We’re reaching the end of third quarter earnings season but there are still another 230 companies set to report earnings this week.
Many are specialty retailers who are in the midst of one of the most challenging holiday seasons in recent memory.
Others are high flying “pandemic stocks” including some work-from-home technology companies. Can they continue with their rallies into 2021 when it seems likely a vaccine will be rolling out allowing the global economy to get back to “normal”?
All five of these companies have excellent earnings surprise track records, with few misses over the last 5 years.
In addition, they are all up on the year, including three up over 200%.
Will they be able to keep their momentum?
This Week’s 5 Top Earnings Charts
1.
Salesforce.com
CRM
has a great earnings surprise track record. It hasn’t missed since Zacks records began in 2017. It is coming off a big beat last quarter. Shares have jumped 47% year-to-date but have been treading water lately as they wait for a catalyst. Will the earnings bring it?
2.
At Home Group
HOME
operates 200 home décor superstores in 40 states. It has beat 3 out of the last 4 quarters. Shares have soared 239% year-to-date as it’s in the red-hot home products category. With shares trading at just 9.5x forward earnings, is there more upside to come?
3.
CrowdStrike Holdings
CRWD
hasn’t missed since its 2019 IPO. It’s been one of the hot stocks of 2020 with shares jumping 200% year-to-date to new all-time highs. It trades with a forward P/E of 96, but do growth investors care about valuation anymore?
4.
DocuSign
DOCU
has only missed once since its 2018 IPO. Impressive. Shares have soared 201% in 2020 but have been treading water in recent weeks waiting for a catalyst. With a forward P/E of 412, is it priced for perfection?
5.
Ulta Beauty
ULTA
has beat 3 out of the last 4 quarters. Shares are up 9.4% year-to-date as they have rallied in the past month. But with work-from-home hitting makeup sales, will skincare and hair care be enough to boost the quarter?
[In full disclosure, Tracey owns shares of ULTA in her personal portfolio.]
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