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2 Highly-Ranked Stocks to Buy After Earnings

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Among the Zacks Rank #1 (Strong Buy) list several stocks are standing out after surpassing quarterly earnings expectations.

Here are two of these highly-ranked stocks that investors should consider buying right now.

Alpha Metallurgical Resources (AMR - Free Report) )

Starting out, mining company Alpha Metallurgical Resources impressively topped its first-quarter top and bottom line expectations on Monday.

Notably, Alpha’s Mining-Miscellaneous Industry is currently in the top 47% of over 250 Zacks industries. With mining operations in Virginia and West Virginia, Alpha is benefiting as a provider of metallurgical products to the steel industry.

Q1 Review: Alpha topped Q1 EPS expectations by 19% with earnings at $17.01 per share compared to estimates of $14.22 a share. The bottom-line results were very impressive following a tough-to-compete against prior-year quarter that saw EPS at $20.52 in Q1 2022.

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Plus, Alpha topped Q1 sales estimates by 6%. More intriguing, Alpha’s bottom-line remains robust although a natural decline is expected as higher commodity prices begin to ease along with inflation. Annual earnings are expected to drop -38% this year at $48.96 per share from an extremely outstanding 2022 that saw EPS at $79.49.

With that being said, earnings estimate revisions have climbed in the last week and Alpha stock trades at $157 and just 3.3X forward earnings. Despite the immense profits, Alpha still trades at a very attractive discount to the industry average of 9.6X and the S&P 500’s 19X.

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Inter Parfums (IPAR - Free Report) )

Another stock among the Zacks Rank #1 (Strong Buy) list that is standing out after topping its first-quarter earnings expectations on Monday is Inter Parfums.

Inter Parfums Cosmetics Industry is in the top 24% of all Zacks industries and the company is positioned well as an international distributor of a wide range of fragrances and related products.

Q1 Review: Inter Parfums blasted its Q1 earnings expectations by 21% with EPS at $1.68 compared to estimates of $1.39 per share. First-quarter earnings also climbed 53% YoY with Q1 2022 EPS at $1.10.

This was despite a very slight miss on the top line. Still, earnings estimate revisions have remained higher and the stellar bottom-line results continued to confirm Inter Parfums’ steady and expansive EPS growth.

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With Inter Parfums stock trading at $135, annual earnings are expected to rise 7% this year and jump another 13% in FY24 at $4.82 per share. More impressive, fiscal 2024 would represent a very stellar 298% EPS growth rate over the last five years with 2020 earnings at $1.21 per share.

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Bottom Line

Alpha Metallurgical Resources and Inter Parfums’ earnings potential was on full display during their first-quarter reports. As we progress through 2023 there could be a nice amount of upside in both stocks and now appears to be an ideal time to buy.  


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Alpha Metallurgical Resources, Inc. (AMR) - free report >>

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