It’s always tricky trying to figure out the best way to position ahead of a company’s earnings report, as these binary events can lead to big moves both up and down for the price of a stock. While it might be tempting to add shares ahead of a release, waiting until after a company reports its numbers before initiating a new stock position is probably the smarter approach. That way, you have time to see how the market reacts to the report and can avoid putting your hard-earned capital at risk of a potentially sharp move to the downside.
We’ve seen several earnings winners gap up following their reports and hold onto the gains, which likely means that higher prices are coming in the sessions ahead. A few standout names have the potential to trend higher going forward, which is why we’ve prepared the following list of 3 earnings winners to buy now. Let’s take a deeper look at them below.
1. MongoDB
First up is MongoDB (NASDAQ:MDB), a company that has developed a unique database platform that enables developers to build and modernize applications across a range of use cases on the cloud, on-premise, or in a hybrid environment.
We know that so many companies are looking to modernize their operations and move their data onto the cloud, which directly benefits MongoDB since the company’s document-oriented database helps developers meet the new technological demands of today's business world. Working with large sets of distributed data is increasingly complex, which is why a tool that can effectively manage all of this information like MongoDB is so valuable.
The company delivered fantastic Q2 earnings results that sent the stock soaring to new all-time highs, and there is a good chance the rally has only just begun. With Q2 revenue of $199 million, up 44% year-over-year, and strong growth in subscription sales, it’s clear that this company is executing at a high level and taking full advantage of the needs of enterprises going through digital transformations.
MongoDB also boosted its full-year guidance and reported that total downloads of its database surpassed 200 million during the quarter, which adds to the narrative that this is one of the best growth stories in IT services at the moment.
2. Asana
Any company that produces tools that enable remote work and improve productivity within enterprises is worth a look, which means that Asana (NYSE:ASAN) should certainly be on your radar.
The company’s platform helps teams to work together more efficiently by enabling individuals to manage and prioritize tasks across each one of their projects. The solution also helps team leads manage work across multiple projects or processes and provides a way for executives to communicate across the company and gain real-time insights into how projects are progressing.
Asana has already been a massive winner in 2021 and continues to deliver strong top-line growth, which is exactly what investors want to see. In the company’s most recent Q2 report, Asana earned $89.5 million in revenue, up 72% year-over-year, and saw solid enterprise customer growth, with the number of customers spending over $50,000 up 111% year-over-year.
Although Asana is still working towards profitability, the fact that the company raised its full-year fiscal guidance and is edging close to the $100 per share mark should give investors the confidence to consider adding shares.
3. Lowe’s Companies
If high-flying growth stocks aren’t really your cup of tea, Lowe’s Companies (NYSE:LOW) is another strong earnings winner to consider adding now. The stock has been consolidating nicely after a big move up following the company’s Q2 earnings release and could be heading to new all-time highs in the coming weeks.
As the world’s second-largest home improvement retailer, Lowe’s has been benefitting from the trend of consumers spending big on their homes. With a strong housing market and people spending more time at home than ever before following the pandemic, there are plenty of positive factors working in this company’s favor at this time.
Lowe’s beat the consensus EPS estimates in Q2 with a 14% year-over-year increase to $4.25 per share and reported a 21% year-over-year increase in its pro business revenue, which is a good sign that construction and maintenance activity is picking up among the company’s professional customers again.
There’s also a lot to like about the company’s investment in its digital sales channel, and the company’s CEO Marvin Ellison is one of the best in the business. With a long history of share repurchase programs and dividend payouts, a housing market showing no signs of slowing down, and an upbeat forward guidance forecast, Lowe’s is a fantastic stock to consider adding right now.