Zacks.com featured highlights Intapp, Okta, Deckers Outdoor and Chewy
For Immediate Release
Chicago, IL – September 13, 2024 – Stocks in this week’s article are Intapp INTA, Okta OKTA, Deckers Outdoor DECK and Chewy CHWY.
Play Likely Earnings Beats with 4 Top-Ranked Stocks
It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature.
In this regard, we ran a screener that yielded Intapp, Okta, Deckers Outdoor and Chewy as the likely winners on an earnings beat potential.
Why Is a Positive Earnings Surprise So Important?
Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though it apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend.
Also, seasonal fluctuations come into play sometimes. If a company’s Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company.
On the other hand, after much brainstorming and analysis of companies’ financials and initiatives, Wall Street analysts project earnings of companies. They in fact club their insights and a company’s guidance when deriving an earnings estimate.
Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher.
How to Find Stocks That Can Beat?
Now, finding stocks that have the potential to beat on the bottom line may be investors’ dream but not an easy job. One way to do this is to look at the earnings surprise history of the company.
An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earning beat in its next release.
Here are four out of seven stocks:
Intapp: The Zacks Rank #2 company is a provider of industry-specific, cloud-based software solutions that enable connected professional and financial services firms. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise of INTA for the past four quarters is 77.08%.
Okta: The Zacks Rank #2 company is a provider of identity for the enterprise. The company's products consist of Okta information technology Products and Okta for Developers.
The average earnings surprise of OKTA for the past four quarters is 27.15%.
Deckers Outdoor: The Zacks Rank #2 company is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities.
The average earnings surprise of DECK for the past four quarters is 47.16%.
Chewy: Chewy Inc. operates as an online pet retailer. The company offers pet products that include dry and wet food, toys, mats, biscuits, vitamins and supplements.The stock has a Zacks Rank #2.
The average earnings surprise of CHWY for the past four quarters is 50.85%.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2335037/play-likely-earnings-beat-with-4-top-ranked-stocks
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Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Okta, Inc. (OKTA) : Free Stock Analysis Report
Chewy (CHWY) : Free Stock Analysis Report
Intapp, Inc. (INTA) : Free Stock Analysis Report