Investing

3 Intriguing Stocks to Buy After Earnings

Shaun Pruitt

Published: August 9, 2023 6:55 am

Last Updated: August 9, 2023 11:59 am

There appears to be opportunity in several top-rated stocks after reporting their quarterly results on Monday.

Notably, The Manitowoc Company MTW, Chegg CHGG, and ShockWave Medical SWAV are three stocks that investors may want to consider after earnings.

With that being said, let’s see why now may be an ideal time to buy following their Q2 reports.

Manitowoc Q2 Results: Right away, Manitowoc’s attractive stock price may stick out to investors at $17 a share and the manufacturing company was able to easily surpass Q2 earnings expectations.

Manitowoc’s stock currently covets a Zacks Rank #1 (Strong Buy) and its Manufacturing-Construction Mining Industry is in Zacks top 1% of over 250 industries. As a leading provider of engineered lifting solutions, Manitowoc blasted Q2 EPS estimates of $0.25 a share by 200% with earnings coming in at $0.75 per share. More impressive, earnings skyrocketed 257% from the prior-year quarter.

On the top line, Q2 sales of $602.80 million beat expectations by 18% and climbed 21% YoY. Investors may want to get in on Manitowoc’s growth story before the bandwagon grows with annual earnings now expected to rise 5% in fiscal 2023 and climb another 21% in FY24 at $1.36 per share.

Chegg Q2 Results: Optimism is growing and investor sentiment is starting to be repaired following Chegg’s Q2 report. Chegg’s stock price may also be more intriguing to investors at around $10 a share and still roughly 65% from its 52-week highs.

Chegg stock currently sports a Zacks Rank #2 (Buy) and the case that shares were oversold is starting to build. To that point, Chegg’s Q2 earnings of $0.28 per share met expectations and sales of $182.85 million reassuringly topped estimates by 4%.

This was despite Chegg’s top and bottom lines dipping -6% and -24% from a year ago. Still, Chegg says its AI learning-assistance tools are starting to receive very positive feedback. More importantly, Chegg stock appears to have more than priced in annual earnings being projected to decline -19% this year and FY24 earnings are expected to rebound and rise 11% at $1.17 per share.

ShockWave Q2 Results: Investors and traders looking for a buy-the-dip candidate may have the opportunity in ShockWave Medical’s stock which currently has a Zacks Rank #2 (Buy).

ShockWave is a medical device company that specializes in products for the treatment of cardiovascular disease. While ShockWave’s growth and road to profitability have been very intriguing the company came up short on its bottom-line expectations for Q2 causing SWAV shares to sink more than -10% today.

However, there is the argument for an overreaction in the market as Q2 earnings of $0.76 per share still rose 12% YoY despite missing EPS estimates of $0.87 by -12%. Furthermore, sales of $180.17 million beat expectations by 4% and soared 49% from a year ago. After a record year that saw EPS at $5.70 in 2022, ShockWave’s annual earnings are now forecasted to drop -29% this year but rebound and jump 25% in FY24 at $5.01 per share.

Takeaway

With various scenarios, these top-rated stocks are appealing after reporting their Q2 results on Monday. There is certainly reason to believe that Manitowoc, Chegg, and ShockWave Medical stock could have more upside as we progress through 2023 and that they will be viable long-term investments as well.
The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report

Chegg, Inc. (CHGG): Free Stock Analysis Report

ShockWave Medical, Inc. (SWAV): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

This article originally appeared on Zacks