Earnings season kicks off this week as many popular large-cap stocks are expected to report, including Alphabet, Apple and Amazon.
But this week it’s not just about technology. Other industries the report appears in include energy, restaurants, retailers, industrials, and a small number of home builders. Homebuilders have taken the streets by surprise this year with a surge, despite 2023 earnings forecasts being slashed as high mortgage rates dampen home buying.
5 hot stock
Many of the popular growth stocks are showing big gains in early 2023. These five strains are just a fraction of that.
Not only are they trading at or near their 52-week highs, but they all have a track record of excellent earnings surprises.
Will they hit again?
5 Profit Charts with 52 Week Highs
1. Meritage Homes (MTH – free report)
Meritage Homes is one of the top homebuilders in 2023. The stock is up 12% year-to-date and up 6% from last year.
Meritage Homes has an incredible track record of earnings. In the last five years he has only missed once, and that was in 2018. It was impressive during the pandemic.
The stock remains cheap, with a forward P/E of 8.8, but Meritage Homes earnings are expected to decline 54% in 2023.
Is Meritage Homes Overpurchased?
2. Ferrari NV (Race – free report)
Ferrari has outperformed earnings for the ninth consecutive quarter. He has only missed three times in the last five years.
Ferrari’s share price is up 17.3% year-to-date, up 9.2% last year.
But Ferraris aren’t cheap. It trades at a forward P/E of 43.
Is Street too bullish on Ferrari or is the uptick justified?
3. Elf Beauty Co., Ltd. (fairy – free report)
elf Beauty has been profitable for seven consecutive quarters and missed profit only once in early 2021 in the past five years.
elf Beauty’s stock price surged last year, up 106%. They broke his five-year high. However, this year’s share price has risen only 3.2% he.
elf Beauty is definitely not a value stock in 2023. Future P/E is 50.
Is elf beauty too hot to handle?
Four. Starbucks (SBUX – free report)
Starbucks has only missed two times in the last five years, and those were last year.
But despite last year’s disappointing performance, Starbucks stock hit a 52-week high heading into this report. Year-to-date, he’s up 9.3%, up 11.9% from last year, while the S&P 500 has fallen 8% over the same period.
Starbucks is no longer trading on a P/E basis as it trades at 32x.
China, the second largest market, has reopened, should Starbucks still be open?
Five. Deckers Outdoor Co., Ltd. (deck – free report)
Deckers has made an incredible profit over the past five years with just one mistake. It was 2021.
Deckers’ stock has skyrocketed over the past year, gaining 40% during that time. The stock is still up 5.3% in 2023 and continues to climb.
But Deckers doesn’t come cheap either. It trades at a futures P/E of 23.5. However, compared to some of the others in this group of five companies, these stocks seem pretty affordable.
Is Deckers still a buying opportunity?
[In full disclosure, Tracey owns shares of SBUX in her personal portfolio.]
