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Unlike last quarter, this earnings season is proving more treacherous for investors. Slight misses or even a lack of better-than-expected forward guidance is being punished in stocks like Meta Platforms ((META - Free Report) ). Meanwhile, bears pounced on AI juggernaut Super Micro Computer ((SMCI - Free Report) ) for simply not pre-announcing earnings like it did last quarter. Overall, Wall Street is providing clues that a lot of the recent good news has been priced into stocks. Furthermore, even the strongest bull markets experience ebbs and flows and do not trend higher in a straight line. Nonetheless, earnings and underlying fundamentals drive stocks in the long term, and bull markets tend to last much longer than most anticipate.
Below are the three of the strongest earnings reports of this earnings season thus far:
Zacks Rank #2 (Buy) stock Robinhood is one of the most popular brokerages in the United States. Robinhood was the first major broker to “democratize” trading by offering a commission-free investing app. The app rose to prominence during the meme stock craze that was spurred on by retail investing groups on the social media platform Reddit ((RDDT - Free Report) ) and included meteoric moves in stocks like GameStop ((GME - Free Report) ).
Consistent Positive EPS Surprises
Last night, HOOD reported first-quarter earnings that trounced Zacks Consensus Estimates by 260%. Over the past four quarters, positive earnings beats have become the norm, with an average EPS beat of 230%!
Image Source: Zacks Investment Research
Record Net Deposits
Net deposits are one of the most important metrics to monitor for brokers. HOOD net deposits reached a record $11.2 billion in Q1, translating to a 44% annualized growth rate and contributing to a 30% growth rate over the last twelve months.
Image Source: Robinhood
Robinhood Gold is Growing
Robinhood recently announced a new “Gold” credit card. HOOD has already gained a healthy 260,000 new subscribers.
Zacks Rank #2 (Buy) stock ARM Holdings is a dominant player in the semiconductor industry due to the company’s energy-efficient designs, which are critical to the function of smartphones, laptops, and AI servers. Though ARM shares have come down to Earth after an explosive debut, the company’s fundamentals are very much intact.
Strong Revenue Growth Expected
Revenue is expected to remain solid and steady, growing 23.19% in 2025 and expected to grow more than 20% in 2026.
Image Source: Zacks Investment Research
Bullish CEO Comments
One statement from the ARM CEO in the conference call stood out to me: “From cloud to edge, all AI software models, from GPT to Llama, rely and run on the Arm compute platform. As these models become larger and smarter, their requirements for more compute with greater power and efficiency can only be realized through Arm.” My interpretation of this statement is that Arm is one of the best AI “pure plays” on Wall Street.
Coinbase is the leading crypto exchange in the United States. Recently, COIN smashed earnings estimates by reporting EPS of $1.64 billion versus estimates of $1.32 billion. However, what’s most impressive about COIN is that despite volatility in the crypto industry, the company’s cash hoard has grown steadily since going public back in 2021.
Image Source: Zacks Investment Research
Bottom Line
Though earnings reactions were relatively muted this quarter, these three companies are firing on all cylinders.
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EPS Season: 3 Standout Reports
Unlike last quarter, this earnings season is proving more treacherous for investors. Slight misses or even a lack of better-than-expected forward guidance is being punished in stocks like Meta Platforms ((META - Free Report) ). Meanwhile, bears pounced on AI juggernaut Super Micro Computer ((SMCI - Free Report) ) for simply not pre-announcing earnings like it did last quarter. Overall, Wall Street is providing clues that a lot of the recent good news has been priced into stocks. Furthermore, even the strongest bull markets experience ebbs and flows and do not trend higher in a straight line. Nonetheless, earnings and underlying fundamentals drive stocks in the long term, and bull markets tend to last much longer than most anticipate.
Below are the three of the strongest earnings reports of this earnings season thus far:
Robinhood Markets ((HOOD - Free Report) )
Zacks Rank #2 (Buy) stock Robinhood is one of the most popular brokerages in the United States. Robinhood was the first major broker to “democratize” trading by offering a commission-free investing app. The app rose to prominence during the meme stock craze that was spurred on by retail investing groups on the social media platform Reddit ((RDDT - Free Report) ) and included meteoric moves in stocks like GameStop ((GME - Free Report) ).
Consistent Positive EPS Surprises
Last night, HOOD reported first-quarter earnings that trounced Zacks Consensus Estimates by 260%. Over the past four quarters, positive earnings beats have become the norm, with an average EPS beat of 230%!
Image Source: Zacks Investment Research
Record Net Deposits
Net deposits are one of the most important metrics to monitor for brokers. HOOD net deposits reached a record $11.2 billion in Q1, translating to a 44% annualized growth rate and contributing to a 30% growth rate over the last twelve months.
Image Source: Robinhood
Robinhood Gold is Growing
Robinhood recently announced a new “Gold” credit card. HOOD has already gained a healthy 260,000 new subscribers.
Arm Holdings ((ARM - Free Report) )
Zacks Rank #2 (Buy) stock ARM Holdings is a dominant player in the semiconductor industry due to the company’s energy-efficient designs, which are critical to the function of smartphones, laptops, and AI servers. Though ARM shares have come down to Earth after an explosive debut, the company’s fundamentals are very much intact.
Strong Revenue Growth Expected
Revenue is expected to remain solid and steady, growing 23.19% in 2025 and expected to grow more than 20% in 2026.
Image Source: Zacks Investment Research
Bullish CEO Comments
One statement from the ARM CEO in the conference call stood out to me: “From cloud to edge, all AI software models, from GPT to Llama, rely and run on the Arm compute platform. As these models become larger and smarter, their requirements for more compute with greater power and efficiency can only be realized through Arm.” My interpretation of this statement is that Arm is one of the best AI “pure plays” on Wall Street.
Coinbase Global ((COIN - Free Report) )
Coinbase is the leading crypto exchange in the United States. Recently, COIN smashed earnings estimates by reporting EPS of $1.64 billion versus estimates of $1.32 billion. However, what’s most impressive about COIN is that despite volatility in the crypto industry, the company’s cash hoard has grown steadily since going public back in 2021.
Image Source: Zacks Investment Research
Bottom Line
Though earnings reactions were relatively muted this quarter, these three companies are firing on all cylinders.