Stocks continue to rise and fall based on the earnings reports of the companies behind the securities. It makes for a dramatic time in the market with lots of overreactions occurring both good and bad. For many companies, their earnings report for the final quarter of last year is proving to be a redemption story. For others, it continues a string of outperformance that analysts and investors have come to expect. Investors who take a position in a company that has just crushed its earnings print and whose share price is going parabolic can benefit from short-term profits or long-term gains. Here are three stocks to buy hand over fist after they posted blowout earnings.
Lyft (LYFT)
Shares of Lyft (NASDAQ:LYFT) rose 34% in a day after the ride-hailing and delivery company reported better-than-expected financial results for the fourth quarter of 2023. Investors are cheering news that Lyft swung from a $416.5 million loss a year earlier to a profit of $222.4 million in the final quarter of last year. Lyft’s stock initially rose more than 60% on news of the earnings release due to an accounting error by the company. While the share price moderated after the company’s clarification, it’s still up big.
For Q4, Lyft reported earnings per share (EPS) of 18 cents, which was more than double the profit of 8 cents expected on Wall Street. Revenue in the period totaled $1.22 billion, matching analysts’ expectations. Lyft also provided bullish forward guidance, saying that it expects gross bookings for the current first quarter of 2024 will be $3.5 billion to $3.6 billion, topping estimates of $3.46 billion. With the big post-earnings move, LYFT stock is now up 50% in the last 12 months.
Chipotle Mexican Grill (CMG)
Chipotle Mexican Grill’s (NYSE:CMG) stock has been on an upswing ever since the company issued strong fourth-quarter financial results. CMG stock is up 16% on the year, bringing its 12-month increase to 58%. The quick service restaurant chain that specializes in Mexican cuisine reported EPS of $10.36 compared to $9.75 that was forecast by analysts. Revenue came in at $2.52 billion versus $2.49 billion that was expected. Sales were up 15% from a year earlier.
Chipotle’s same-store sales increased 8.4%, which was ahead of estimates of 7.1%. Foot traffic at the company’s restaurants rose 7.4% in the quarter. Chipotle opened 121 new restaurant locations during Q4, and announced plans to open an additional 285 to 315 locations this year. As for guidance, the company forecast full-year 2024 same-store sales growth in the mid-single-digit range. CMG stock has now gained nearly 330% in the past five years, making it one of the stocks to buy for long-term gains.
Barrick Gold (GOLD)
With gold price hovering near an all-time high, it should come as no surprise that miner Barrick Gold (NYSE:GOLD) is currently among stocks to buy. GOLD reported strong Q4 2023 financial results. The company managed to triple its profits and double its net income from a year earlier during the quarter. Barrick reported EPS of 27 cents for Q4 2023, beating analyst forecasts of 21 cents. Revenue of $3.06 billion slightly missed expectations of $3.14 billion. Buoyed by the strong profits, Barrick announced a new $1 billion stock buyback program.
The company’s total gold production last year rose 1.4% to 1.05 million ounces while the average realized price per ounce increased 3% to $1,986 in Q4. In terms of guidance, Barrick said that it anticipates higher gold production this year as prices for the precious metal near record levels. Management said that they expect gold production to range between 3.9 million ounces and 4.3 million ounces this year. That compares with 4.05 million ounces in 2023.
Gold is currently trading right around $2,000 per ounce, which is not far from its all-time high of $2,135.39 an ounce. GOLD stock has declined 21% in the last 12 months, but looks to rebound after the strong Q4 print.
On the date of publication, Joel Baglole 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.
