This is a big week for earnings with over 900 companies reporting including the rest of FAANG and many of the hot big cap stocks from drug makers, to restaurants, to retailers, and financials.
These 5 companies are among the hottest of the earnings charts this week.
Not only are the shares soaring, well outpacing the S&P 500 for the year, but several of them have excellent earnings track records too.
Will they keep this momentum after they report?
Or are they priced for perfection?
The 5 Most Explosive Earnings Charts This Week
1. Shopify SHOP hasn’t missed since Zacks data began in early 2017. That’s an impressive streak. Shares are up 133% year-to-date to new 5-year highs. But they now trade with a forward P/E of 1670. Is it the most overbought stock out there?
2. Spotify SPOT has beat 3 out of the last 4 quarters. Shares took off in 2020 after it signed high profile talent for its podcast platform including Joe Rogan, host of the top-rated podcast The Joe Rogan Experience. Shares are up 80% year-to-date but it’s still not profitable. Is this a hope and dream stock?
3. PayPal PYPL is coming off its first miss since 2017 last quarter. But investors didn’t care as the shares are up 59% year-to-date. It’s trading at 51x earnings. Can it keep the momentum?
4. MecardoLibre MELI has missed the last 3 quarters but shares are up 73% year-to-date to new 5-year highs as investors bet that this double threat of online retail and online payments in Central and South America, still has plenty of room to ride. But is it too hot to handle going into the report?
5. Wingstop WING has only missed twice in the last 5 years. It’s one of the big winners from the coronavirus shutdown as consumers have turned to food delivery from big, trusted, brands. Shares are up 59% year-to-date, however, and now trade with the sky-high P/E of 133. Is all the good news priced in?
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