The 10 Best Stocks This Earnings Season

Print Email

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.

Twitter

When Twitter Inc. (NYSE: TWTR) released its third-quarter financial results before the markets opened on Thursday, October 25, the social media giant said that it had $0.21 EPS and $758.1 million in revenue. That compared with consensus estimates of $0.14 in EPS and $702.57 million in revenue, as well as the $0.10 per share and $589.63 million posted in the same period of last year.

During the latest quarter, average daily active users increased 9% year over year, compared to 14% in the same period of the previous year and to 11% in the previous quarter.

Average monthly active users numbered 326 million for the third quarter, compared to 330 million in the same period of the previous year and to 335 million in the previous quarter.

At that time, shares of Twitter climbed about 15% on the results. Shares are now trading at $34.69, with a consensus price target of $34.45 and a 52-week range of $17.03 to $47.79.

Under Armour

Under Armour Inc. (NYSE: UAA) released its third-quarter earnings report before the markets opened on Tuesday, October 30. The sports apparel firm posted $0.25 in EPS on $1.44 billion in revenue. Consensus estimates were $0.12 in EPS and revenue of $1.42 billion, and in the same period of last year, it reported EPS of $0.22 and $1.41 billion in revenue.

Looking ahead to the 2018 full year, the company expects to see EPS in the range of $0.19 to $0.22 (up from the previous range of $0.16 to $0.19) and revenue to increase approximately 3% to 4%. Consensus estimates call for $0.17 in EPS and $5.18 billion in revenue for the year.

At that time, shares of Under Armour climbed about 28% on the results. Shares are now trading at $23.11, with a consensus price target of $21.44 and a 52-week range of $11.67 to $24.69.

GM

General Motors Co. (NYSE: GM) reported third-quarter 2018 results before markets opened Wednesday, October 31. The automaker posted adjusted diluted EPS of $1.87 on revenues of $35.79 billion. In the same period a year ago, the company reported EPS of $1.32 on revenues of $33.62 billion. Third-quarter results also compared to the consensus estimates for EPS of $1.25 and $34.85 billion in revenues.

GM raised its adjusted full-year EPS guidance from $6.00 a share to $6.20. Consensus estimates call for fourth-quarter EPS of $1.36 and revenues of $37.11 billion. For the full year, analysts are looking for EPS of $5.89 and revenues of $145.5 billion.

It’s worth noting that the full-year estimates dropped sharply over the course of the third quarter. When GM reported second-quarter results in July, analysts were looking for EPS of $6.41 and revenues of $145.98 billion for the full year.

Shares of General Motors climbed about 9% after the results were released. They are now trading at $36.87, with a consensus price target of $44.75 and a 52-week range of $30.56 to $45.52.

Fitbit

Fitbit Inc. (NYSE: FIT) reported its third-quarter financial results after the markets closed on Wednesday, October 31. The company said that it had $0.04 in EPS and $393.6 million in revenue, compared with consensus estimates that called for a net loss of $0.01 per share and revenue of $381.21 million. The same period of last year reportedly had a net loss of $0.01 per share and $392.52 million in revenue.

During this quarter, the company sold 3.5 million devices. Also, new products introduced in the past year represented 62% of revenue. The average selling price was up 3% year over year to $108.

At that time, shares of Fitbit climbed about 26% on the results. Shares were last seen trading at $6.34, with a consensus price target of $6.50 and a 52-week range of $4.46 to $7.79.

Mylan

When Mylan N.V. (NASDAQ: MYL) reported its most recent quarterly results after the markets closed on Monday, November 6, the company said that it had $1.25 in EPS and $2.86 billion in revenue. The consensus estimates had called for $1.17 in EPS and $2.87 billion in revenue. In the third quarter of last year, it said it had EPS of $1.10 on revenue of $2.99 billion.

In this past quarter, the decrease in total revenues included lower net sales in the North America segment of 14%. This decrease was partially offset by increased net sales in the Rest of World segment of 4%. Net sales in the Europe segment were essentially flat. The overall decrease in total revenues was driven primarily by a decrease in net sales from existing products.

At that time, shares of Mylan climbed about 16% on the results. They are now trading at $36.56, with a consensus price target of $44.56 and a 52-week range of $30.33 to $47.82.