The 10 Best Stocks This Earnings Season

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Although the main part of earnings season has passed, there are still some major companies reporting, and there have been a few standouts, helping the broad markets despite a rough October. Election Day has come and gone. Hopefully, the uncertainty and selling pressure felt by investors leading up to Tuesday has been alleviated.

It’s worth pointing out that the S&P 500 and Dow Jones industrials are down 4.8% and 3.4% from their respective 52-week and all-time highs. Year to date, the S&P 500 and Dow are positive 3.1% and 3.6%, respectively.

While the broad markets are just barely positive for the year after a devastating October, here 24/7 Wall St. has included 10 stocks that saw the best earnings performance this season.

We have included some of the highlights from these earnings reports, as well as the consensus price target and a recent trading history of the stock.

Netflix

Netflix Inc. (NASDAQ: NFLX) released its third-quarter earnings report after the markets closed on Tuesday, October 16. The online streaming giant posted $0.89 in earnings per share (EPS) and $4.0 billion in revenue, which compares with consensus estimates from Thomson Reuters calling for $0.68 in EPS and $4.0 billion in revenue.

During the second quarter, global net additions totaled 6.96 million. In the United States, Netflix added 1.09 million memberships. Internationally, the firm added 5.87 million memberships.

At that time, shares of Netflix climbed about 5% on the results. Shares are now trading at $327.58, with a consensus analyst price target of $399.78 and a 52-week trading range of $178.38 to $423.21.

McDonald’s

McDonald’s Corp. (NYSE: MCD) released its third-quarter financial results before the markets opened on Tuesday, October 23. The golden arches said that it had $2.10 in EPS and $5.37 billion in revenue, which compares with consensus estimates of $1.99 in EPS and $5.32 billion in revenue.

Global comparable sales increased 4.2% in the quarter, reflecting positive comparable sales in all segments. Systemwide sales increased 5% in constant currencies.

At that time, shares of McDonald’s climbed over 6% on the results. Shares are now trading at $183.07, with a consensus price target of $191.81 and a 52-week range of $146.84 to $183.91.

Boeing

Boeing Co. (NYSE: BA) reported third-quarter 2018 results before markets opened Wednesday, October 24. The aerospace company posted adjusted diluted EPS of $3.58 on revenues of $25.15 billion. In the same period a year ago, the company reported EPS of $2.62 per share on revenues of $24.22 billion. Third-quarter results also compared to consensus estimates for EPS of $3.47 and $23.98 billion in revenues.

Boeing raised its revenue forecast by $1 billion at each end to a new range of $98 billion to $100 billion for the year. The company said that defense volume and services growth, including the acquisition of KLX, drove the increase. Adjusted EPS guidance was raised by $0.60 at each end to a new range of $14.90 to $15.10. The company said the increase was due to a lower-than-expected tax rate and improved performance in its commercial aircraft division.

At that time, shares of Boeing climbed only 1% on the results. Shares are now trading at $369.31, with a consensus price target of $415.09 and a 52-week range of $259.56 to $394.28.

Tesla

Tesla Inc. (NASDAQ: TSLA) reported third-quarter financial results after markets closed Wednesday, October 24. Despite the tumultuous quarter that Tesla has survived, the company managed to post an incredible beat on the bottom line, not to mention other wins with its Model 3.

The company reported $2.90 in EPS on $6.82 billion in revenue, compared with consensus estimates of a net loss of $0.19 per share and $6.3 billion in revenue. The same period of last year had a net loss of $2.92 per share and $2.98 billion in revenue.

Given the growth of Model 3, Tesla delivered almost 70,000 vehicles (Model 3, Model S and Model X) in the United States in the third quarter. Automotive revenue increased by 82% sequentially, mainly due to a sharp increase in Model 3 deliveries.

In the third quarter, Tesla delivered 56,065 Model 3s to customers. Separately the company delivered 27,710 Model S and X vehicles in the quarter as well.

At that time, shares of Tesla climbed about 9% on the results. Shares are now trading at $350.36, with a consensus price target of $324.37 and a 52-week range of $244.59 to $387.46.

Ford

Ford Motor Co. (NYSE: F) reported third-quarter 2018 results after markets closed Wednesday, October 24. For the quarter, the automaker posted adjusted diluted EPS of $0.29 on revenues of $37.7 billion. In the same period a year ago, the company reported EPS of $0.44 on revenues of $33.65 billion. Analysts were looking for EPS of $0.28 and revenues of $33.3 billion.

In terms of its regions, Ford reported:

  • North America revenues increased 6.3% year over year to $22.3 billion.
  • South America revenues decreased 15.4% to $1.3 billion.
  • Europe revenues increased 6.8% to $7.4 billion.
  • Middle East & Africa revenues decreased 6.8% to $0.6 billion.
  • Asia Pacific revenues decreased 19.4% to $3.1 billion.

At that time, shares of Ford climbed about 10% on the results. Shares are now trading at $9.57, with a consensus price target of $9.88 and a 52-week range of $8.17 to $13.48.