Back to top

Image: Bigstock

3 Stocks to Buy After Massive Earnings Beats

Read MoreHide Full Article

Progressing through this earnings season, several companies are standing out after widely surpassing earnings expectations.

With representation from a variety of sectors here are three companies to buy stock in after favorable quarterly results last week.

AZZ (AZZ - Free Report)

Sector: Industrial Products

Notably, the Zacks Manufacturing-Electronics Industry is currently in the top 6% of over 250 Zacks industries and AZZ Inc. is benefiting as a provider of metal coating services and welding solutions. To that point, AZZ reported its fiscal third quarter results last Tuesday with Q3 EPS of $1.19 beating expectations of $0.99 a share by 20%.

Third quarter earnings also soared 35% from $0.88 a share in the prior year quarter.  AZZ’s annual earnings are now forecasted to jump 20% this year and rise another 10% in FY25 to $4.60 a share. Furthermore, AZZ's stock has rallied +36% in the last year but still trades at a reasonable 13.8X forward earnings multiple.  

Zacks Investment Research
Image Source: Zacks Investment Research

SMART Global )

Sector: Computer & Technology

SMART Global is an electronics manufacturer that is worthy of investors' consideration after eclipsing its fiscal first quarter earnings expectations by 50% last Tuesday. Despite falling from $0.79 per share a year ago, Q1 earnings came in at $0.24 a share compared to estimates of $0.16 a share.

Furthermore, SMART Global’s extensive reach as a supplier of electronic subsystems to Original Equipment Manufacturers (OEMs) may continue to propel the company following a tougher-to-compete-against-year that saw annual EPS at $2.52 a share in FY23. Fiscal 2024 earnings are expected to drop to $1.26 a share but SMART Global’s stock trades at a reasonable 17X forward earnings multiple.

Plus, FY25 earnings are projected to rebound and soar 68% to $2.12 per share. SMART Global’s stock is up a very respectable +28% over the last year and the company has now surpassed earnings expectations in three of its last four quarterly reports posting an average earnings surprise of 29.86%.

Zacks Investment Research
Image Source: Zacks Investment Research

WD40 (WDFC - Free Report)

Sector: Consumer Staples

Rounding out the list, WD40 is an iconic consumer products company that offers multi-purpose maintenance sprays and liquid form solutions used as degreasers, lubricants, and rust removers. WD40 posted stellar fiscal first quarter earnings of $1.28 per share last Tuesday which beat the Zacks Consensus of $1.00 a share by 28%. First quarter earnings also soared 25% from $1.02 a share in the comparative quarter. 

WD40’s stock has now climbed +58% over the last year as the company’s growth trajectory and profitability continues to accelerate with annual earnings now anticipated to rise 6% this year and expand another 14% in FY25 to $5.86 per share.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Now looks look a good time to buy AZZ, SMART Global, and WD40’s stock after easily surpassing quarterly earnings expectations last week. Their strong price performances over the last year looks likely to continue as these companies are shaping up to be viable investments for 2024 and beyond.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AZZ Inc. (AZZ) - free report >>

WD-40 Company (WDFC) - free report >>

Published in