Earnings Superstars: 3 Stocks Primed to Outperform This Quarter


  • As the Q1 earnings season ends, several companies across various sectors are making headlines amid upcoming earnings reports.
  • Nvidia (NVDA): With high expectations surrounding its revenue growth and guidance, NVDA is projected to rise.
  • Apogee Therapeutics (APGE): Fueled by positive data on its investigational candidates for COPD and AD, APGE positioned itself for future growth.
  • JD.com (JD): It has a history of beating analyst estimates and maintaining a solid position as an earnings outperformer.

Companies have generally managed to perform well against the consensus of earnings forecasts, with around 77% of S&P 500 firms reporting in Q1 considered earnings outperformers. That rate is higher than the normal rate of around 74% recorded in the first three months of a year, with earnings outperformers beating historical trends.

The main theme of this quarter’s earnings reports has been artificial intelligence, with companies reporting soaring spending on the technology. Not surprisingly, AI-based and adjacent stocks have been the star earnings outperformers.

With about 80% of the major names having reported so far, some big companies that are still likely to move the market have yet to update investors on their Q1 financials. Even though the number of firms reporting earnings is declining as the season comes to an unofficial end, there are still some potential earnings outperformers left to deliver strong results despite an already solid market.


Nvidia (NVDA) company logo displayed on mobile phone screen
Source: Piotr Swat / Shutterstock.com

With AI taking center stage during this earnings season, the top performer in the space has yet to report. Nvidia (NASDAQ:NVDA), a consistent AI earnings outperformer, is set to report its earnings on May 22 amid high expectations about whether its meteoric rise continues and what guidance it will provide.

Other AI companies have provided positive commentary, with Meta Platforms (NASDAQ:META) significantly increasing its orders of Nvidia’s H100 chips that power AI workloads. Tesla (NASDAQ:TSLA) is also looking to nearly double its use of H100 chips in 2024 as it works to roll out full self-driving cars.

Analyst consensus forecasts Nvidia’s revenue growth will slow down from last year’s explosive pace but remain celestial, with EPS projected to rise 34% to $7.64.

However, Nvidia has a proven track record of handily beating estimates since the AI boom, followed by a rally in its share price. Will the company deliver over $0.50 in earnings upside for the fourth consecutive quarter and turn Nvidia into another earnings outperformer?​

Apogee Therapeutics (APGE)

pharmaceutical industry. Production line machine conveyor with glass bottles ampoules at factory
Source: Dmitry Kalinovsky / Shutterstock.com

Relatively small pharmaceutical company Apogee Therapeutics (NASDAQ:APGE) saw its stock jump over 95% after it was one of the earnings outperformers in its most recent release. Its earnings came with positive data on the progress of one of its two investigational candidates for chronic obstructive pulmonary disease and Atopic Dermatitis.

The AD candidate completed positive Phase 1 trials just before the earnings report. The company took advantage of the post-earnings stock surge to sell $420 million worth of shares, though the stock price has retreated slightly since.

While the company hasn’t scheduled its next earnings date yet, it historically reports in early June. Investors will then get more details of the company’s financials and pipeline, including an increased cash position of approximately double its $399.5 million cash on hand last time it reported following the share issuance.

This provides a fairly comfortable runway to complete ongoing clinical trials as the company works to establish itself as a potential earnings outperformer in the biopharma industry.

JD.com (JD)

JD.com is a Chinese e-commerce company. Smartphone with JD.com logo on the screen, shopping cart and laptop. JD stock
Source: Sergei Elagin / Shutterstock.com

As investors worried about China’s economic recovery earlier this year, Chinese tech firm JD.com (NASDAQ:JD) and other Chinese stocks saw their share price plummet.

However, China’s Q1 GDP growth exceeded expectations, and Chinese tech stocks have rebounded, with some still making a recovery. JD.com currently trades at a relatively low price-to-earnings P/E ratio of 15.15, showing a notable gap from its American equivalent, Amazon (NASDAQ:AMZN), which has a P/E ratio of 52.

JD.com is scheduled to report Q1 earnings on May 16. Analysts estimate forecast earnings of $0.65 per share, slightly below the $0.66 reported in the previous year.

However, JD.com has a solid track record of beating analyst estimates and being an earnings outperformer. Given it topped analysts’ EPS estimate of $4.51 per share by 17% at $5.30 in March for the fiscal year 2023, recording a straight 10-year beat, and an attractive valuation, JD.com remains well-positioned as an earnings outperformer for investors.

On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.

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