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3 Stocks to Buy Following Positive Earnings Results

Earnings season continues to roll along, with the period primarily positive so far. We’ve heard from over 400 S&P 500 companies so far, and many more are on the reporting docket in the coming days.

Total earnings for the S&P 500 members that have reported are up +5.0% from the same period last year on +4.2% higher revenues. The earnings growth pace reflects an acceleration relative to other periods, undoubtedly a positive development.

Estimates for the coming 2024 Q2 cycle have been trending higher, reflecting optimism among analysts. Full-year 2024 estimates are trending higher as well, alluding to a 9% rebound after last year’s decline.

So far, several companies, including Apple AAPL, Texas Instruments TXN, and Crocs CROX, have seen post-earnings positivity. Let’s take a closer look at each.

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Apple

Apple’s results brought post-earnings fireworks. Concerning headline figures, the company posted a 1.3% beat relative to the Zacks Consensus EPS estimate and posted sales 1% ahead of expectations.

To the surprise of many, the tech titan announced the biggest buyback in corporate history totaling $110 billion. Reflecting further positivity, Apple also unveiled a 4% boost to its quarterly payout, reflecting the 12th consecutive year of higher payouts.

Earnings expectations have drifted higher following the release, reflecting analysts’ optimistic view.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Texas Instruments

Concerning headline figures, TXN posted a sizable 13% beat relative to the Zacks Consensus EPS estimate and posted sales 1.5% ahead of expectations, reflecting its first double-beat in several periods.

Impressively, the company reported $6.3 billion in cash flow from operations in the trailing twelve-month period. Shares have been range bound for years, now looking to breakout following the favorable set of quarterly results.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Crocs

Crocs continued its earnings positivity, posting a 34% beat relative to the Zacks Consensus EPS estimate and reporting sales 6% ahead of expectations. Impressively, the company has exceeded our consensus EPS estimate by an average of 17% across its last four quarterly releases.

Q1 revenue of $939 million grew 6% year-over-year, also reflecting a quarterly record. The company raised its adjusted EPS guidance following the favorable quarter, further showing positivity. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Bottom Line

Earnings season continues to chug along, with a wide variety of companies reporting over the last week.

And concerning post-earnings fireworks, all three companies above - Apple AAPL, Texas Instruments TXN, and Crocs CROX – enjoyed buying pressure following the release of their quarterly results.

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report

Apple Inc. (AAPL) : Free Stock Analysis Report

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

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Zacks Investment Research