As we proceed through the earnings season, some companies are truly commanding the spotlight after delivering impressive earnings that far exceeded expectations.
Representing various sectors, here are three companies that investors should consider purchasing stocks in, following their outstanding quarterly performances last week.
AZZ Inc. (AZZ)
Notably, the Zacks Manufacturing-Electronics Industry is currently in the top 6% of over 250 Zacks industries, and AZZ Inc. is thriving as a provider of metal coating services and welding solutions. AZZ reported its fiscal third-quarter results last Tuesday, boasting Q3 EPS of $1.19, which exceeded expectations of $0.99 per share by 20%.
Third-quarter earnings also skyrocketed by 35% from $0.88 per share in the preceding year’s quarter. AZZ’s annual earnings are now expected to surge by 20% this year and increase by another 10% in FY25 to $4.60 per share. Moreover, despite a remarkable 36% rally in the last year, AZZ’s stock still trades at a reasonable 13.8X forward earnings multiple.
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SMART Global Holdings, Inc. (SGH)
SMART Global is an electronics manufacturer worthy of consideration for investors after surpassing fiscal first-quarter earnings expectations by 50% last Tuesday. Despite a decline from $0.79 per share a year ago, Q1 earnings amounted to $0.24 per share, compared to estimates of $0.16 per share.
Furthermore, with its extensive reach as a supplier of electronic subsystems to Original Equipment Manufacturers (OEMs), SMART Global’s growth prospects remain promising, despite a challenging year, showing annual EPS at $2.52 per share in FY23. Although fiscal 2024 earnings are expected to dip to $1.26 per share, SMART Global’s stock trades at a reasonable 17X forward earnings multiple. Additionally, FY25 earnings are projected to rebound and surge by 68% to $2.12 per share. SMART Global’s stock, which has climbed an impressive 28% over the last year, has outperformed earnings expectations in three of its past four quarterly reports, delivering an average earnings surprise of 29.86%.
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WD-40 Company (WDFC)
Finally, WD40, an iconic consumer products company offering multi-purpose maintenance sprays and liquid form solutions used as degreasers, lubricants, and rust removers, posted stellar fiscal first-quarter earnings of $1.28 per share last Tuesday, surpassing the Zacks Consensus of $1.00 per share by 28%. First-quarter earnings also soared by 25% from $1.02 per share in the comparative quarter.
WD40’s stock has surged by a notable 58% over the last year, as the company’s growth trajectory and profitability continue to accelerate, with anticipated annual earnings rising by 6% this year and an additional 14% in FY25 to $5.86 per share.
Image Source: Zacks Investment Research
Conclusion
Now appears to be an opportune time to consider investing in the stocks of AZZ, SMART Global, and WD40, following their remarkable outperformance in quarterly earnings last week. Their robust price performances over the past year are likely to persist, signifying that these companies are shaping up to be sound investments for 2024 and beyond.
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AZZ Inc. (AZZ) : Free Stock Analysis Report
WD-40 Company (WDFC) : Free Stock Analysis Report
SMART Global Holdings, Inc. (SGH) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
