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3 Stocks to Buy Following Blowout Quarterly Results
The 2024 Q4 earnings cycle continues to roll along, with a decent chunk of the S&P 500 already delivering quarterly results.
The next few weeks will continue to remain busy concerning the reporting docket, with NVIDIA’s looming release later in the month essentially capping off the period.
But so far, there have been several notable reports coming from companies, a list that includes AI-favorite Palantir (PLTR - Free Report) , Starbucks (SBUX - Free Report) , and Royal Caribbean (RCL - Free Report) .
All three posted strong results and saw share momentum post-earnings, reflecting the positivity. Let’s take a closer look at each for those interested in momentum.
Palantir Again Posts Robust Results
Palantir’s results came in strong yet again, exceeding headline expectations and posting serious growth. Sales of $828 million shot 36% year-over-year and, more impressively, 14% sequentially. The strong sales growth was headlined by a 43% move higher in Customer count, reflecting the snowballing demand the company has been witnessing.
Palantir also closed a record-setting $803 million of U.S. commercial total contract value (TCV), which shot 130% higher year-over-year and 170% sequentially. U.S. results were jam-packed with positivity, with Commercial and Government revenue growing by 64% and 45%, respectively.
Continued robust results have led shares to an outstanding 380% gain over the last year, crushing the S&P 500. Given the consistently robust demand, it’s reasonable to expect further share momentum, with the stock also sporting a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
“Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution. Our early insights surrounding the commoditization of large language models have evolved from theory to fact,” said CEO and co-founder Alexander Karp.
Starbucks CEO Swap Ignites Positivity
Starbucks shares were stuck in a downward/sideways trend for the better part of the past two years before news of a CEO change last August brought some much-needed positivity.
Former Chipotle Mexican Grill CEO Brian Niccol replaced Laxman Narasimhan. Since the news broke, SBUX shares have gained 18% compared to a 13% gain from the S&P 500. Shares faced harsh selling pressure throughout last December, though the recent set of quarterly results re-ignited positivity.
Image Source: Zacks Investment Research
Overall sales were flat year-over-year in the latest period, whereas comparable store sales fell 4% year-over-year. While the results are seemingly negative, the 4% drop in comparable store sales actually came in modestly above expectations, exceeding our -5.1% consensus estimate.
As shown below, it was the first positive surprise on the metric in years, undoubtedly a positive. For added context, SBUX reported a -7% decline on the metric in the release prior vs. views for -6.3%.
Image Source: Zacks Investment Research
“While we’re only one quarter into our turnaround, we’re moving quickly to act on the 'Back to Starbucks' efforts and we’ve seen a positive response,” said Brian Niccol, CEO.
Royal Caribbean Sees Record Bookings
Royal Caribbean’s results were underpinned by continued strength in consumer demand, a trend we’ve been well accustomed to over several periods, even with the airliners.
Concerning headline figures in the release, adjusted EPS of $1.63 exceeded the company’s prior guidance, whereas sales of $3.8 billion grew 11% year-over-year. RCL’s sales growth has been stellar post-pandemic, as we can see in the annual chart below.
Image Source: Zacks Investment Research
The company provided positive guidance for its FY25, with WAVE season bookings off to a record start. Analysts have already dialed their earnings estimates higher following the favorable print, landing the stock into a bullish Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Shares have been on a tear over the last year, gaining 130% on the back of strong quarterly releases. The company’s favorable earnings outlook alludes to further share momentum in the near-term.
Bottom Line
We continue to wade through the 2024 Q4 cycle, with a wide variety of companies already delivering quarterly results.
And throughout the period, three companies, namely Palantir (PLTR - Free Report) , Royal Caribbean (RCL - Free Report) , and Starbucks (SBUX - Free Report) , have stolen the spotlight, with each posting robust quarterly results and seeing positive share momentum post-earnings.
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3 Stocks to Buy Following Blowout Quarterly Results
The 2024 Q4 earnings cycle continues to roll along, with a decent chunk of the S&P 500 already delivering quarterly results.
The next few weeks will continue to remain busy concerning the reporting docket, with NVIDIA’s looming release later in the month essentially capping off the period.
But so far, there have been several notable reports coming from companies, a list that includes AI-favorite Palantir (PLTR - Free Report) , Starbucks (SBUX - Free Report) , and Royal Caribbean (RCL - Free Report) .
All three posted strong results and saw share momentum post-earnings, reflecting the positivity. Let’s take a closer look at each for those interested in momentum.
Palantir Again Posts Robust Results
Palantir’s results came in strong yet again, exceeding headline expectations and posting serious growth. Sales of $828 million shot 36% year-over-year and, more impressively, 14% sequentially. The strong sales growth was headlined by a 43% move higher in Customer count, reflecting the snowballing demand the company has been witnessing.
Palantir also closed a record-setting $803 million of U.S. commercial total contract value (TCV), which shot 130% higher year-over-year and 170% sequentially. U.S. results were jam-packed with positivity, with Commercial and Government revenue growing by 64% and 45%, respectively.
Continued robust results have led shares to an outstanding 380% gain over the last year, crushing the S&P 500. Given the consistently robust demand, it’s reasonable to expect further share momentum, with the stock also sporting a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
“Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution. Our early insights surrounding the commoditization of large language models have evolved from theory to fact,” said CEO and co-founder Alexander Karp.
Starbucks CEO Swap Ignites Positivity
Starbucks shares were stuck in a downward/sideways trend for the better part of the past two years before news of a CEO change last August brought some much-needed positivity.
Former Chipotle Mexican Grill CEO Brian Niccol replaced Laxman Narasimhan. Since the news broke, SBUX shares have gained 18% compared to a 13% gain from the S&P 500. Shares faced harsh selling pressure throughout last December, though the recent set of quarterly results re-ignited positivity.
Image Source: Zacks Investment Research
Overall sales were flat year-over-year in the latest period, whereas comparable store sales fell 4% year-over-year. While the results are seemingly negative, the 4% drop in comparable store sales actually came in modestly above expectations, exceeding our -5.1% consensus estimate.
As shown below, it was the first positive surprise on the metric in years, undoubtedly a positive. For added context, SBUX reported a -7% decline on the metric in the release prior vs. views for -6.3%.
Image Source: Zacks Investment Research
“While we’re only one quarter into our turnaround, we’re moving quickly to act on the 'Back to Starbucks' efforts and we’ve seen a positive response,” said Brian Niccol, CEO.
Royal Caribbean Sees Record Bookings
Royal Caribbean’s results were underpinned by continued strength in consumer demand, a trend we’ve been well accustomed to over several periods, even with the airliners.
Concerning headline figures in the release, adjusted EPS of $1.63 exceeded the company’s prior guidance, whereas sales of $3.8 billion grew 11% year-over-year. RCL’s sales growth has been stellar post-pandemic, as we can see in the annual chart below.
Image Source: Zacks Investment Research
The company provided positive guidance for its FY25, with WAVE season bookings off to a record start. Analysts have already dialed their earnings estimates higher following the favorable print, landing the stock into a bullish Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Shares have been on a tear over the last year, gaining 130% on the back of strong quarterly releases. The company’s favorable earnings outlook alludes to further share momentum in the near-term.
Bottom Line
We continue to wade through the 2024 Q4 cycle, with a wide variety of companies already delivering quarterly results.
And throughout the period, three companies, namely Palantir (PLTR - Free Report) , Royal Caribbean (RCL - Free Report) , and Starbucks (SBUX - Free Report) , have stolen the spotlight, with each posting robust quarterly results and seeing positive share momentum post-earnings.