Wall Street has witnessed an impressive bull market over the past 15 months. Growth stocks, particularly tech stocks, led the rise. As a result, the tech-heavy Nasdaq Composite Index took the lead, allowing the U.S. stock market to resume its northward journey after a highly disappointing 2022.
Additionally, the ongoing technology rally has been led by a massive push into artificial intelligence (AI), particularly generative AI. The rapid uptake of digital technology and the internet across the world during lockdowns has ushered in the massive adoption of AI. As a result, the Nasdaq Composite Index rose 9.1% in the first quarter of 2024, after rising 43.4% in 2023.
Apart from technology stocks, several stocks in the non-tech sector have also performed well since the start of the year. Despite being a high-tech index, the Nasdaq Composite Index also has a diverse structure. Several stocks from the non-technology sector are included in the index.
Several of these non-tech stocks listed on the Nasdaq Composite with favorable Zacks Ranks are expected to beat their first-quarter results. Investing in these stocks is likely to be fruitful.
our picks
We narrowed our search to five non-tech stocks listed on the Nasdaq Composite that have the potential to outperform their first quarter results. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP.You can see See the complete list of today's Zacks #1 Rank stocks here.
Our research shows that stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP have as much as a 70% chance of earnings upside. These stocks are expected to rise in price after the announcement of financial results. Use the Earnings ESP filter to find the best stocks to buy or sell before they're reported.
The chart below shows the price performance of five stocks over the past quarter.
Packer Co., Ltd. (PCAR – Free Report) is one of the leading companies in the trucking industry, with reputable brands such as Kenworth, Peterbilt, and DAF. PCAR he achieved record revenue and net profit in 2023. PCAR expects strong orders in North America this year. Continued growth in aftermarket parts is also a positive.
A growing network of parts distribution centers, dealer locations and independent TRP stores, as well as managed dealer inventories and an innovative e-commerce system, support the Parts division. PCAR's outlook is expected to further strengthen as efforts towards electrification, connected car services and advanced driver assistance system options accelerate.
Zacks Rank #1 PACCAR has an Earnings ESP of +1.25%. The Zacks Consensus Estimate for current-year earnings has improved 1% over the past 60 days. PACCAR has experienced earnings surprises over the last four reported quarters, exceeding the average return of 17.1%. The company is scheduled to report earnings on April 30 before the opening bell.
Coinbase Global Co., Ltd. (coin – Free Report) provides financial infrastructure and technology for the US and international crypto economy. COIN provides the leading financial account in the cryptocurrency space for consumers and a marketplace with liquidity pools for trading crypto assets for institutions. Technologies 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%. The expected profit growth rate for this period is over 100%. The Zacks Consensus Estimate for current-year earnings has improved 54.1% over the past 30 days.
Coinbase Global has posted surprise earnings surprises of 377.6% over the past four reported quarters. The company plans to announce its financial results after the closing bell on May 2nd.
Robinhood Markets Co., Ltd. (hood – Free Report) 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 uses the Robinhood Crypto platform to buy and sell Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies.
Zacks Rank #2 Robinhood Markets has an Earnings ESP of +25.93%. The expected profit growth rate for this period is over 100%. The Zacks Consensus Estimate for current-year earnings has improved 26.1% over the past 30 days.
Robinhood Markets has delivered earnings surprises of 166.6% over the past four reported quarters, on average. The company plans to announce its financial results after the closing bell on May 8th.
Wingstop Co., Ltd. (wing – Free Report) We operate a restaurant as a franchise. WING's operating segments consist of a franchise segment and a company segment. WING offers classic wings, boneless wings, and tenders that are prepared to order, hand-sauced, and seasoned in a variety of flavors.
With a Zacks Rank #2, Wingstop has an Earnings ESP of +4.60%. The expected profit growth rate for this fiscal year is 21.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past seven days.
Wingstop has posted earnings surprises of 21.3% over the past four reported quarters, on average. The company plans to announce its financial results before the opening bell on May 1st.
Carlyle Group Co., Ltd. (CG – Free Report) has benefited from an appropriate assets under management (AUM) balance and efforts to diversify into new avenues. The Company expects fee income AUM and total AUM to increase by 17.3% and 19.1%, respectively, in 2024. Revenue growth was also driven by CG's efforts to expand its investment platform. Given CG's strong earning power, capital distribution is expected to continue.
Zacks Rank #2 Carlyle Group has an Earnings ESP of +0.66%. The expected profit growth rate for this fiscal year is 21.9%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past seven days.
The Carlyle Group posted unexpected earnings surprises in three of the last four reported quarters, with an average return of 17%. The company plans to announce its financial results before the opening bell on May 1st.
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