Earnings season continues to roll on with hundreds of companies expected to report this week. How do you decide which reports to tune into?
I’ve gone through the earnings charts so you don’t have to. I pulled out 5 that are the most important reports to watch this week. They are in different industries but all will give clues as to what is going on in the U.S. economy, with labor shortages and inflationary pressures.
Several also have excellent earnings surprise track records. Will they be able to keep their records intact again this quarter?
This Week’s Most Important Earnings Charts
1. Airbnb, Inc. ABNB
Airbnb has beat on earnings 6 quarters in a row. It has only missed twice since its 2020 IPO and those were the first two quarters.
Shares of Airbnb plunged last year on the growth stock sell-off but it’s rallied 38% in 2023. Airbnb isn’t cheap. It trades with a forward P/E of 41.
Travel is still hot in 2023. Will Airbnb beat again this quarter?
2. Shopify Inc. SHOP
Shopify is coming off a big beat last quarter after 2 misses in a row. But it otherwise has a great 5-year earnings surprise track record.
Shares of Shopify plunged last year on the big growth stock sell-off but are up 40.7% in 2023’s rebound.
The Zacks Consensus is looking for 2023 earnings of just $0.04 per share. That’s a forward P/E of 1169.
Is Shopify still over valued?
3. Crocs, Inc. CROX
Crocs has an excellent earnings surprise record with just 2 misses in the last 5 years. The last miss was in 2020 when the pandemic hit. That’s impressive.
Shares of Crocs sold off to start 2022 and the stock got dirt cheap with a single digit P/E. But the shares have rallied over the last 6 months, adding 50% in that time. It now trades with a forward P/E of 10.8.
Shoe sales are usually strong during recessions. Should Crocs still be on your short list after the big rally?
4. Pool Corp. POOL
Pool Corp. has an amazing earnings surprise track record. It has only missed three times in the last 5 years but those misses were all the way back in 2018 and 2019. It didn’t miss at all during the pandemic. What a fantastic record.
Shares came down off their pandemic highs in 2022 but have rallied 22% in 2023. It’s not cheap, with a forward P/E of 22, but Pool Corp. does pay a dividend, yielding 1.1%.
Should investors consider adding Pool Corp. in 2023?
5. Shake Shack Inc. SHAK
Shake Shack has an excellent earnings surprise track record, with just one miss in the last 5 years. It was in 2020, when the pandemic began. But given the volatility over the last few years in the restaurant industry, it’s amazing Shake Shack has beat or met the estimate every other quarter.
Shares of Shake Shack have plunged over the last 2 years, falling 56% during that time. But it, too, has rallied to start 2023, gaining 35%.
Shake Shack doesn’t have a P/E as it’s expected to lose $0.36 per share in 2022 and lose $0.07 per share in 2023.
Will Shake Shack beat again this quarter?
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See Stocks NowPool Corporation (POOL) : Free Stock Analysis Report
Crocs, Inc. (CROX) : Free Stock Analysis Report
Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
