50% OFF
MarketBeat All Access
Get 30 days free. Save 50% your first year.
  •  days
  •  Hours
  •  Minutes
  •  Seconds
×
S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
What’s the Obsession Over Inflation? (Ad)pixel
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
What’s the Obsession Over Inflation? (Ad)pixel
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
What’s the Obsession Over Inflation? (Ad)pixel
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce & Gabbana archives for Milan show
S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
What’s the Obsession Over Inflation? (Ad)pixel
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
What’s the Obsession Over Inflation? (Ad)pixel
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
What’s the Obsession Over Inflation? (Ad)pixel
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce & Gabbana archives for Milan show
S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
What’s the Obsession Over Inflation? (Ad)pixel
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
What’s the Obsession Over Inflation? (Ad)pixel
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
What’s the Obsession Over Inflation? (Ad)pixel
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce & Gabbana archives for Milan show
S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
What’s the Obsession Over Inflation? (Ad)pixel
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
What’s the Obsession Over Inflation? (Ad)pixel
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
What’s the Obsession Over Inflation? (Ad)pixel
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce & Gabbana archives for Milan show

3 Blowout Earnings Reports That Could Mark Turning Points

3 Blowout Earnings Reports That Could Mark Turning Points

It wasn’t that bad after all. 

With the second quarter earnings season almost in the books, worries about a rash of negative earnings surprises have proven to be unfounded. According to the latest insight from Factset, roughly three out of four S&P 500 companies have reported positive EPS surprises, on par with the historic norm.

On the other hand, the big splash variety of earnings beats have been harder to come by. The average magnitude of the beats has significantly lagged the past. 

This means that companies that did wow us with big earnings surprises have stood out more. Based on the market’s reactions, we could someday look back at Q2 earnings as a major inflection point for these three stocks.

What Did We Learn From Trade Desk’s Q2 Report? 

Digital advertising leader Trade Desk, Inc. (NASDAQ: TTD) matched Wall Street’s EPS forecast of $0.20 but breezed past its top line estimate by reporting $377 million in Q2 revenue. The 35% year-over-year sales growth helped ease concerns of a major pause in global ad spending due to economic uncertainty—and sent Trade Desk shares flying. 

The stock gapped up 36% in heavy volume last week, distancing itself from the $50 where it had lingered since the last earnings announcement. The last time Trade Desk garnered as much trading attention in November 2021, it climbed to a record split-adjusted high above $110. 

Now trading in the mid-$70’s, there is still significant ground to make up—but some analysts think it's on the right path. Eight of nine sell-side firms reiterated buy ratings after the surprise Q2 update including Wells Fargo, which set a $100 price target.


The result and management’s bright outlook showed that demand for programmatic advertising is resilient. With a steady customer retention rate of 95%, some of the world’s biggest consumer brands continue to rely on the Trade Desk platform to power their omni-channel marketing campaigns. Grocery store chain operator Albertson’s recently became one of the latest to pull up a chair at the Trade Desk. 

Has Abbott Labs Stock Bottomed?

Last month, Abbott Laboratories (NYSE: ABT) posted Q2 EPS of $1.43 that marked 22% year-over-year growth and crushed the consensus estimate by more than 25%. The surprise was led by a strong performance in the company’s diagnostics business, which delivered 36% revenue growth thanks to strong demand for rapid Covid-19 tests. It hauled in an additional $1 billion in Covid testing sales compared to the prior year period.

While the diagnostics segment stole the show, even without Covid testing Abbott Labs generated 6% organic sales growth—a reflection of ongoing strength in pharmaceuticals and medical devices. The well-balanced growth combined with management’s upwardly revised EPS guidance sent the stock firmly off its 52-week low, and it has since settled in at the $110 level.

Going forward, Abbott’s rapid diagnostic still has plenty more to give. The company sharply raised its full-year Covid test revenue guidance from $4.5 billion to $6.1 billion as caseloads continue to flare up in Asia and other parts of the world. Meanwhile, the relaunch of infant formula is expected to provide a significant boost to second half earnings. 

With analysts raising their EPS estimates in the wake of the Q2 report and Abbott having a history of topping those estimates, the stock appears to have the wind at its back heading into the final months of the year. It is still down 21% year-to-date but, at a below-industry 23x earnings, has room to run.

Has Citigroup Stock Reached a Turning Point?

Citigroup Inc. (NYSE: C) gapped up in three-times average volume after its Q2 report and has trended higher since. Although earnings were down from a year earlier, they were 30% above what the Street was anticipating. 

The statement release was driven by improved net interest income that was buoyed by the Fed’s aggressive rate hike campaign. The ‘big four’ bank was able to charge more on its mortgages and other loan products, offsetting weakness in the investment banking business.

With more Fed rate hikes likely ahead, Citi’s earnings prospects are looking up for at least the next couple of quarters. From there, the fruits of long overdue investments in the personal banking and capital markets divisions could keep the momentum going. 

If the market does encounter a pronounced recession along the way, Citi is in a better position than most banking peers to weather the storm. In response to the Fed’s June 2022 stress test, the company announced that it will be raising its stress capital buffer to a more conservative 4%. 

Unfortunately for shareholders, the cautious financial stance comes at the expense of a stagnant dividend and suspended buyback program. Still, the stock’s 3.75% forward yield remains comfortably above the financial sector average of 3.2%. This along with expectations of more hawkish Fed action should make Citi shares worth banking on.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Abbott Laboratories (ABT)
3.4183 of 5 stars
$100.68-0.4%1.87%21.02Moderate Buy$132.46
Citigroup (C)
3.3279 of 5 stars
$44.26-2.9%4.61%5.66Hold$62.19
Trade Desk (TTD)
3.0213 of 5 stars
$57.70-2.6%N/A824.40Moderate Buy$83.75
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Abbott Laboratories right now?

Before you consider Abbott Laboratories, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Abbott Laboratories wasn't on the list.

While Abbott Laboratories currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastDo These Dividend Achievers Deserve A Place In Your Portfolio?

ETF portfolio manager, Dave Gilreath offers a perspective on “dividend achievers” and why these deserve a role in your portfolio

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.