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With the first quarter in the books, one thing is sure – the market started 2023 off much better than last year’s comparable period.
Several stories gripped the market throughout the quarter, namely banking concerns and questions surrounding the Federal Reserve’s future path of rate hikes. In addition, Q4 2022 earnings season turned out to be better than feared, further lifting sentiment throughout the initial months of 2023.
As we’re all aware, the tech-heavy Nasdaq had a monster quarter, penciling in a +15% gain and delivering its best performance since 2020.
But what individual stocks stole the show in Q1?
Three well-known companies – NVIDIA (NVDA - Free Report) , Salesforce (CRM - Free Report) , and Airbnb (ABNB - Free Report) – have all delivered outsized gains so far year-to-date, as we can see in the chart below.
Image Source: Zacks Investment Research
Can their outperformance continue? Let’s take a closer look and see how each presently stacks up.
Airbnb
Airbnb’s leading platform provides a marketplace for connecting hosts and guests online or through mobile devices to book spaces and experiences. ABNB has seen positive earnings estimate revisions across nearly all timeframes over the last 60 days.
Image Source: Zacks Investment Research
Airbnb posted strong quarterly results in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 80% and reporting revenue 2% ahead of expectations.
The market took the better-than-expected results in stride, with ABNB shares gaining more than 13% in the following trading session.
Image Source: Zacks Investment Research
And to top it off, Airbnb boasts a solid growth profile, with earnings forecasted to climb 21% in its current fiscal year (FY23) and a further 20% in FY24. Consumers continue to find Airbnb’s unique platform attractive, helping to deliver a positive outlook for its top and bottom line.
Image Source: Zacks Investment Research
NVIDIA
NVDA shares have delivered a remarkable performance since their 2022 October lows, up more than 100%. The company’s Artificial Intelligence (AI) operations have become a big focus among investors, with buyers consistently stepping up to get exposure to Wall Street’s shiny new toy.
Analysts have taken a bullish stance on the company’s outlook, pushing NVDA into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
It’s no secret that NVDA shares are expensive, with the current 61.9X forward earnings multiple sitting well above the already steep 51.7X five-year median. Of course, technology stocks commonly trade at a premium relative to the general market, as that’s the price investors pay for growth.
Image Source: Zacks Investment Research
Salesforce
Salesforce is the leading provider of on-demand Customer Relationship Management (CRM - Free Report) software, enabling organizations to better manage critical operations. Like the stocks above, CRM’s earnings outlook has moved notably higher.
Image Source: Zacks Investment Research
Like ABNB, the market was impressed with CRM’s latest quarterly results, with the company delivering a sizable 25% bottom line beat and reporting sales 5% above expectations. As we can see in the chart below, CRM’s top line growth has been solid.
Image Source: Zacks Investment Research
Bottom Line
Several stocks delivered outsized gains in Q1, with buyers stepping up consistently throughout the period.
Sentiment has been much more positive in 2023 so far, undoubtedly a welcomed development following a forgettable 2022.
And all three stocks above – NVIDIA (NVDA - Free Report) , Salesforce (CRM - Free Report) , and Airbnb (ABNB - Free Report) – stole the show, providing serious gains. In addition, all three sport a favorable Zacks Rank, indicating optimistic near-term outlooks.
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These 3 Top-Ranked Stocks Roared in Q1
With the first quarter in the books, one thing is sure – the market started 2023 off much better than last year’s comparable period.
Several stories gripped the market throughout the quarter, namely banking concerns and questions surrounding the Federal Reserve’s future path of rate hikes. In addition, Q4 2022 earnings season turned out to be better than feared, further lifting sentiment throughout the initial months of 2023.
As we’re all aware, the tech-heavy Nasdaq had a monster quarter, penciling in a +15% gain and delivering its best performance since 2020.
But what individual stocks stole the show in Q1?
Three well-known companies – NVIDIA (NVDA - Free Report) , Salesforce (CRM - Free Report) , and Airbnb (ABNB - Free Report) – have all delivered outsized gains so far year-to-date, as we can see in the chart below.
Image Source: Zacks Investment Research
Can their outperformance continue? Let’s take a closer look and see how each presently stacks up.
Airbnb
Airbnb’s leading platform provides a marketplace for connecting hosts and guests online or through mobile devices to book spaces and experiences. ABNB has seen positive earnings estimate revisions across nearly all timeframes over the last 60 days.
Image Source: Zacks Investment Research
Airbnb posted strong quarterly results in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 80% and reporting revenue 2% ahead of expectations.
The market took the better-than-expected results in stride, with ABNB shares gaining more than 13% in the following trading session.
Image Source: Zacks Investment Research
And to top it off, Airbnb boasts a solid growth profile, with earnings forecasted to climb 21% in its current fiscal year (FY23) and a further 20% in FY24. Consumers continue to find Airbnb’s unique platform attractive, helping to deliver a positive outlook for its top and bottom line.
Image Source: Zacks Investment Research
NVIDIA
NVDA shares have delivered a remarkable performance since their 2022 October lows, up more than 100%. The company’s Artificial Intelligence (AI) operations have become a big focus among investors, with buyers consistently stepping up to get exposure to Wall Street’s shiny new toy.
Analysts have taken a bullish stance on the company’s outlook, pushing NVDA into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
It’s no secret that NVDA shares are expensive, with the current 61.9X forward earnings multiple sitting well above the already steep 51.7X five-year median. Of course, technology stocks commonly trade at a premium relative to the general market, as that’s the price investors pay for growth.
Image Source: Zacks Investment Research
Salesforce
Salesforce is the leading provider of on-demand Customer Relationship Management (CRM - Free Report) software, enabling organizations to better manage critical operations. Like the stocks above, CRM’s earnings outlook has moved notably higher.
Image Source: Zacks Investment Research
Like ABNB, the market was impressed with CRM’s latest quarterly results, with the company delivering a sizable 25% bottom line beat and reporting sales 5% above expectations. As we can see in the chart below, CRM’s top line growth has been solid.
Image Source: Zacks Investment Research
Bottom Line
Several stocks delivered outsized gains in Q1, with buyers stepping up consistently throughout the period.
Sentiment has been much more positive in 2023 so far, undoubtedly a welcomed development following a forgettable 2022.
And all three stocks above – NVIDIA (NVDA - Free Report) , Salesforce (CRM - Free Report) , and Airbnb (ABNB - Free Report) – stole the show, providing serious gains. In addition, all three sport a favorable Zacks Rank, indicating optimistic near-term outlooks.