HomeMost PopularInvesting Top-Rated Tech Stocks to Keep an...

Top-Rated Tech Stocks to Keep an Eye on Ahead of Earnings Report Top-Rated Tech Stocks to Keep an Eye on Ahead of Earnings Report

Actionable Trade Ideas

always free

This week, a number of highly ranked tech stocks are set to report their earnings, with several belonging to the Zacks Rank #1 (Strong Buy) list. These companies are expected to captivate investors as they unveil their fourth-quarter results on Tuesday, February 13. Here are three of these highly-ranked tech stocks that investors will want to keep an eye on:

Shopify (SHOP)

Shopify, a provider of essential internet infrastructure for commerce, has seen its market sentiment surge. The company’s shares have soared by 87% in the last year, signaling a promising growth trajectory. It is expected that Shopify’s products for commerce and an expanding merchant base will have driven its fourth-quarter sales up by 19% to $2.07 billion. Moreover, fourth-quarter earnings are projected to surge by 343% to $0.31 a share, compared to $0.07 a share in the comparable quarter. The company’s track record of consistently surpassing both top and bottom-line expectations over the past five quarters has contributed to its impressive rally in shares. If Shopify delivers strong fourth-quarter results and provides positive guidance, it could further fuel the remarkable rally in its shares.

Zacks Investment Research
Image Source: Zacks Investment Research

Zillow Group (ZG)

Zillow, another internet platform specializing in real estate and home-related brands, is also anticipated to share its fourth-quarter results and guidance. This will provide valuable insight into the broader outlook of the housing industry and the potential rebound in the company’s bottom line in fiscal 2024. Despite a forecasted decrease in fourth-quarter earnings to $0.12 a share from $0.21 a share in the prior-year quarter, sales are projected to be up by 3% to $450.75 million, signaling hope for Zillow amidst easing inflation and lower rates. With the busy home shopping season approaching as spring draws near, Zillow’s consistent outperformance in both top and bottom-line expectations over eight consecutive quarters, along with an impressive average earnings surprise of 104.49% in its last four quarterly reports, have contributed to a respectable 23% rise in its shares over the last year.

Zacks Investment Research
Image Source: Zacks Investment Research

Blackline (BL)

Finally, Blackline, a provider of cloud-based solutions for financial operations and key finance processes, is poised for intriguing growth opportunities. Despite a downturn of 14% in its shares over the last year, Blackline’s expected 10% increase in fourth-quarter sales to $154.24 million, along with an anticipated 57% rise in earnings to $0.55 a share from $0.35 per share a year ago, presents a compelling case. Blackline’s consistent trend of surpassing top line estimates for 30 consecutive quarters, along with beating earnings expectations in three of its last four quarterly reports, reinforces its position for expansion. Should the company reaffirm its anticipation of double-digit EPS and sales growth in fiscal 2024, it could lead to a resurgence in Blackline’s shares.

Zacks Investment Research
Image Source: Zacks Investment Research

Key Takeaway

As these intriguing tech stocks approach the end of FY23 and brace for their fiscal 2024, the upward revisions in earnings estimates are a positive sign. This suggests that Shopify, Zillow Group, and Blackline may offer encouraging guidance and present an opportune time for investors to consider acquiring their stocks.

Just Released: Zacks Top 10 Stocks for 2024

Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November 2023, the Zacks Top 10 Stocks gained +974.1%, nearly tripling the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.