The IBD50 Post-Earnings Plays Worth Monitoring AVGO FIVE OKTA PANW
Three of our favorite IBD50 stocks are trading higher this morning. All three, AVGO, FIVE, and PANW reported better than expected earnings for the quarter. Two are from the cyber-security industry. One is from the retail sector and the other makes chips for iPhone.
AVGO – Broadcom Beats – iPhone
Broadcom earnings exceeded earnings estimates beating by 24%, posting a solid $4.98 a share. This surpassed analysts estimates by 16 cents. Revenue grew 13% to $5.06 billion, slightly below analyst estimates for the quarter.
Profit and sales were shy of expectation however, Broadcom shares higher this morning 4.5% in early trading.
The company also announced share repurchase plans and a quarterly dividend increase. The stock goes ex-dividend in 10 days, September 18.
AVGO Upgraded – Buy (BofA/Merrill).
Shares closed Thursday 2.5% lower (215.97), being rejected at the 50d resistance for the past two trading days.
Pre-market the stock is trading above the 50d at 225.55 or (+4.44%). Note support at VBP was tagged yesterday and met with buyers.
AVGO Broadcom Intrinsic Value = 272.00 per metrics calculated by simplywall.st using pre-earnings data. That makes the stock very attractive.
Considering earnings, sales, revenues and guidance, we will add to our position in the coming days.
Finally, we need to consider the Apple iPhone supplier has been struggling since late November. The aborted Qualcomm (QCOM) takeover bid and a rejected CA (CA) deal have been headwinds in the short-term.
Palo Alto Earnings
Palo Alto earnings rose 39% to $1.28 a share, sand bagging fourth-quarter views for 92 cents. Revenue popped markedly, registering nearly a 30% increase to $658.1 million.
PANW Raised to $275 at Oppenheimer
Palo Alto stock shot up 6.4% to 234.84 in early trading. Fresh 52 week highs means “no overhead supply.” The stock held above a 219.48 flat-base buy point, so we’ll look for early profit taking to glean a better entry level, should we decide to buy shares.
Okta reported a loss of 15 cents a share, pretty much inline with 2017 results. That said, it beat analysts estimates for (-0.19). Revenue surpassed expectations (+57%). Okta stock is trading (+14%) higher this morning 68.81.
In the regular session, Okta rose 0.5% to 60.20, nearly reclaiming a 61.10 buy point after tumbling 5.1% Wednesday in heavy volume.
The discount retailer, and a favorite IBD50 stock, reported better than expected earnings (+23%) nearly eclipsing $350 million. Same-store sales, an important metric in this AMZN driven market, rose 2.7%.
Five Below earnings crushed earnings by 50% adding 45 cents a share. The company also gave bullish guidance with improving outlook and full-year estimates.
Five Below (+12.54%) in early trading to 130.00.
These four stocks are worthy additions to our portfolio, if they meet our criteria for entries in the next few days.
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