Unless you have owned a stock for a while ahead of the company’s earnings report, it’s usually smarter to wait until after the release before you initiate a new position. Many traders and investors are attracted to the possibility of cashing in big if a company delivers resoundingly positive results that catch the market off-guard. However, instead of putting your account in the hands of fate, why not wait until after an earnings release to determine if a company is deserving of your hard-earned capital? That way, you have time to do your homework and assess whether or not the business is heading in the right direction before adding shares.
As earnings season winds down, it’s always a good idea to note some of the winners that have been strong in the days following their reports. Several names stand out as strong stocks to buy post-earnings at this time, which is why we’ve put together a brief overview of 3 of them. Keep reading below to learn more.
1. Dick’s Sporting Goods
It didn’t make a lot of sense to add shares of this sporting goods retailer last year since all sports were essentially canceled as a result of the pandemic. However, given the strategic moves that Dick’s Sporting Goods (NYSE:DKS) made last year to ramp up its online sales channels, the fact that people are playing sports again, and how well the company performed in Q1, it’s absolutely a stock that is worth a look at this time. Dick’s is one of the largest omnichannel sporting goods retailers in the country and offers a variety of different sports equipment, apparel, footwear, and accessories in its 850 stores located in 47 states.
Sports are coming back in a big way as more people get vaccinated and head back into public settings, which is a solid reason to consider adding shares. It seems that business is already bouncing back, as Dick’s reported incredibly strong numbers in Q1 including net sales of $2.92 billion, representing a 119% year-over-year increase. The company’s management also provided some encouraging signs that Dick’s Sporting Goods is well-positioned to continue delivering strong results this year, as the company raised its full-year guidance.
2. Toll Brothers
While the homebuilders have already rallied hard in 2021, that doesn’t mean that there aren’t more gains in store for the leading companies in the industry. That includes Toll Brothers (NYSE:TOL), a company that is engaged in designing, building, marketing, selling, and arranging financing for detached and attached homes in luxury residential communities. The company has a strong presence in some of the hottest real estate areas in the country including coastal, mountain, and Sun Belt markets.
With pricing power thanks to the huge demand for new homes and an incredibly strong backlog, Toll Brothers is well-positioned to deliver nice returns for shareholders throughout the year. The company’s latest earnings results were impressive, as Toll Brothers reported Q2 record home sales revenues of $1.84 billion, up 21% year-over-year. The company also had a backlog value of $8.69 billion at the end of Q2, up 58% year-over-year. Finally, the fact that Toll Brothers boosted its quarterly cash dividend by 54.5% makes it a great stock to consider adding post-earnings.
3. Upstart Holdings
Last, we have Upstart Holdings (NASDAQ:UPST), a company that is disrupting the consumer financing industry with a cloud-based artificial intelligence lending platform. The platform is unique in that is designed to improve access to affordable credit while reducing the risk and costs of lending for banks. It’s one of the more intriguing growth stocks to consider adding right now, particularly since the company has delivered strong earnings in consecutive quarters.
Upstart recently announced its Q1 results that saw total revenue come in at $121 million, an increase of 90% year-over-year. The company also saw its transaction volume and conversion rate in Q1 increase substantially, which confirms that more consumers are looking for financing with the company. Finally, the company’s Q1 Adjusted EBITDA of $21 million was up 472% year-over-year and certainly an impressive figure for such a young company. While this is a high growth name that is subject to wild price swings, it’s one of the best stocks to consider buying post-earnings as it has a great chance of becoming a long-term winner.