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Buyers Swarmed These 3 Stocks Post-Earnings

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With earnings season slowly winding down, one thing is for certain – we saw many surprises. Of course, the period is always hectic, but this cycle was critically important as we wade through a somewhat-cloudy economic outlook.

Several companies, including Apple (AAPL - Free Report) , Uber Technologies (UBER - Free Report) , and Applied Materials (AMAT - Free Report) , all delivered results that had investors celebrating post-earnings.

Below is a chart illustrating the year-to-date performance of all three, with the S&P 500 blended in as a benchmark.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s take a closer look at how each currently stacks up.

Apple

Apple’s quarterly results were watched like a hawk, as it was the last of the mega-cap tech giants yet to report. Fortunately for the market, the company delivered, exceeding earnings expectations by nearly 6% and posting revenue 2% ahead of estimates.

Zacks Investment Research
Image Source: Zacks Investment Research

It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares recently witnessed the golden cross, as highlighted in the chart below. The golden cross occurs when the shorter 50-day moving average rises above the 200-day moving average, indicating near-term buying pressure. 

Zacks Investment Research
Image Source: Zacks Investment Research

Uber Technologies

Uber shares found plenty of attention following its latest release; the company posted a positive EPS surprise of 20% and reported revenue modestly above expectations.

Zacks Investment Research
Image Source: Zacks Investment Research

Uber shares could entice growth-focused investors, further reinforced by the Style Score of “A” for Value. The company’s earnings are forecasted to skyrocket 100% in its current fiscal year (FY23) and an additional 1,270% in FY24.

The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 17% in FY23 and 18% in FY24.

Applied Materials

Like the stocks above, buyers stepped up in a big way post-earnings for AMAT shares, with the company delivering a 9% EPS beat and reporting revenue nearly 4% ahead of expectations.

Zacks Investment Research
Image Source: Zacks Investment Research

It’s worth noting that the company’s growth is forecasted to taper off, with earnings forecasted to pull back 6% in its current fiscal year (FY23) and a further 7% in FY23. This is illustrated in the chart below.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

While earnings season is undeniably intense, it’s just the nature of the period. We managed to elude the so-called earnings ‘cliff’ many warned of, with many companies posting better-than-expected results and keeping sentiment in line.

And all three stocks above – Apple (AAPL - Free Report) , Uber Technologies (UBER - Free Report) , and Applied Materials (AMAT - Free Report) – delivered results that had the market impressed post-earnings.


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