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Time to Buy the Dip in These Top-Rated Stocks After Earnings?
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There were a few top-rated Zacks stocks that dipped today after reporting quarterly results and this may have presented even better buying opportunities.
Here is a look at three top-rated stocks investors and traders will certainly want to watch as they make the case for buying the dip following their quarterly reports.
Norwegian Cruise Line ((NCLH - Free Report) ): Today’s selloff in Norwegian Cruise Line’s stock may present an intriguing opportunity in the consumer discretionary sector. Norwegian stock currently sports a Zacks Rank #2 (Buy) as the cruise company continues to regain its footing following the pandemic.
To that point, Norwegian's second-quarter earnings of $0.30 a share topped estimates by 11% and soared from an adjusted loss of -$1.14 a share in the prior-year quarter. On the top line, sales of $2.20 billion surpassed expectations by 1% and soared 86% from a year ago.
Still, Norwegian stock fell -12% today primarily attributed to the company’s EPS guidance being below many analysts’ estimates for the third quarter. Norwegian expects Q3 EPS at $0.70 which is also below the Zacks Consensus of $0.80 a share. With that being said, today’s selloff may have already served as a healthy correction.
Image Source: Zacks Investment Research
Rockwell Automation (ROK - Free Report) ):Falling -7% today Rockwell Automation’s stock could be a buy-the-dip candidate after slightly missing its fiscal third-quarter top and bottom line expectations this morning.
Providing industrial automation and information services, Rockwell stock currently has a Zacks Rank #2 (Buy). Retaining this favorable ranking will largely depend on the trend in earnings estimate revisions following the report as the selloff may present opportunity for longer-term investors.
Rockwell’s Q3 earnings missed expectations by -5% at $3.01 per share compared to EPS estimates of $3.19. However, this was still up 13% from Q3 earnings of $2.66 per share a year ago. Quarterly sales were up 14% YoY to $2.23 billion but fell -2% short of expectations.
Despite the weaker-than-expected results, Rockwell’s quarterly growth was still strong and the company raised the midpoint of its fiscal 2023 earnings and sales growth guidance. Rockwell now expects FY23 sales growth at a range of 14-16% from previous guidance of 12.5-16.5% with the Zacks Consensus calling for about 15% sales growth. Annual EPS guidance from Rockwell is now at a range between $11.70-12.10 compared to previous guidance of $11.50-12.20 with the Zacks Consensus for FY23 earnings at $12.02 a share which would be up 26% from 2022.
Image Source: Zacks Investment Research
Uber Technologies (UBER - Free Report) ): There were many eyes on Uber’s stock today which dipped -5% after reporting its Q2 results this morning.
Uber also sports a Zacks Rank #2 (Buy) and the pullback appears to be some profit-taking mixed with concerns of lower demand among the company’s freight segment. Sales for Uber’s Freight and Transportation services fell -30% YoY to $1.28 billion and the segment posted an operating loss of -$14 million compared to a profit of $5 million a year ago.
Uber still crushed earnings expectations with EPS at $0.18 compared to estimates that called for an adjusted loss of -$0.01 a share. This also soared from an adjusted loss of -$1.33 a share in Q2 2022. Sales of $9.23 billion rose 14% YoY but missed estimates by -1%.
Analysts still appeared to be optimistic about Uber’s stock despite lowering lofty price targets on Uber freight concerns. To that point, the current Average Zacks Price Target of $53.84 a share still suggests 14% upside from current levels.
Image Source: Zacks Investment Research
Bottom Line
For now, Norwegian Curse Line, Rockwell Automation, and Uber Technologies stock still look attractive at their current levels and today’s selloff may have presented even better buying opportunities. The long-term prospects of these companies is intriguing and they are certainly buy the dip canidates.
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Time to Buy the Dip in These Top-Rated Stocks After Earnings?
There were a few top-rated Zacks stocks that dipped today after reporting quarterly results and this may have presented even better buying opportunities.
Here is a look at three top-rated stocks investors and traders will certainly want to watch as they make the case for buying the dip following their quarterly reports.
Norwegian Cruise Line ((NCLH - Free Report) ): Today’s selloff in Norwegian Cruise Line’s stock may present an intriguing opportunity in the consumer discretionary sector. Norwegian stock currently sports a Zacks Rank #2 (Buy) as the cruise company continues to regain its footing following the pandemic.
To that point, Norwegian's second-quarter earnings of $0.30 a share topped estimates by 11% and soared from an adjusted loss of -$1.14 a share in the prior-year quarter. On the top line, sales of $2.20 billion surpassed expectations by 1% and soared 86% from a year ago.
Still, Norwegian stock fell -12% today primarily attributed to the company’s EPS guidance being below many analysts’ estimates for the third quarter. Norwegian expects Q3 EPS at $0.70 which is also below the Zacks Consensus of $0.80 a share. With that being said, today’s selloff may have already served as a healthy correction.
Image Source: Zacks Investment Research
Rockwell Automation (ROK - Free Report) ): Falling -7% today Rockwell Automation’s stock could be a buy-the-dip candidate after slightly missing its fiscal third-quarter top and bottom line expectations this morning.
Providing industrial automation and information services, Rockwell stock currently has a Zacks Rank #2 (Buy). Retaining this favorable ranking will largely depend on the trend in earnings estimate revisions following the report as the selloff may present opportunity for longer-term investors.
Rockwell’s Q3 earnings missed expectations by -5% at $3.01 per share compared to EPS estimates of $3.19. However, this was still up 13% from Q3 earnings of $2.66 per share a year ago. Quarterly sales were up 14% YoY to $2.23 billion but fell -2% short of expectations.
Despite the weaker-than-expected results, Rockwell’s quarterly growth was still strong and the company raised the midpoint of its fiscal 2023 earnings and sales growth guidance. Rockwell now expects FY23 sales growth at a range of 14-16% from previous guidance of 12.5-16.5% with the Zacks Consensus calling for about 15% sales growth. Annual EPS guidance from Rockwell is now at a range between $11.70-12.10 compared to previous guidance of $11.50-12.20 with the Zacks Consensus for FY23 earnings at $12.02 a share which would be up 26% from 2022.
Image Source: Zacks Investment Research
Uber Technologies (UBER - Free Report) ): There were many eyes on Uber’s stock today which dipped -5% after reporting its Q2 results this morning.
Uber also sports a Zacks Rank #2 (Buy) and the pullback appears to be some profit-taking mixed with concerns of lower demand among the company’s freight segment. Sales for Uber’s Freight and Transportation services fell -30% YoY to $1.28 billion and the segment posted an operating loss of -$14 million compared to a profit of $5 million a year ago.
Uber still crushed earnings expectations with EPS at $0.18 compared to estimates that called for an adjusted loss of -$0.01 a share. This also soared from an adjusted loss of -$1.33 a share in Q2 2022. Sales of $9.23 billion rose 14% YoY but missed estimates by -1%.
Analysts still appeared to be optimistic about Uber’s stock despite lowering lofty price targets on Uber freight concerns. To that point, the current Average Zacks Price Target of $53.84 a share still suggests 14% upside from current levels.
Image Source: Zacks Investment Research
Bottom Line
For now, Norwegian Curse Line, Rockwell Automation, and Uber Technologies stock still look attractive at their current levels and today’s selloff may have presented even better buying opportunities. The long-term prospects of these companies is intriguing and they are certainly buy the dip canidates.