Pre-Earnings Gems: 3 Stocks Poised for Positive Surprises

Stocks to buy

We are halfway through the earnings season, and what an exciting time this has been! Several companies have reported exceptional results, proving that the economy is on its way to recovery. We will see better days ahead, and the stock market could soar. While many companies have already announced results, several stalwarts have not yet. These three companies are expected to report positive earnings surprises, which can boost the stock in the following days.

Shopify (SHOP)

Shopify on the phone display.

Source: Burdun Iliya / Shutterstock.com

Popular e-commerce platform, Shopify (NYSE:SHOP), has had some of its best days in 2023. SHOP stock is up 83% in the past year and 20% year to date. Trading at $89 today, the stock is on its way to hit $100 in the coming weeks.

Shopify is a popular service provider for merchants and provides several reasons for merchants to remain on the platform. It offers easy and quick setup and offers services like website hosting, payment processing and marketing. As consumer spending improves, Shopify will only benefit. 

In the third quarter, it saw a revenue of $1.7 billion, up 25% YOY and the gross merchandise volume was $56.2 billion, up 22% YOY. The market is massive and Shopify is one of the biggest players out there. It has immense potential for expansion and is growing despite competition.

Shopify offers all the features a business owner needs to sell their products and steadily attract enterprises. It attracts beat analyst estimates for the previous quarter. I believe it will do the same in the results today. 

The company has cut costs, which helped post positive net income in the third quarter. It might also sustain the position for the fourth quarter. I am highly optimistic about the fourth quarter results since they will be driven by holiday shopping, which will help the company beat expectations again. 

Shopify is a good business with massive growth potential. Positive earnings surprise will push the stock higher this week.

Airbnb (ABNB)

Airbnb (ABNB) logo on phone screen stock image.

Source: sdx15 / Shutterstock.com

If you are looking for one growth stock to buy and hold for the long term, it is Airbnb (NASDAQ:ABNB). It is one of the biggest online marketplaces for homestays and experiences. The company enjoys a global presence and has built a strong reputation.

The company is aiming for International growth and has announced an increase in guest fees for cross-currency transactions, starting April. The holiday season will drive the revenue numbers higher for Airbnb, and the company could report another stellar quarter.

It will be interesting to see the company’s outlook for 2024 and get more details about the fees. Several analysts have a buy rating for the stock and are optimistic about the results. Trading at $153, the stock isn’t cheap, but it is worth your money.

ABNB stock is up 14% year to date and 32% in the past year. The stock is close to the 52-week high, and could hit a new high in the coming weeks. In January, ABNB stock was trading at $137. 

The market expects a significant rise in revenue and EPS for this quarter, which will set the tone for the rest of the year. The company has guided revenue from $2.13 billion to $2.17 billion in the quarter, with a year-over-year growth between 12% and 14%. 

The travel industry is huge, and Airbnb has a massive addressable market. It has already seen the user base growing and saw an 18% YOY increase in revenue in the third quarter. ABNB stock will remain relevant for years to come and it will not disappoint.

Coca-Cola (KO)

ko stock coca cola life

Source: Coca-Cola

Global conglomerate Coca-Cola (NYSE:KO) has become a household name. This dividend stock is worth buying and holding onto for years to come. While it may not see a huge upside or give an earnings surprise, we can expect a stable return from the stock.

Despite being one of the most resilient stocks in the industry, KO stock has moved in the range of $53 to $65 over the past year. It is trading at $59 today, up 31% over the past five years. It will be interesting to see the company’s fourth-quarter results as it enjoys a dynamic global operation and remains shielded from the ups and downs in the US economy.

Despite a price hike, the company saw an 11% organic growth in the third quarter. Consumers are so used to having Coca-Cola beverages that the brand will remain a staple in households and restaurants. The company reported a revenue of $11.95 billion in the third quarter, up 8% YOY, and expects a 10% to 11% rise in organic sales this year. 

Coca-Cola has a wide umbrella of products which sets it apart from competitors. It is moving towards healthier drinks, keeping consumer preferences in mind, and has grown dividends for over 60 consecutive years.

The company enjoys a dividend yield of 3.08%, and if you want to enjoy passive income, this stock is worth buying. Several analysts have raised the price target of KO stock and are highly optimistic about the results. 

On the date of publication, Vandita Jadeja did not hold (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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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