Top Stocks to Buy After Earnings in a Week Highlighted by Tech
Investors are certainly sifting through winners in this week’s busy earnings lineup which featured results from tech giants Alphabet GOOGL and Microsoft MSFT on Tuesday with Apple (AAPL), Amazon AMZN, and Meta Platforms META set to report after the bell today.
With that being said, several tech stocks are standing out after strong quarterly results outside of these Magnificent Seven players and here are a few to consider.
Celestica CLS
Celestica is one of the largest electronics manufacturing services companies in the world and its fourth quarter results on Monday did not disappoint. Fourth quarter earnings of $0.76 a share came in 12% better than expected and climbed 35% from EPS of $0.56 in Q4 2022. On the top line, Q4 sales of $2.14 billion beat estimates by 3% and rose 5% year over year.
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More importantly, Celestica finished fiscal 2023 with total sales up 10% to $7.96 billion and posted record annual earnings of $2.43 per share which was a 28% increase. Celestica’s full-year operating margin of 5.6% was also a company record and CEO Rob Mionis stated the strong momentum is continuing into 2024. It's noteworthy that CLS shares have now rallied an astonishing +165% over the last year but still trade at a very reasonable 11.8X forward earnings multiple.
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Super Micro Computer SMCI
As a Total IT Solution provider for AI, Cloud, Storage, and 5G, Super Micro Computer’s robust growth continues to stand out after its fiscal second quarter results on Monday. Super Micro posted Q2 earnings of $5.59 per share which topped the Zacks Consensus by 2% and soared 71% from $3.26 a share in the prior-year quarter.
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More impressive, Q2 sales of $3.66 billion easily surpassed estimates of $3.21 billion by 14% and skyrocketed 103% from $1.8 billion a year ago. Super Micro attributed the very stellar results to its optimized AI computer platforms along with its Total IT solutions which continue to help the company take market share. To that point, Super Micro’s stock has been one the best performers over the last year with shares catapulting a remarkable +620% to even top Nvidia’s NVDA +198%.
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Woodward WWD
Reporting its fiscal first quarter results on Monday, energy control and optimization solutions provider Woodward is intriguing as well. Providing its service solutions to the aerospace and industrial markets, Woodward’s Q1 EPS of $1.45 crushed the Zacks Consensus of $1.10 a share by 32% and climbed 124% from $0.49 a share in the comparative quarter.
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Woodward beat top line estimates by 6% with quarterly sales at $786.73 million which was up 27% YoY. The significant sales growth and margin expansion were driven by robust end-market demand in both its Aerospace and Industrial segments and improved operational performance. Woodward’s stock has risen a respectable +32% over the last year and there could be more upside as the company raised most of its key financial guidance for fiscal 2024 based on strengthening business operations in China.
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Bottom Line
At the moment, Celestica, Super Micro Computer, and Woodward’s stock all covet a Zacks Rank #1 (Strong Buy) and are benefiting from strong business industries that are in the top 25% of over 250 Zacks industries. Now looks like a good time to buy these stocks as their strong price performances may continue after such impressive quarterly results.
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Celestica, Inc. (CLS) : Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
