economy recovers from the COVID-19 pandemic, growth rates will slow. Although earnings reports for the third quarter are strong, they’re not as strong as those of the previous two. This is due to how the earnings releases for the third quarter of the year are compared with the results of the previous two quarters. It was the height and peak of the pandemic.

You can see why so many companies experienced high growth rates. We can expect this type of growth to stop as stocks recover from the pandemic. The overall growth in earnings should be slower than quarters when companies have bounced back. Some companies will still see high growth over the next few years.

However, it is difficult to find these people. Our POWR Ratings makes it easy. Just run a screen looking for stocks that are Buy-rated with either a Growth Grade A or B and projected earnings rates of more than 50% each year for the next five. Sanderson Farms, Inc., Ulta Beauty, Inc., (ULTA), SBA Communications Corporation, (SBAC) are my three top picks.

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