S&P/ASX 200 Index (ASX: XJO) stocks are flying on Friday, up 1.31% to 7,782.6 points following a positive session on Wall Street.
With earnings season underway, investors are finding out how ASX 200 companies did over FY24.
In this article, we're looking ahead and profiling four ASX 200 stocks that top broker Macquarie thinks will continue to deliver growth in earnings per share (EPS) despite a challenging economy in FY25.
All four of these ASX 200 shares are featured in Macquarie's model growth portfolio.
There are 17 ASX shares in the portfolio altogether. These four are expected to deliver the highest EPS growth of the group in FY25.
The broker has given all four of these ASX 200 growth stocks an outperform rating. It also expects significant share price growth for each one over the next 12 months.
Let's check them out.
Top broker backs 4 ASX 200 stocks for major EPS growth
PEXA Group Ltd (ASX: PXA)
The PEXA share price is up 1.43% to $13.45 at the time of writing on Friday. The ASX 200 property stock has lifted 21.94% in the year to date.
Macquarie is expecting a massive step change in EPS growth to 158.7% in FY25, up from an anticipated 9.9% EPS growth in FY24.
Macquarie has a 12-month share price target of $16.80 on PEXA shares. If the broker is right, that will mean an uplift of 25% for investors who buy the ASX 200 property stock today.
Flight Centre Travel Group Ltd (ASX: FLT)
The Flight Centre share price is down 0.61% to $20.23 on Friday. The ASX 200 travel stock is down 1.1% in the year to date.
Macquarie is tipping 38.2% EPS growth in FY25. While this is healthy growth, it will be well down on FY24.
The broker anticipates EPS growth of 181.5% for Flight Centre shares in FY24.
The broker has a 12-month share price target of $25.26 on the ASX 200 stock. This implies a potential upside of 25% over the next year.
Northern Star Resources Ltd (ASX: NST)
The Northern Star share price is up 1.81% to $14.05 on Friday. The ASX 200 mining stock is up 2.41% in the year to date.
Macquarie anticipates EPS growth of 54.9% for Northern Star in FY25.
The broker expects EPS growth for FY24 to come in much higher at 411.6%. This is likely to be at least partly reflective of the gold price flying to new all-time highs during the year.
The broker likes the look of this gold mining stock and has a share price target of $17. This implies a potential 21% increase for investors who buy the ASX 200 gold stock today.
Xero Ltd (ASX: XRO)
The Xero share price is up 3.3% to $132.70 on Friday. The ASX 200 tech stock is up 17.28% year-to-date.
Macquarie is tipping an unbelievable level of EPS growth for Xero shares in FY24 at 5,160.1%.
Despite that crazy-good level of EPS growth, the broker is expecting Xero to back it up in FY25, but at a lower level.
The broker expects EPS growth of 43.9% for Xero shares in FY25.
Macquarie thinks the Xero share price can rise to $184.40 by this time next year. That would deliver a 39% uplift for investors who buy the technology stock today.
