As companies continue to release quarterly earnings reports, the markets have continued to soar to all-time highs, partially due to a rather strong earnings season from numerous public entities. For many stocks that have posted strong quarterly earnings reports, now might be the optimal time to invest as its share price could keep moving higher.
Our Zacks Rank relies on earnings estimates and revisions, as well as specific earnings results. In essence, earnings surprises possess the ability to add optimism to a security’s outlook and bolster its upcoming share price movement.
It is vital for investors to target stocks that continue to witness a rise in its share price following a strong earnings release, and positive share price momentum can continue over several days or even weeks. Fortunately, we can easily discover companies that demolished earnings estimates. Here are three Zacks Rank #1 (Strong Buy) stocks that recently destroyed earnings estimates.
1. Wintrust Financial Corporation (WTFC - Free Report)
Wintrust posted earnings of $1.11 per share, which defeated the Zacks Consensus Estimate of $0.99 per share. This report constituted a strong 12.12% EPS surprise for the company last quarter. Also, analysts adjusted the company’s full-year fiscal EPS estimates due to the positive performance on its most recent earnings report. Furthermore, Wintrust beat its sales estimate of $280 million by reporting revenues of $294 million, which signifies a 5.17% quarterly revenue surprise.
2. NVR, Inc. (NVR - Free Report)
NVR, Inc. beat the Zacks Consensus Estimate for earnings of $28.63 per share by posting earnings of $35.19 per share, which represents a 22.91% quarterly earnings surprise. Revenues of $1.513 billion actually came in just below our Zacks Consensus Estimate, but these results marked solid year-over-year growth of 11.1%.
NVR’s share price has risen by a modest 2.36% since its report date, partially due to its impressive earnings release. Plus, a healthy housing industry and strong demand trends in the markets served by NVR could continue to drive the stock’s performance.
3. Sony Corporation (SNE - Free Report)
Sony reported solid earnings of $0.56 per share, which defeated the Zacks Consensus Estimate of $0.48 per share, constituting a 16.67% surprise. Furthermore, Sony reported revenues of $16.59 billion, which is an increase from last year’s figure of $15.66 billion, or 6% year-over-year growth. Sony’s share price has gained an impressive 2.79% over the past week alone. Additionally, the company could continue to perform well as it operates in the Audio Video Production industry, which currently sits in the top 4% on the Zacks Industry Rank.
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