Yahoo Finance Top 5 Nasdaq-Listed, Non-Tech Stocks Set to Beat on Q1 Earnings
Wall Street witnessed an impressive bull run for the past 15 months. The rally was led by growth stocks, especially, technology stocks. Consequently, the tech-heavy Nasdaq Composite Index took the lead role in enabling U.S. stock markets to resume their northward journey after a highly disappointing 2022.
Moreover, the ongoing tech rally was led by a massive thrust toward artificial intelligence (AI), especially generative AI. The rapid penetration of digital technologies and the Internet worldwide during the lockdown ushered in significant adoption of AI. As a result, the Nasdaq Composite advanced 9.1% in first-quarter 2024 after jumping 43.4% in 2023.
Aside from technology stocks, several stocks from non-technology sectors have also flourished year to date. Despite being a tech-laden index, the Nasdaq Composite also carries a diversified structure. Several stocks from non-technology sectors are included on the index.
A few Nasdaq Composite-listed stocks, with a favorable Zacks Rank, from these non-technology sectors are set to beat on first-quarter earnings results. Investment in these stocks is likely to be fruitful.
Our Top Picks
We have narrowed our search to five Nasdaq Composite-listed non-tech stocks that are poised to beat on first-quarter earnings results. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of our five picks in the last quarter.
Image Source: Zacks Investment Research
PACCAR Inc. PCAR is one of the leading names in the trucking business, with reputed brands like Kenworth, Peterbilt and DAF. PCAR achieved record revenues and net income in 2023. PCAR expects solid order intake in North America this year. Continued growth in aftermarket parts is another positive.
An expanding network of parts distribution centers, dealer locations and independent TRP stores, along with managed dealer inventory and innovative e-commerce systems, are aiding Parts’ unit. Accelerated efforts toward electrification, connected vehicle services and advanced driver-assistance system options are set to bolster PCAR’s prospects.
Zacks Rank #1 PACCAR has an Earnings ESP of +1.25%. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 60 days. PACCAR recorded earnings surprises in the last four reported quarters, with an average beat of 17.1%. The company is set to release earnings results on Apr 30, before the opening bell.
Coinbase Global Inc. COIN provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Zacks Rank #1 Coinbase Global has an Earnings ESP of +36.53%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 54.1% over the last 30 days.
Coinbase Global recorded earnings surprises in the last four reported quarters, with an average beat of 377.6%. The company is set to release earnings results on May 2, after the closing bell.
Robinhood Markets Inc. HOOD operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies using its Robinhood Crypto platform.
Zacks Rank #2 Robinhood Markets has an Earnings ESP of +25.93%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 26.1% over the last 30 days.
Robinhood Markets recorded earnings surprises in the last four reported quarters, with an average beat of 166.6%. The company is set to release earnings results on May 8, after the closing bell.
Wingstop Inc. WING franchises and operates restaurants. WING’s operating segment consists of the Franchise and Company segments. WING offers classic wings, boneless wings, and tenders that are cooked-to-order, and hand-sauced-and-tossed in various flavors.
Zacks Rank #2 Wingstop has an Earnings ESP of +4.60%. It has an expected earnings growth rate of 21.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days.
Wingstop recorded earnings surprises in the last four reported quarters, with an average beat of 21.3%. The company is set to release earnings results on May 1, before the opening bell.
The Carlyle Group Inc. CG has been benefiting from a decent assets-under-management (AUM) balance and efforts to diversify into new avenues. We expect fee-earning AUM and total AUM to increase 17.3% and 19.1%, respectively, in 2024. Revenue growth is also aided by CG’s efforts to expand its investment platforms. Given CG’s earnings strength, it is expected to continue with its capital distributions.
Zacks Rank #2 The Carlyle Group has an Earnings ESP of +0.66%. It has an expected earnings growth rate of 21.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last seven days.
The Carlyle Group recorded earnings surprises in three out of the last four reported quarters, with an average beat of 17%. The company is set to release earnings results on May 1, before the opening bell.
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PACCAR Inc. (PCAR) : Free Stock Analysis Report
Carlyle Group Inc. (CG) : Free Stock Analysis Report
Wingstop Inc. (WING) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report
