3 Stocks to Buy For Post-Earnings Momentum
The Q4 earnings cycle has primarily finished, with most S&P 500 companies already reporting. It’s been a positive period, underpinned by the Technology sector’s strong performance. On the other hand, the Energy sector has been weighing negatively on the earnings picture.
Several companies stole the spotlight throughout the period – Meta Platforms META, NVIDIA NVDA, and Deckers Outdoor DECK – posting robust quarterly results. Shares jumped following the release of each, reflecting investors’ bullish reactions.
In addition to solid quarterly results, all three sport a favorable Zacks Rank, reflecting upward trending earnings estimate revisions among analysts. Let’s take a closer look at each.
Deckers Outdoor
Deckers Outdoor, a current Zacks Rank #1 (Buy), is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities.
The revisions trend has been notably bullish for its current fiscal year, with the $26.85 Zacks Consensus EPS estimate 24% higher over the last year and suggesting 38% year-over-year growth.
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Concerning headline figures, DECK posted a 32% beat relative to the Zacks Consensus EPS estimate and reported sales 8.5% ahead of expectations, reflecting growth rates of 44% and 16%, respectively. Impressively, EPS of $15.11 and revenue of $1.6 million reflected quarterly records, driven by strength across its UGG and HOKA brands.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Deckers provided bright guidance following the release, now expecting current-year net sales of $4.15 billion and a gross margin of 54.5%.
Meta Platforms
Regarding the report in focus, Meta Platforms generated $40.1 billion in sales, improving by a sizable 25% from the year-ago period. Top-line results reflect a considerable acceleration, with the 25% jump penciling in the highest year-over-year growth rate in eight quarters.
The stock sports a Zacks Rank #1 (Strong Buy), and earnings expectations are rising across all timeframes.
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The company’s platform also continues to expand, with Facebook daily and monthly active users growing by 6% and 3%, respectively. And its advertising business remains sound, with ad impressions delivered across its family of apps improving 21% year-over-year.
META has consistently posted better-than-expected advertising revenue, exceeding our consensus expectations in six consecutive releases.
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NVIDIA
Of course, Data Center was the real highlight of NVIDIA’s quarterly release, which included sales of its AI chips. NVIDIA’s Data Center raked in $18.4 billion (another quarterly record) throughout the period, up an astonishing 410% on a year-over-year stack.
Robust quarterly results have led analysts to rapidly revise their earnings expectations higher over the last year, landing the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The company’s growth profile is remarkably bright, with consensus expectations for its current fiscal year suggesting 80% earnings growth on 70% higher sales. And the growth doesn’t stop, with FY26 expectations alluding to an additional 11% bump in earnings on 15% higher revenues.
Bottom Line
The 2023 Q4 earnings cycle is essentially over, with the vast majority of notable companies already delivering quarterly results. The Technology sector has been a significant contributor, helping brighten the overall market landscape.
And for those seeking post-earnings positivity, all three companies above – Meta Platforms META, NVIDIA NVDA, and Deckers Outdoor DECK – posted results that had investors impressed.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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Meta Platforms, Inc. (META) : Free Stock Analysis Report
