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3 Stocks to Buy Following Earnings Positivity

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The Q1 cycle has slowed down considerably, with the bulk of S&P 500 companies already revealing quarterly results. The period was overall positive, underpinned by a notably strong performance from the tech sector.

And concerning the positivity, several companies in particular, including Crocs (CROX - Free Report) , e.l.f. Beauty (ELF - Free Report) , and Walmart (WMT - Free Report) , all saw shares move higher post-earnings. But what was there to like in each respective release? Let’s take a closer look.

Crocs

Crocs has jumped back into style recently, as fully reflected by its latest quarterly results. The company’s Crocs brand posted $732 million in quarterly revenue, climbing 10% from the same period last year. HEYDUDE hasn’t fared as well, with quarterly sales down 18%.

Concerning headline figures, the company crushed the Zacks Consensus EPS estimate by 34%. Recent margin expansion has aided the company’s profitability, with a 55.3% gross margin in Q4 up from 52.5% in the same period last year.

Please note that the chart below is on a trailing twelve-month basis.

Zacks Investment Research
Image Source: Zacks Investment Research

The results caused shares to melt higher post-earnings, up 67% overall in 2024 compared to the S&P 500’s 11.6% gain. CROX shares have been notably strong over the last five years, delivering a remarkable 46% annualized return over the period. The stock is a Zacks Rank #2 (Buy).

Walmart

Concerning headline figures in its latest print, the retail titan posted a 15% beat relative to the Zacks Consensus EPS estimate and reported sales 1.3% ahead of expectations. Earnings saw year-over-year growth of 22%, whereas sales climbed 6% from the same period last year.

The earnings estimate revisions trend has been particularly bullish for its current fiscal year, up 6%to $2.42 per share over the last year and suggesting 9% year-over-year growth. The stock presently sports a favorable Zacks Rank #2 (Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s shareholder-friendly is worthy of a highlight, with WMT upping its quarterly payout five times over the last five years. Shares presently yield 1.3% annually, nicely above the Zacks Retail sector average of 0.9%.

Zacks Investment Research
Image Source: Zacks Investment Research

e.l.f. Beauty

ELF shares soared post-earnings, helping snap a nasty downtrend. Up nearly 30% in 2024, shares have widely outperformed relative to the S&P 500, building on years of outsized gains. The company’s quarterly consistency can’t be overlooked, beating consensus earnings and revenue expectations in 10 consecutive releases.

The company’s growth has been remarkable, posting double-digit percentage year-over-year sales growth consistently. Concerning its latest release, earnings grew 15% alongside a sizable 71% sales bump.

Zacks Investment Research
Image Source: Zacks Investment Research

The stock remains a solid selection for growth-focused investors, underpinned by its Style Score of ‘B’ for Growth.

Bottom Line

Earnings season continues to slow, with the bulk of S&P 500 companies already delivering quarterly results.

And concerning positivity, that’s precisely what all three companies above – Crocs (CROX - Free Report) , e.l.f. Beauty (ELF - Free Report) , and Walmart (WMT - Free Report) – have delivered.


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