As Q2 earnings season roars to life, a trio of stellar Zacks stocks has emerged victorious, outshining a crowded field with results that turned heads on Tuesday.
Let’s take a deep dive into the quarterly triumphs of three distinguished stocks, all sporting a coveted Zacks Rank #2 (Buy).
Arista Networks (ANET)
Among the tech giants lighting up the earnings stage is Arista Networks, which stole the show by trouncing Q2 EPS estimates by 8% with a stellar $2.10 per share. This marked a robust 33% surge from the comparable quarter’s $1.58 per share. The cloud networking solutions maven also flexed its muscles on the revenue front, surpassing expectations by 3% as its top line swelled by an impressive 16% year over year to hit $1.69 billion, up from $1.45 billion in Q2 2023.
PayPal (PYPL)
Flying somewhat under the radar this earnings week is PayPal, which delivered a knockout punch with Q2 EPS of $1.19, sailing past forecasts by 24%. The 2% year-on-year rise from the previous quarter showcased the payment solutions frontrunner’s resilience and adaptability. Bolstering its strong performance, PayPal also revised its EPS guidance upwards for fiscal 2024, backed by Q2 sales of $7.85 billion, beating expectations by 1% and climbing 8% from last year.
Northern Oil and Gas (NOG)
Amidst geopolitical ripples in oil markets, Northern Oil and Gas shone with a Q2 EPS of $1.46, a hefty 21% beat on estimates of $1.20 per share. Despite a slight downturn from $1.49 in a challenging operating environment, Northern Oil and Gas managed to exceed projections with Q2 sales reaching $561.03 million, 4% higher than anticipated and representing a robust 35% leap from the corresponding quarter.
Noteworthy is NOG’s 16% year-to-date growth, coupled with its appealing 7.9X forward earnings multiple. Furthermore, sporting a generous 3.94% annual dividend yield that has been on an upward trajectory, with 10 hikes in five years, NOG also boasts a modest 26% payout ratio, hinting at more dividend increases down the road.
These top-rated stocks, having weathered the Q2 storm with flying colors, appear primed for further upswings as earnings estimates are expected to trend upwards in the weeks ahead. This opportune moment presents a compelling case for investing in Arista Networks, PayPal, and Northern Oil and Gas, as they hold promise as enduring long-term assets.
