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2 High Growth Stocks to Buy After Earnings This Week
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Reporting their fourth quarter results this week, Abercrombie & Fitch (ANF - Free Report) and CrowdStrike (CRWD - Free Report) reconfirmed they have the expansion efforts that investors look for. The popular retail apparel company and innovative next-gen cyber security firm posted sound sales growth and strong improvements in profitability.
Making Abercrombie & Fitch and CrowdStrike shares more attractive is that their operating efficiency may sustain their impeccable year-to-date rallies.
Image Source: Zacks Investment Research
Robust Q4 Growth
On Wednesday, Abercrombie & Fitch flexed its ability to capitalize on the holiday shopping season stating its Q4 net income came in at $158.4 million (Non-GAAP) and more than 300% above the $38.33 million the company brought in a year ago.
This translated into earnings of $2.97 per share which topped the Zacks Consensus by 5% and skyrocketed from $0.81 a share in the comparative quarter. On the top line, Q4 sales of $1.45 billion beat estimates by 2% and spiked 21% year over year. Pricing power along with lower operating costs attributed to the impressive holiday profit and Abercrombie & Fitch has surpassed earnings expectations in each of its last four quarterly reports.
Image Source: Zacks Investment Research
As for CrowdStrike which reported its Q4 results on Tuesday, adoption of its endpoint cloud-delivered security services continues to accelerate. CrowdStrike achieved a fourth consecutive quarter of record net income at $236.2 million (Non-GAAP) which more than doubled from $111.6 million in the prior year quarter. Earnings of $0.95 per share soared 102% YoY and topped estimates by 16%. Quarterly sales expanded 34% to $845.34 million and beat by 1%. Furthermore, CrowdStrike has now beaten earnings expectations for 19 consecutive quarters.
Image Source: Zacks Investment Research
ANF & CRWD Price Performance is No Fluke
Abercrombie & Fitch and CrowdStrike’s strong price performance this year is not unordinary although the retail industry witnessed a slowdown amid high inflation and larger software titans such as Microsoft (MSFT - Free Report) ) are usually in the spotlight. That said, over the last five years ANF and CRWD have been two of the market’s top performers catapulting over +400% respectively to impressively outperform the broader indexes.
Image Source: Zacks Investment Research
In fact, Abercrombie & Fitch’s post-pandemic surge has seen the fashion apparel retailer rebound to new heights after refocusing its brands including Hollister and Gilly Hicks to fit trends among younger generations. Sustaining its eye-catching growth over the last few years will be a tall task but ANF shares trade at a reasonable 20.8X forward earnings multiple with EPS projected to rise 3% in its current fiscal 2025 to $6.48 per share. Plus, Abercrombie & Fitch has continued to progress towards its target of bringing in $5 billion in annual sales.
Image Source: Zacks Investment Research
In the midst of its expansion, CrowdStrike’s execution and focus on profitability have remained compelling since going public in 2019. Annual earnings are expected to jump 18% in CrowdStrike’s current FY25 and leap another 24% in FY26 to $4.53 per share. Accompanied by high double-digit percent growth on its top line, CrowdStrike’s operating and free cash flow has been reassuring as well after reaching record levels regarding this mark during Q4.
Image Source: Zacks Investment Research
Bottom Line
Investing in Abercrombie & Fitch and CrowdStrike has continued to be rewarding thanks to their focus on improvements in operating effeciency while maintaing thier growth. At the moment Abercrombie & Fitch and CrowdStrike’s stock both sport a Zacks Rank #2 (Buy).
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2 High Growth Stocks to Buy After Earnings This Week
Reporting their fourth quarter results this week, Abercrombie & Fitch (ANF - Free Report) and CrowdStrike (CRWD - Free Report) reconfirmed they have the expansion efforts that investors look for. The popular retail apparel company and innovative next-gen cyber security firm posted sound sales growth and strong improvements in profitability.
Making Abercrombie & Fitch and CrowdStrike shares more attractive is that their operating efficiency may sustain their impeccable year-to-date rallies.
Image Source: Zacks Investment Research
Robust Q4 Growth
On Wednesday, Abercrombie & Fitch flexed its ability to capitalize on the holiday shopping season stating its Q4 net income came in at $158.4 million (Non-GAAP) and more than 300% above the $38.33 million the company brought in a year ago.
This translated into earnings of $2.97 per share which topped the Zacks Consensus by 5% and skyrocketed from $0.81 a share in the comparative quarter. On the top line, Q4 sales of $1.45 billion beat estimates by 2% and spiked 21% year over year. Pricing power along with lower operating costs attributed to the impressive holiday profit and Abercrombie & Fitch has surpassed earnings expectations in each of its last four quarterly reports.
Image Source: Zacks Investment Research
As for CrowdStrike which reported its Q4 results on Tuesday, adoption of its endpoint cloud-delivered security services continues to accelerate. CrowdStrike achieved a fourth consecutive quarter of record net income at $236.2 million (Non-GAAP) which more than doubled from $111.6 million in the prior year quarter. Earnings of $0.95 per share soared 102% YoY and topped estimates by 16%. Quarterly sales expanded 34% to $845.34 million and beat by 1%. Furthermore, CrowdStrike has now beaten earnings expectations for 19 consecutive quarters.
Image Source: Zacks Investment Research
ANF & CRWD Price Performance is No Fluke
Abercrombie & Fitch and CrowdStrike’s strong price performance this year is not unordinary although the retail industry witnessed a slowdown amid high inflation and larger software titans such as Microsoft (MSFT - Free Report) ) are usually in the spotlight. That said, over the last five years ANF and CRWD have been two of the market’s top performers catapulting over +400% respectively to impressively outperform the broader indexes.
Image Source: Zacks Investment Research
In fact, Abercrombie & Fitch’s post-pandemic surge has seen the fashion apparel retailer rebound to new heights after refocusing its brands including Hollister and Gilly Hicks to fit trends among younger generations. Sustaining its eye-catching growth over the last few years will be a tall task but ANF shares trade at a reasonable 20.8X forward earnings multiple with EPS projected to rise 3% in its current fiscal 2025 to $6.48 per share. Plus, Abercrombie & Fitch has continued to progress towards its target of bringing in $5 billion in annual sales.
Image Source: Zacks Investment Research
In the midst of its expansion, CrowdStrike’s execution and focus on profitability have remained compelling since going public in 2019. Annual earnings are expected to jump 18% in CrowdStrike’s current FY25 and leap another 24% in FY26 to $4.53 per share. Accompanied by high double-digit percent growth on its top line, CrowdStrike’s operating and free cash flow has been reassuring as well after reaching record levels regarding this mark during Q4.
Image Source: Zacks Investment Research
Bottom Line
Investing in Abercrombie & Fitch and CrowdStrike has continued to be rewarding thanks to their focus on improvements in operating effeciency while maintaing thier growth. At the moment Abercrombie & Fitch and CrowdStrike’s stock both sport a Zacks Rank #2 (Buy).