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Stocks have had a hot June, with the S&P 500 sitting well in the green. Needless to say, it’s been a welcomed development among investors, with sentiment riding high following a lackluster 2022.
Three stocks in particular – Adobe (ADBE - Free Report) , Carnival (CCL - Free Report) , and Pure Storage (PSTG - Free Report) – have displayed notable relative strength throughout June so far, as we can see illustrated in the chart below.
Image Source: Zacks Investment Research
With all three seeing buyers stepping up heavily, it raises a valid question: how do they stack up? Let’s take a closer look at each.
Adobe
Adobe is one of the biggest software companies in the world, generating the bulk of its revenue via licensing fees from its customers. The company has enjoyed positive earnings estimate revisions across all timeframes, indicating optimism among analysts.
Image Source: Zacks Investment Research
The company’s growth profile is undoubtedly worth highlighting, with earnings forecasted to grow 14% in its current fiscal year on 10% higher revenues. And in FY24, estimates call for a further 12% earnings growth and an 11% year-over-year climb in revenue.
Image Source: Zacks Investment Research
Carnival
Carnival, a cruise and vacation company, is the world's leading leisure travel firm, carrying nearly half of global cruise guests. The company posted strong quarterly results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 11% and delivering a 2% sales beat.
As shown below, the company’s revenue has recovered nicely from pandemic lows.
Image Source: Zacks Investment Research
The company continues to recover from the pandemic shake-up; estimates call for a sizable 93% recovery in earnings for its current fiscal year and an additional 360% in FY24. Regarding the top line, expectations reflect 72% and 10% year-over-year climbs in revenue for FY23 and FY24, respectively.
Image Source: Zacks Investment Research
Pure Storage
Pure Storage provides software-defined all-flash solutions that are uniquely fast and cloud-capable for customers. The company has seen increasing earnings estimate revisions, with the trend particularly noteworthy for its upcoming quarter.
Image Source: Zacks Investment Research
Like CCL, Pure Storage posted results well above expectations in its latest release; PSTG exceeded the Zacks Consensus EPS Estimate by 100% and delivered a 5% revenue surprise. Impressively, the company has exceeded earnings expectations by an average of more than 50% across its last four quarters.
Image Source: Zacks Investment Research
Bottom Line
While the market has performed well in June so far, all three stocks above – Adobe (ADBE - Free Report) , Carnival (CCL - Free Report) , and Pure Storage (PSTG - Free Report) – have widely outperformed, delivering outsized gains to investors.
For those interested in momentum-styled investing, all three deserve consideration.
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Image: Bigstock
These 3 Stocks Have Been Red-Hot in June
Stocks have had a hot June, with the S&P 500 sitting well in the green. Needless to say, it’s been a welcomed development among investors, with sentiment riding high following a lackluster 2022.
Three stocks in particular – Adobe (ADBE - Free Report) , Carnival (CCL - Free Report) , and Pure Storage (PSTG - Free Report) – have displayed notable relative strength throughout June so far, as we can see illustrated in the chart below.
Image Source: Zacks Investment Research
With all three seeing buyers stepping up heavily, it raises a valid question: how do they stack up? Let’s take a closer look at each.
Adobe
Adobe is one of the biggest software companies in the world, generating the bulk of its revenue via licensing fees from its customers. The company has enjoyed positive earnings estimate revisions across all timeframes, indicating optimism among analysts.
Image Source: Zacks Investment Research
The company’s growth profile is undoubtedly worth highlighting, with earnings forecasted to grow 14% in its current fiscal year on 10% higher revenues. And in FY24, estimates call for a further 12% earnings growth and an 11% year-over-year climb in revenue.
Image Source: Zacks Investment Research
Carnival
Carnival, a cruise and vacation company, is the world's leading leisure travel firm, carrying nearly half of global cruise guests. The company posted strong quarterly results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 11% and delivering a 2% sales beat.
As shown below, the company’s revenue has recovered nicely from pandemic lows.
Image Source: Zacks Investment Research
The company continues to recover from the pandemic shake-up; estimates call for a sizable 93% recovery in earnings for its current fiscal year and an additional 360% in FY24. Regarding the top line, expectations reflect 72% and 10% year-over-year climbs in revenue for FY23 and FY24, respectively.
Image Source: Zacks Investment Research
Pure Storage
Pure Storage provides software-defined all-flash solutions that are uniquely fast and cloud-capable for customers. The company has seen increasing earnings estimate revisions, with the trend particularly noteworthy for its upcoming quarter.
Image Source: Zacks Investment Research
Like CCL, Pure Storage posted results well above expectations in its latest release; PSTG exceeded the Zacks Consensus EPS Estimate by 100% and delivered a 5% revenue surprise. Impressively, the company has exceeded earnings expectations by an average of more than 50% across its last four quarters.
Image Source: Zacks Investment Research
Bottom Line
While the market has performed well in June so far, all three stocks above – Adobe (ADBE - Free Report) , Carnival (CCL - Free Report) , and Pure Storage (PSTG - Free Report) – have widely outperformed, delivering outsized gains to investors.
For those interested in momentum-styled investing, all three deserve consideration.