5 Earnings Charts at 52-Week Highs
Earnings season rolls on with many popular large cap stocks expected to report this week including Alphabet, Apple, and Amazon.
But it’s not just about technology this week. Other industries that will see reports include energy, restaurants, retailers and industrials along with a handful of home builders. The home builders have surprised the Street by soaring this year even as earnings estimates are being slashed for 2023 as high mortgage rates put a damper on home buying.
5 Hot Stocks
A lot of the popular growth stocks have seen big rallies to start 2023. These five stocks are just a few of them.
Not only are they trading at, or near, 52-week highs, but they all have excellent earnings surprise track records.
Will they beat again?
5 Earnings Charts at 52-Week Highs
1. Meritage Homes MTH
Meritage Homes is one of the home builder stocks that has rallied big in 2023. Shares are up 12% year-to-date and are up 6% over the last year.
Meritage Homes has a great earnings surprise track record. It has only missed once in the last 5 years and it was in 2018. That’s impressive during the pandemic.
Shares continue to be cheap, with a forward P/E of 8.8 but earnings of Meritage Homes are expected to fall 54% in 2023.
Is Meritage Homes over bought?
2. Ferrari N.V. RACE
Ferrari has beat on earnings 9 quarters in a row. It has only missed 3 times in the last 5 years.
Shares of Ferrari are up 17.3% year-to-date and is in the green over the last year, up 9.2%.
But Ferrari doesn’t come cheap. It trades at a forward P/E of 43.
Is the Street too bullish on Ferrari or is the rally justified?
3. e.l.f. Beauty, Inc. ELF
e.l.f. Beauty has beat on earnings 7 quarters in a row and has only missed one time in the last 5 years and it was in early 2021.
Shares of e.l.f. Beauty have soared in the last year, adding 106%. They have broken out to new 5-year highs. However, this year, shares are up just 3.2%.
e.l.f. Beauty is definitely not a value stock in 2023. It trades with a forward P/E of 50.
Is e.l.f. Beauty too hot to handle?
4. Starbucks SBUX
Starbucks has missed just 2 times in the last 5 years but those misses were last year.
However, even with the rocky track record last year, shares of Starbucks are hitting new 52-week highs heading into this report. It’s up 9.3% year-to-date and has gained 11.9% over the last year, while the S&P 500 was still down 8% during that same time.
Starbucks is no longer a deal on a P/E basis either, as it trades at 32x.
With China, it’s second largest market, re-opening, does Starbucks still have further to run?
5. Deckers Outdoor Corp. DECK
Deckers has an outstanding earnings surprise chart with just one miss in the last 5 years. It was in 2021.
Shares of Deckers have soared over the last year, gaining 40% during that time. Even in 2023, the gains have continued, as the stock added 5.3%.
But Deckers isn’t cheap either. It is trading with a forward P/E of 23.5. However, compared to some of the others in this group of 5 companies, these shares seem pretty affordable.
Is Deckers still a buying opportunity?
[In full disclosure, Tracey owns shares of SBUX in her personal portfolio.]
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
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e.l.f. Beauty (ELF) : Free Stock Analysis Report
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