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Guidance lifts commonly inject positivity into shares, with investors scrambling to get in and ride the momentum. Companies raise their outlooks when business is fruitful, sending a bullish message to shareholders.
And in 2024, several companies, including Procter & Gamble (PG - Free Report) , Super Micro Computer (SMCI - Free Report) , and Abercrombie & Fitch (ANF - Free Report) , have raised their outlooks, with shares moving higher following the announcements.
For those interested in recent bullish activity, let’s take a closer look at each.
Super Micro Computer
Likely the most recognizable of the bunch due to the AI-frenzy, Super Micro Computer is the premier provider of advanced Server Building Block Solutions for 5G/Edge, Data Center, Cloud, Enterprise, Big Data, HPC, and Embedded markets worldwide.
The company delivered a remarkably strong guide for its 2024 Q2 thanks to a strong market and end customer demand for its rack-scale, AI, and Total IT Solutions. Net sales are expected in a band of $3.6 - $3.65 billion ($2.7 - $2.9 billion previously) and GAAP EPS of $4.90 - $5.05 per share ($3.75 - $4.24 per share previously.
Shares melted higher following the announcement, now up an astounding 57% on a year-to-date basis.
Image Source: Zacks Investment Research
Analysts have remained bullish on the company’s current fiscal year, with the current $17.13 Zacks Consensus EPS Estimate up more than 110% over the last year and unsurprisingly being raised further following the guidance update.
Image Source: Zacks Investment Research
The stock remains a prime selection for growth investors seeking AI exposure, with consensus expectations for its current year suggesting 45% earnings growth paired with a sizable 53% sales jump. It currently holds a Style Score of ‘A’ for Growth and is a Zacks Rank #1 (Strong Buy).
Procter & Gamble
Procter & Gamble just recently delivered its 2024 Q2 results, with the company exceeding the Zacks Consensus EPS Estimate easily and reporting sales a hair below expectations. Earnings improved 16% year-over-year thanks to an improved operating margin, whereas sales climbed 3% year-over-year.
Following the results, the company upped its FY24 core net EPS growth into a band of 8% - 9% vs. the previously expected 6% - 9%. Shares have seen bullish activity following the news, injecting positive sentiment as they try to break out of a nearly year-long consolidation period.
Image Source: Zacks Investment Research
Investors stand to reap a steady income stream from PG shares, as the company belongs to the elite Dividend Aristocrats group. Shares currently yield a solid 2.5% annually, with the payout growing by 6% annualized over the last five years.
Image Source: Zacks Investment Research
Abercrombie & Fitch
Abercrombie & Fitch, a current Zacks Rank #1 (Strong Buy), operates as a specialty retailer of many types of premium, high-quality casual apparel for men, women, and kids through a vast store network.
The strength of ANF shares has been nearly unparalleled over the last year, up a sizable 270% on the back of a string of positive quarterly releases.
Image Source: Zacks Investment Research
The retailer upped its Q4 and FY23 net sales and operating margin outlook following a hotter-than-expected holiday season, causing shares to see immense buying pressure following the announcement. ANF has continued to be a strong earnings performer overall, exceeding the Zacks Consensus EPS Estimate by an average of 700% across its last four releases.
A more favorable operating environment with easing costs is expected to lead to a growth recovery for ANF, with consensus expectations for its current fiscal year suggesting quad-digit earnings growth on 15% higher sales.
Bottom Line
Guidance lifts are among the most positive announcements shareholders can hear, injecting confidence in the long-term picture.
And recently, all three companies above – Procter & Gamble (PG - Free Report) , Super Micro Computer (SMCI - Free Report) , and Abercrombie & Fitch (ANF - Free Report) – have upped their outlooks, with shares of each moving higher in response.
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3 Hot Stocks to Buy Following Guidance Lifts
Guidance lifts commonly inject positivity into shares, with investors scrambling to get in and ride the momentum. Companies raise their outlooks when business is fruitful, sending a bullish message to shareholders.
And in 2024, several companies, including Procter & Gamble (PG - Free Report) , Super Micro Computer (SMCI - Free Report) , and Abercrombie & Fitch (ANF - Free Report) , have raised their outlooks, with shares moving higher following the announcements.
For those interested in recent bullish activity, let’s take a closer look at each.
Super Micro Computer
Likely the most recognizable of the bunch due to the AI-frenzy, Super Micro Computer is the premier provider of advanced Server Building Block Solutions for 5G/Edge, Data Center, Cloud, Enterprise, Big Data, HPC, and Embedded markets worldwide.
The company delivered a remarkably strong guide for its 2024 Q2 thanks to a strong market and end customer demand for its rack-scale, AI, and Total IT Solutions. Net sales are expected in a band of $3.6 - $3.65 billion ($2.7 - $2.9 billion previously) and GAAP EPS of $4.90 - $5.05 per share ($3.75 - $4.24 per share previously.
Shares melted higher following the announcement, now up an astounding 57% on a year-to-date basis.
Image Source: Zacks Investment Research
Analysts have remained bullish on the company’s current fiscal year, with the current $17.13 Zacks Consensus EPS Estimate up more than 110% over the last year and unsurprisingly being raised further following the guidance update.
Image Source: Zacks Investment Research
The stock remains a prime selection for growth investors seeking AI exposure, with consensus expectations for its current year suggesting 45% earnings growth paired with a sizable 53% sales jump. It currently holds a Style Score of ‘A’ for Growth and is a Zacks Rank #1 (Strong Buy).
Procter & Gamble
Procter & Gamble just recently delivered its 2024 Q2 results, with the company exceeding the Zacks Consensus EPS Estimate easily and reporting sales a hair below expectations. Earnings improved 16% year-over-year thanks to an improved operating margin, whereas sales climbed 3% year-over-year.
Following the results, the company upped its FY24 core net EPS growth into a band of 8% - 9% vs. the previously expected 6% - 9%. Shares have seen bullish activity following the news, injecting positive sentiment as they try to break out of a nearly year-long consolidation period.
Image Source: Zacks Investment Research
Investors stand to reap a steady income stream from PG shares, as the company belongs to the elite Dividend Aristocrats group. Shares currently yield a solid 2.5% annually, with the payout growing by 6% annualized over the last five years.
Image Source: Zacks Investment Research
Abercrombie & Fitch
Abercrombie & Fitch, a current Zacks Rank #1 (Strong Buy), operates as a specialty retailer of many types of premium, high-quality casual apparel for men, women, and kids through a vast store network.
The strength of ANF shares has been nearly unparalleled over the last year, up a sizable 270% on the back of a string of positive quarterly releases.
Image Source: Zacks Investment Research
The retailer upped its Q4 and FY23 net sales and operating margin outlook following a hotter-than-expected holiday season, causing shares to see immense buying pressure following the announcement. ANF has continued to be a strong earnings performer overall, exceeding the Zacks Consensus EPS Estimate by an average of 700% across its last four releases.
A more favorable operating environment with easing costs is expected to lead to a growth recovery for ANF, with consensus expectations for its current fiscal year suggesting quad-digit earnings growth on 15% higher sales.
Bottom Line
Guidance lifts are among the most positive announcements shareholders can hear, injecting confidence in the long-term picture.
And recently, all three companies above – Procter & Gamble (PG - Free Report) , Super Micro Computer (SMCI - Free Report) , and Abercrombie & Fitch (ANF - Free Report) – have upped their outlooks, with shares of each moving higher in response.