August Winners: 5 Stocks That Buoyed Up On Q2 Earnings Beat

The second-quarter earnings season about to wrap up with results for most of the S&P 500 companies on board. Earnings have come in lower than the prior-year quarter. However, most of the companies have managed to beat on earnings partially attributed to lower estimates on account of a dull economic view. While results have lacked luster in general, some stocks have surged on the bourses over the past few weeks on commendable second-quarter performance. Such stocks are intriguing, especially in the prevailing market uncertainty.

Economic Outlook

The Fed’s decision on rate hike has dominated the markets for a while now. The recent Jackson Hole meeting gave a positive indication on rate hike, with Fed Chair Janet Yellen reaffirming expectations of a liftoff. However, some market analysts still believe that the Fed will continue delaying its rate hike.

Across the world, economies are still giving mixed signs. Canada’s growth faltered in the past few months but some analysts expect the economy to rebound in the third quarter. Moving south, Venezuela is struggling with oil price related woes and Brazil is reeling under political uncertainly with Dilma Rousseff being removed from the President’s post by the senate. In emerging markets, India saw GDP growth for the April-to-June quarter touch the lowest level in the past 15 months while China, despite prevailing concerns over its growth, might be headed toward an economic rebound and meet the GDP growth target set by its government.

Stock Picks

There is a general expectation that third-quarter results will be better this year. However, while companies work toward improving their financials, here we have picked five players that beat second-quarter estimates in Aug 2016, and saw a surge in their stock price. Moreover, these stocks have a favorable Zacks Rank #1 (Strong Buy) or #2 (Buy). Going by the impressive run that these stocks saw in August, we are hopeful of their future growth. The list is as follows:

IntraLinks Holdings Inc. ( (NYSE:IL) )based out of New York is a provider of Software-as-a-Service solutions globally. The company posted an earnings beat of over 100% in the second quarter and its stock has surged around 38% since its release. The company carries a Zacks Rank #2 and a VGM Score B (a VGM score of A or B are considered good for growth).

Fifth Street Asset Management Inc. (NASDAQ:FSAM) )headquartered in Greenwich, CT is an alternate asset management company. The company beat earnings estimates by 66.67% in the second quarter and its stock price has risen around 25% since then. Fifth Street has a Zacks Rank #2 and a VGM Score B. The company also has an attractive PE ratio of 8.21 compared with the industry PE of 11.60.

Willdan Group, Inc. (NASDAQ:WLDN) )based out Anaheim, CA provides consulting, professional and technical services to public agencies. The company posted an earnings beat of 60.87% in the second quarter and its stock price has appreciated 25% since then. The company has a Zacks Rank #2 and VGM Score A.

NetApp Inc. (NASDAQ:NTAP) ) headquartered in Sunnyvale, CA is engaged in storage and data management services. The company’s second-quarter earnings beat estimates by 55.6% and its stock price has surged almost 20% since then. NetApp sports a Zacks Rank #1 and a VGM Score A.

NL Industries Inc. (NYSE:NL) ) set in Dallas, TX manufactures titanium dioxide pigments, chemical products used in paper, paints and plastics industry and rheological additives through its subsidiaries Kronos, Inc. and Rheox, Inc. The company beat earnings estimates in the second quarter by more than 100% and its stock price has soared almost 94% since then. The company flaunts a Zacks Rank #1.

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