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Looking for Turnaround Plays? 5 EPS Reports to Watch this Week
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Though last week showcased earnings from mega tech giants such as Apple (AAPL - Free Report) , Meta Platforms (META - Free Report) , and Alphabet (GOOGL - Free Report) , Wall Street is still in the heart of earnings season. Below we will discuss 5 key earnings reports to monitor this week:
Tuesday, February 7th After the Market Close:
Enphase Energy (ENPH) is a global solar technology company that delivers energy management technology to the solar industry. Over the past two quarters, Enphase has delivered robust triple-digit EPS growth of 108% and 102% on revenue growth of 81% and 68%. Despite the impressive fundamental backdrop, shares of ENPH have underperformed its solar peers such as First Solar (FSLR - Free Report) .
Image Source: Zacks Investment Research
One potential reason that ENPH’s consensus analyst estimates for 2023 have dropped in recent weeks.
Image Source: Zacks Investment Research
The stock has also gone from having a best possible Zacks ranking of 1 to having a mediocre ranking of 3. ENPH also has a negative Expected Surprise Prediction (ESP) number suggesting that shares are likely to underperform on earnings. Investors should watch to see if the company can defy analyst expectations and continue to deliver strong results.
Chipotle Mexican Grill (CMG - Free Report) is an early entrant and leader in the “fast-casual” food space due to its popular Mexican food chain and burritos. The company gained popularity due to its low-cost yet healthy food offering. Chipotle only uses hormone-free pork and natural chicken ingredients, which are cooked through traditional methods. Though the stock has had a difficult couple of years, elevated inflation may be working in the company’s favor. While most prominent tech companies are laying off thousands of employees, CMG is bucking that trend. Recently, the burrito giant announced that it is looking to hire 15,000 new employees.
Wednesday, February 8th Before the Market Open:
Uber Technologies (UBER - Free Report) is the largest ride-sharing company in the world. Despite its massive market cap and name recognition, Uber has yet to turn an annual profit as a public company. Uber and its most significant competitor Lyft (LYFT - Free Report) have underperformed the S&P 500 since debuting but have tried to turn the corner in recent weeks. Each is up six straight weeks into their earnings reports this week (LYFT is expected to report Thursday after the close)
Image Source: Zacks Investment Research
Lyft is likely to move in sympathy with Uber’s Wednesday report. However, presently Lyft is a more robust stock from a fundamental lens. Lyft has a strong Zacks rank of 2, and a positive Earnings Expected Price Surprise (ESP).
Image Source: Zacks Investment Research
Wednesday, February 8th After the Market Close:
Robinhood Markets (HOOD - Free Report) is a registered broker-dealer and one of the most popular online brokers for online traders. Robinhood shares quickly doubled after debuting in September 202. However, they have careened lower since that time.
Image Source: Zacks Investment Research
The question investors want to be answered is, “was Robinhood’s early success due to an unusual market environment, or can it be sustained?”. When Robinhood debuted, the market was flooded with retail investors who were stuck at home during the pandemic. After the recent, bear market on Wall Street, interest has clearly cooled off. Now as stocks rally back, Robinhood’s earnings should be telling.
Another concern for investors is the investment by now-bankrupt crypto firm FTX. Early last month, the Department of Justice (DOJ) seized more than 50 million shares of HOOD that FTX owned. The stock has been surprisingly resilient since the announcement, but investors should learn more in Wednesday’s earnings conference call.
Thursday, February 9th After the Market Close:
Cloudflare Inc (NET - Free Report) is an enterprise software provider focusing on software for firewall, routing, and traffic optimization. Last cycle, the stock was an unquestionable market leader. Shares saw a meteoric rise from mid-teens in 2019 to more than $200 a share in late 2021 before topping. In its latest reported quarter, the company reported EPS growth of 500% on revenue growth of 47%. Since inception, the 200-day moving average has been a good barometer from a technical standpoint. The stock was above it through its entire multi-year run, and when the stock undercut the 200-day moving average in early 2022, it marked the beginning of the end. Now, shares have regained the 200-day once again. Investors will watch to see if the stock can produce a turnaround play.
Image Source: Zacks Investment Research
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Looking for Turnaround Plays? 5 EPS Reports to Watch this Week
Though last week showcased earnings from mega tech giants such as Apple (AAPL - Free Report) , Meta Platforms (META - Free Report) , and Alphabet (GOOGL - Free Report) , Wall Street is still in the heart of earnings season. Below we will discuss 5 key earnings reports to monitor this week:
Tuesday, February 7th After the Market Close:
Enphase Energy (ENPH) is a global solar technology company that delivers energy management technology to the solar industry. Over the past two quarters, Enphase has delivered robust triple-digit EPS growth of 108% and 102% on revenue growth of 81% and 68%. Despite the impressive fundamental backdrop, shares of ENPH have underperformed its solar peers such as First Solar (FSLR - Free Report) .
Image Source: Zacks Investment Research
One potential reason that ENPH’s consensus analyst estimates for 2023 have dropped in recent weeks.
Image Source: Zacks Investment Research
The stock has also gone from having a best possible Zacks ranking of 1 to having a mediocre ranking of 3. ENPH also has a negative Expected Surprise Prediction (ESP) number suggesting that shares are likely to underperform on earnings. Investors should watch to see if the company can defy analyst expectations and continue to deliver strong results.
Chipotle Mexican Grill (CMG - Free Report) is an early entrant and leader in the “fast-casual” food space due to its popular Mexican food chain and burritos. The company gained popularity due to its low-cost yet healthy food offering. Chipotle only uses hormone-free pork and natural chicken ingredients, which are cooked through traditional methods. Though the stock has had a difficult couple of years, elevated inflation may be working in the company’s favor. While most prominent tech companies are laying off thousands of employees, CMG is bucking that trend. Recently, the burrito giant announced that it is looking to hire 15,000 new employees.
Wednesday, February 8th Before the Market Open:
Uber Technologies (UBER - Free Report) is the largest ride-sharing company in the world. Despite its massive market cap and name recognition, Uber has yet to turn an annual profit as a public company. Uber and its most significant competitor Lyft (LYFT - Free Report) have underperformed the S&P 500 since debuting but have tried to turn the corner in recent weeks. Each is up six straight weeks into their earnings reports this week (LYFT is expected to report Thursday after the close)
Image Source: Zacks Investment Research
Lyft is likely to move in sympathy with Uber’s Wednesday report. However, presently Lyft is a more robust stock from a fundamental lens. Lyft has a strong Zacks rank of 2, and a positive Earnings Expected Price Surprise (ESP).
Image Source: Zacks Investment Research
Wednesday, February 8th After the Market Close:
Robinhood Markets (HOOD - Free Report) is a registered broker-dealer and one of the most popular online brokers for online traders. Robinhood shares quickly doubled after debuting in September 202. However, they have careened lower since that time.
Image Source: Zacks Investment Research
The question investors want to be answered is, “was Robinhood’s early success due to an unusual market environment, or can it be sustained?”. When Robinhood debuted, the market was flooded with retail investors who were stuck at home during the pandemic. After the recent, bear market on Wall Street, interest has clearly cooled off. Now as stocks rally back, Robinhood’s earnings should be telling.
Another concern for investors is the investment by now-bankrupt crypto firm FTX. Early last month, the Department of Justice (DOJ) seized more than 50 million shares of HOOD that FTX owned. The stock has been surprisingly resilient since the announcement, but investors should learn more in Wednesday’s earnings conference call.
Thursday, February 9th After the Market Close:
Cloudflare Inc (NET - Free Report) is an enterprise software provider focusing on software for firewall, routing, and traffic optimization. Last cycle, the stock was an unquestionable market leader. Shares saw a meteoric rise from mid-teens in 2019 to more than $200 a share in late 2021 before topping. In its latest reported quarter, the company reported EPS growth of 500% on revenue growth of 47%. Since inception, the 200-day moving average has been a good barometer from a technical standpoint. The stock was above it through its entire multi-year run, and when the stock undercut the 200-day moving average in early 2022, it marked the beginning of the end. Now, shares have regained the 200-day once again. Investors will watch to see if the stock can produce a turnaround play.
Image Source: Zacks Investment Research