Corporate earnings are probably the most keenly watched events by investors. Earnings theoretically determine the growth or contraction of companies as well as their stocks. Whether earnings numbers really drive share prices probably constitutes the bulk of the research on Wall Street. While companies may try every trick in the book to impress its investors, what ultimately catches their eye is the earnings performance compared to market expectations.

Needless to say, the health of the overall economy has an impact on the performance of companies. The U.S. economy started to turn around toward the end of 2014. This current year also began on a positive note owing to stepped-up economic activities, rising business and consumer confidence, an improving job market, recovering housing fundamentals and an accommodative monetary policy.

However, a combination of factors such as a weakness in the energy sector, a strong U.S. dollar and anemic global growth – particularly in China and other emerging markets – stalled the growth momentum.

A Bumpy Road to Recovery

A stronger U.S. dollar has been pulling down profits and making it tough for the majority of American multinationals to top revenue expectations since the fourth quarter of 2014. It continues to hurt earnings on a year-over-year basis.

Moreover, it is worth noting in this regard that some of the biggest economies of the world like China, the Eurozone, Japan and Russia are in big trouble. As Wall Street was busy guessing the timing of the first rate hike by the Federal Reserve in nine years, the Chinese market equity bubble burst and the Greeks defaulted on their IMF loan.

The Year So Far

Owing to the sluggish economic scenario, the first half of the year has been quite weak. As of Sep 10, earnings and revenues of companies in the S&P 500 index declined 2.1% and 3.4%, respectively, for the second quarter. While in the first quarter, as of May 29, 2015, total earnings of 492 S&P 500 companies were up 3.2%, revenues were down 3.4%.

We expect the ongoing headwinds to impact third quarter results as well. Estimates for third quarter are also following the all-too-familiar trend of descend. Total earnings for the S&P 500 index are expected to be down 5.5% in the third quarter while revenues are likely to decline 4.4%. The energy sector remains the biggest drag in the third quarter, as has been the trend in recent quarters. (Read more: What to Expect from the Q3 Earnings Season?)

The Investing Way

Amid these ups and downs, investors need to hunt for stocks that will hold steady when the broad market is volatile. We have identified four stocks that have convincingly beaten earnings estimates in the past four quarters, hold excellent prospects and are therefore well-positioned for future earnings growth.

With the help of our new style score system, we short-listed stocks that hold immense growth potential. Our Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Our research shows that stocks with Growth Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer the best investment opportunities in the growth investing space.

All the stocks selected herein flaunt a Zacks Rank of #1 or 2, have a Growth Style Score of ‘A’ or ‘B,’ a year-to-date return of more than 20% and an average earnings surprise of more than 25% over the trailing four quarters.

4 Stocks with Solid Growth Potential

Based in North Carolina, LendingTree, Inc. (TREE - Snapshot Report) operates an online loan marketplace for consumers that are looking for different types of loans and other credit-based offerings in the U.S.

LendingTree with a growth score of ‘B’ has been performing well driven by solid revenue growth from its mortgage as well as non-mortgage products. In fact, driven by its encouraging performance, the company has increased its revenue guidance for 2015 for three consecutive quarters in a row.

This Zacks Rank #1 company’s earnings have beaten the Zacks Consensus Estimate in all the trailing four quarters. It has a positive average earnings surprise of 59.03%. Share price of this company has soared 122% year-to-date. The stock has also witnessed a 31% increase in earnings estimates to $1.85 per share for the current year over the last 60 days.

Based in Florida, Dycom Industries Inc. (DY - Analyst Report) is a specialty contracting firm operating in the telecom industry. The company provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies.

Dycom Industries has a growth score of ‘B’ and has been faring well driven by the increased demand for network bandwidth and mobile broadband, given the proliferation of smartphones. The company continues to win lucrative contracts as well as renew existing ones, with solid backlog levels that promise high growth.

This Zacks Rank #1 company’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters. It currently has a positive average earnings surprise of 66.01%. Share price of this company has soared 112% year-to-date. The stock has also witnessed an upward revision of 25% in earnings estimates to $3.25 per share for the current year over the last 60 days.

Based in California, Ellie Mae, Inc. (ELLI - Snapshot Report) that provides on-demand software solutions and services for the residential mortgage industry in the United States currently has a Zacks Rank #1. The company provides Encompass, a proprietary software solution that combines loan origination and enterprise management software for mortgage originators into a system, as well as access to investors, lenders, and service providers on the Ellie Mae Network. Driven by strong performance, the company has increased its revenue guidance for 2015 for two consecutive quarters in a row.

Earnings of this company with a growth score ‘A’ have come ahead of the Zacks Consensus Estimate in all the trailing four quarters. It currently has a positive average earnings surprise of 203.29%. The strong performance reflects its strong customer base that has outpaced the mortgage industry as a whole. This is largely backed by Encompass, which helps it to service demand better than many of its industry peers. Share price of this company has soared 83% year-to-date. Earnings estimates have gone up 69.6% to 56 cents per share for the current year over the last 60 days.

Based in Massachusetts, LeMaitre Vascular, Inc. (LMAT - Snapshot Report) develops, manufactures, and markets medical devices and implants for the treatment of peripheral vascular disease worldwide. The HYDRO LeMaitre Valvulotome that was launched last year has been chief growth driver in the recent quarters for this Zacks Rank #2 company.

This company with a growth score of ‘A’ has beaten earnings in three of the trailing four quarters. It currently has a positive average earnings surprise of 35.83%. Share price of this company has soared 69% year-to-date. The stock has witnessed an upward revision of 17.9% in earnings estimates to 33 cents per share for the current year over the last 60 days.

Moving Ahead

Keeping in mind the current economic fundamentals, it might not be a bad idea for investors to play safe at the moment and invest in stocks that have a consistent track record of beating estimates. Their stellar results, strong fundamentals and solid earnings estimate revisions should ultimately lead to price appreciation.