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Several high-growth stocks reconfirmed their enticing outlooks after exceeding earnings expectations last week.
The strong quarterly results make now an ideal time to invest in these expansive companies as their stellar growth could lead to lofty gains in the portfolio.
Elastic (ESTC - Free Report) : Reporting its fiscal second quarter results last Thursday, the growth of cloud analytics company Elastic is very hard to overlook at the moment.
The Netherland-based cloud data and search provider posted Q2 earnings of $0.37 a share which topped the Zacks Consensus of $0.24 a share by 54% and soared from a break-even quarter last year.
Elastic has now exceeded the Zacks EPS Consensus for 20 consecutive quarters and every quarter since it went public in October of 2018. More impressive, Elastic has posted a remarkable average earnings surprise of 141% in its last four quarterly reports.
Image Source: Zacks Investment Research
On the top line, Q2 sales of $310.61 million beat estimates by 2% and rose 17% from $264.4 million in the prior year quarter. Elastic’s stock has skyrocketed +115% this year as annual EPS is now forecasted to expand 324% in its current fiscal 2024 to $1.06 per share compared to earnings of $0.25 a share in FY23.
Fiscal 2025 earnings are projected to climb another 41% with total sales expected to expand 16% in FY24 and jump another 18% in FY25 to $1.47 billion.
Image Source: Zacks Investment Research
Okta (OKTA - Free Report) : Another tech company that appears to be on the verge of very expansive growth after reporting strong quarterly results last Wednesday is Okta Inc. As a provider of identity for the enterprise, Okta’s secure and neutral cloud-based platform allows users to integrate with nearly any application, service, or cloud.
Increasing in popularity, Okta’s third quarter earnings of $0.44 a share crushed expectations of $0.30 a share by 46% and soared from a break-even quarter last year. Quarterly sales of $584 million came in 4% better than expected and jumped 21% YoY.
Furthermore, Okta has now surpassed the Zacks EPS Consensus for an astonishing 25 consecutive quarters and has posted an average earnings surprise of 30% in its last four quarterly reports.
Image Source: Zacks Investment Research
With Okta’s stock up +6% this year, annual earnings are forecasted at $1.23 per share in its current FY24 versus an adjusted loss of -$0.04 a share in FY23. Fiscal 2025 EPS is expected to expand another 29% at $1.59 a share.
Making Okta’s road to profitability more intriguing is that total sales are projected to jump 20% in FY24 and rise another 10% in FY25 to $2.47 billion.
Image Source: Zacks Investment Research
PVH (PVH - Free Report) : Rounding out this list of high-growth stocks is PVH Corporation which specializes in designing and marketing branded clothing, footwear, and handbags among other related products.
Last Wednesday, PVH’s Q3 earnings of $2.90 per share surpassed expectations by 6% despite sales of $2.36 billion missing estimates by -1%. Still, Q3 EPS rose 11% YoY with sales up 3% from the comparative quarter. Notably, PVH has surpassed earnings expectations for 11 straight quarters and posted an average earnings surprise of 19% in its last four quarterly reports.
Image Source: Zacks Investment Research
With steady growth in the forecast, PVH’s annual earnings are now expected to leap 16% in its current FY24 and jump another 11% in FY25 to $11.57 per share. Total sales are projected to be up 3% in FY24 and rise another 3% in FY25 to $9.64 billion.
This is strong growth for a company that has been around since 1976 and more alluring is that PVH shares have soared +48% YTD but still trade at a very reasonable 9.5X forward earnings multiple.
Image Source: Zacks Investment Research
Bottom Line
At the moment Elastic, Okta, and PVH shares all sport a Zacks Rank #2 (Buy) and are three very appealing growth stocks as their earnings outlook continues to strengthen. Continuing their streaks of exceeding quarterly earnings expectations, the expansion of these companies should definitely be on investors' radars.
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3 High Growth Stocks to Buy After Earnings
Several high-growth stocks reconfirmed their enticing outlooks after exceeding earnings expectations last week.
The strong quarterly results make now an ideal time to invest in these expansive companies as their stellar growth could lead to lofty gains in the portfolio.
Elastic (ESTC - Free Report) : Reporting its fiscal second quarter results last Thursday, the growth of cloud analytics company Elastic is very hard to overlook at the moment.
The Netherland-based cloud data and search provider posted Q2 earnings of $0.37 a share which topped the Zacks Consensus of $0.24 a share by 54% and soared from a break-even quarter last year.
Elastic has now exceeded the Zacks EPS Consensus for 20 consecutive quarters and every quarter since it went public in October of 2018. More impressive, Elastic has posted a remarkable average earnings surprise of 141% in its last four quarterly reports.
Image Source: Zacks Investment Research
On the top line, Q2 sales of $310.61 million beat estimates by 2% and rose 17% from $264.4 million in the prior year quarter. Elastic’s stock has skyrocketed +115% this year as annual EPS is now forecasted to expand 324% in its current fiscal 2024 to $1.06 per share compared to earnings of $0.25 a share in FY23.
Fiscal 2025 earnings are projected to climb another 41% with total sales expected to expand 16% in FY24 and jump another 18% in FY25 to $1.47 billion.
Image Source: Zacks Investment Research
Okta (OKTA - Free Report) : Another tech company that appears to be on the verge of very expansive growth after reporting strong quarterly results last Wednesday is Okta Inc. As a provider of identity for the enterprise, Okta’s secure and neutral cloud-based platform allows users to integrate with nearly any application, service, or cloud.
Increasing in popularity, Okta’s third quarter earnings of $0.44 a share crushed expectations of $0.30 a share by 46% and soared from a break-even quarter last year. Quarterly sales of $584 million came in 4% better than expected and jumped 21% YoY.
Furthermore, Okta has now surpassed the Zacks EPS Consensus for an astonishing 25 consecutive quarters and has posted an average earnings surprise of 30% in its last four quarterly reports.
Image Source: Zacks Investment Research
With Okta’s stock up +6% this year, annual earnings are forecasted at $1.23 per share in its current FY24 versus an adjusted loss of -$0.04 a share in FY23. Fiscal 2025 EPS is expected to expand another 29% at $1.59 a share.
Making Okta’s road to profitability more intriguing is that total sales are projected to jump 20% in FY24 and rise another 10% in FY25 to $2.47 billion.
Image Source: Zacks Investment Research
PVH (PVH - Free Report) : Rounding out this list of high-growth stocks is PVH Corporation which specializes in designing and marketing branded clothing, footwear, and handbags among other related products.
Last Wednesday, PVH’s Q3 earnings of $2.90 per share surpassed expectations by 6% despite sales of $2.36 billion missing estimates by -1%. Still, Q3 EPS rose 11% YoY with sales up 3% from the comparative quarter. Notably, PVH has surpassed earnings expectations for 11 straight quarters and posted an average earnings surprise of 19% in its last four quarterly reports.
Image Source: Zacks Investment Research
With steady growth in the forecast, PVH’s annual earnings are now expected to leap 16% in its current FY24 and jump another 11% in FY25 to $11.57 per share. Total sales are projected to be up 3% in FY24 and rise another 3% in FY25 to $9.64 billion.
This is strong growth for a company that has been around since 1976 and more alluring is that PVH shares have soared +48% YTD but still trade at a very reasonable 9.5X forward earnings multiple.
Image Source: Zacks Investment Research
Bottom Line
At the moment Elastic, Okta, and PVH shares all sport a Zacks Rank #2 (Buy) and are three very appealing growth stocks as their earnings outlook continues to strengthen. Continuing their streaks of exceeding quarterly earnings expectations, the expansion of these companies should definitely be on investors' radars.