Advertisement
U.S. markets open in 6 hours 53 minutes
  • S&P Futures

    5,092.25
    -9.25 (-0.18%)
     
  • Dow Futures

    39,151.00
    -38.00 (-0.10%)
     
  • Nasdaq Futures

    17,938.00
    -53.00 (-0.29%)
     
  • Russell 2000 Futures

    2,016.30
    -4.20 (-0.21%)
     
  • Crude Oil

    76.28
    -0.21 (-0.27%)
     
  • Gold

    2,044.40
    -5.00 (-0.24%)
     
  • Silver

    22.85
    -0.13 (-0.55%)
     
  • EUR/USD

    1.0838
    +0.0015 (+0.14%)
     
  • 10-Yr Bond

    4.2600
    0.0000 (0.00%)
     
  • Vix

    13.75
    -0.79 (-5.43%)
     
  • GBP/USD

    1.2677
    +0.0004 (+0.04%)
     
  • USD/JPY

    150.3950
    -0.0450 (-0.03%)
     
  • Bitcoin USD

    51,408.80
    -307.01 (-0.59%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,706.28
    +21.79 (+0.28%)
     
  • Nikkei 225

    39,233.71
    +135.01 (+0.35%)
     

2 Top-Ranked Stocks to Buy After Earnings

Last week’s earnings lineup featured several highly ranked Zacks stocks that were able to beat expectations.

Here is a look at two top-rated stocks that investors may want to consider buying as they continue to stand out following their strong fourth-quarter reports.

Crocs (CROX)

Sporting a Zacks Ranks #2 (Buy) footwear and apparel company Crocs beat Q4 top and bottom line expectations last Thursday. 

Crocs impressively beat bottom-line expectations by 21% with EPS at $2.65, up 23% from $2.15 per share a year ago. On the top line, Crocs topped estimates by roughly 1% with sales at $945.16 million, up an outstanding 61% YoY.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

More impressive, Crocs has now beaten top and bottom line expectations for 11 consecutive quarters dating back to July 2020. The leading footwear brand continues to be a leader in the Textile - Apparel Industry which is currently in the top 35% of over 250 Zacks Industries.

Crocs looks poised to benefit from its wide range of footwear products which includes sandals, wedges, flips, and slides that cater to people of all ages. The company also attributed its stellar growth over the last year to the acquisition of Italian footwear brand HEYDUDE which it acquired last February.

While Wall Street first questioned the $2.5 billion acquisition, the HEYDUDE brand has become very popular with younger generations and this is expected to add continued growth to Crocs’ top and bottom lines.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

To that note, Crocs earnings estimate revisions for fiscal 2023 and fiscal 2024 have started to trend higher again as shown in the above chart and this could continue following the company’s impressive fourth-quarter report.

Fiscal 2023 earnings are expected to decline –2% to $10.70 per share after a very exceptional 2022 that saw EPS increase 31%. However, FY24 earnings are expected to jump 13% to $12.14 per share. Even better, fiscal 2024 would be a mind-blowing 654% increase from pre-pandemic levels with 2019 EPS at $1.61.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

On the top line, sales are expected to jump 11% in FY23 to $3.94 billion after what was already a record annual year for revenue in 2022. Fiscal 2024 sales are projected to rise another 10%. Furthermore, with 2019 sales at $1.23 billion, FY24 sales projections of $4.34 billion would represent 253% growth from pre-pandemic levels.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Crocs currently sports an “A” Style Scores grade for Growth along with an overall “A” VGM grade for the combination of Value, Growth, and Momentum. While many companies have struggled with higher inflation and experienced a slowdown during the pandemic, Crocs has continued growing with CROX stock up +233% over the last three years to easily top the S&P 500’s +26% and the Textile-Apparel Manufacturing Markets -7%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Vontier Corporation (VNT)

Also sporting a Zacks Rank #2 (Buy) Vontier Corporation continues to stand out following its strong Q4 results last Thursday. The transportation and mobility solutions company reached its bottom-line expectations with Q4 EPS of $0.81, despite this being down -2% YoY.

Fourth quarter sales beat expectations by 9% at $871.90 million, up 10% YoY. As an expert in mobility technologies, retail and commercial fueling, fleet management, telematics, and vehicle diagnostics among other services, Vontier also highlighted that its Q4 orders were up 10% from the prior-year quarter.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

In correlation, earnings estimate revisions have trended higher for both fiscal 2023 and fiscal 2024 over the last week with Vontier’s Technology Services Industry currently in the top 41% of all Zacks Industries.  

According to Zacks estimates, Vontier’s fiscal 2023 earnings are projected to decline -10% at $2.76 per share following an impressive 2022. With that being said, earnings estimates have gone up 1% in the last week since its Q4 report and FY24 earnings are expected to rebound and jump 9% to $3.03 per share.

Sales are forecasted to dip -7% in FY23 but stabilize and rise 1% in FY24 to $3.03 billion. Plus, fiscal 2023 sales would still represent 8% growth from pre-pandemic levels with 2019 sales at $2.77 billion.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

Vontier stock is now down -7% since its spinoff from Fortive Corporation (FTV) in October 2020 to underperform the benchmark’s +16% but top the Technology Services Markets -67% during this period. Notably, shares of VNT have rallied +31% year to date to also top its Zacks Subindustry’s +15% and the benchmark.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Bottom Line

Crocs (CROX) and Vontier Corporation (VNT) are stocks that investors will want to keep an eye on as we progress through 2023. Both companies look poised to have strong performances this year and this could very well continue into 2024 as earnings estimate revisions are trending higher following their strong fourth-quarter reports.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Crocs, Inc. (CROX) : Free Stock Analysis Report

Vontier Corporation (VNT) : Free Stock Analysis Report

Fortive Corporation (FTV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement