S&P 500   4,410.13
DOW   34,364.50
QQQ   353.30
S&P 500   4,410.13
DOW   34,364.50
QQQ   353.30
S&P 500   4,410.13
DOW   34,364.50
QQQ   353.30
S&P 500   4,410.13
DOW   34,364.50
QQQ   353.30

Earnings Roundup: 3 Growth Stocks to Buy After Strong Quarters

Saturday, November 6, 2021 | Sean Sechler
Earnings Roundup: 3 Growth Stocks to Buy After Strong Quarters

Strong Earnings Can Be the Perfect Catalyst for Higher Prices

As we head deeper into earnings season, we’ve already witnessed some truly impressive reports coming out of the growth area of the market. A strong report can oftentimes catch the market by surprise and lead to a big gap up in the share price, which can sometimes signify the start of a new trend to the upside. Since these companies are expected to deliver quarter after quarter of earnings growth, it's all the more impressive when they can surpass the lofty expectations on the street.

It can be quite difficult to keep track of all of the companies that deliver strong reports each quarter, which is why we’ve put together the following earnings roundup to help you stay on top of this busy time of the year. Keep reading below for insight about 3 growth stocks to buy after they recently reported strong quarterly earnings.

Airbnb (NASDAQ: ABNB)

This growth stock might just be the best way to play the rebound in the travel industry, particularly since the company just reported its most profitable quarter ever. Airbnb operates a global platform that connects hosts and guests online so that they can book a place to stay. The company’s platform is unique in that it offers travelers a few benefits over hotels such as lower-cost accommodations, lodgings with household amenities, and more convenient locations.

The company is clearly benefitting from widespread vaccination efforts and pent-up travel demand, as Airbnb reported its highest-ever revenue and net income figures in Q3. The company saw revenue of $2.2 billion, up 67% year-over-year, and net income of $834 million, up 280% year-over-year, confirming that the travel industry rebound is the real deal. This strong earnings report could ignite a rally to new all-time highs, which is why this growth stock should absolutely be on your radar going forward.

Datadog (NASDAQ: DDOG)

Data is like gold in today’s technology-driven business world, which is a big reason why Datadog is such an intriguing growth stock. The company provides a monitoring and analytics tool for information technology and DevOps teams to help them determine performance metrics and keep their cloud applications secure. Avoiding downtime and making sure that customers are benefitting from a strong user experience is essential for companies operating in the cloud, and Datadog makes that possible with its cutting-edge platform.

The company just reported its Q3 financial results and clearly impressed market participants, as the stock closed at new record highs following the report. The company saw its Q3 revenue grow by 75% year-over-year to $270 million and stated that it had 1,800 customers with an ARR of $100,000 or more as of September 30th, 2021, which is an increase of 66% year-over-year. This growth in the number of large customers for the company speaks volumes about how successful its platform is at attracting big clients that deliver strong recurring revenue. If the stock can hold its post-earnings gap, the $200 per share mark seems like it's in play for Datadog investors.

ON Semiconductor Corp (NASDAQ: ON)

We’ve witnessed some truly monster moves with semiconductor stocks over the last few weeks, but this is one company in the industry that doesn’t get as much attention as it deserves. ON Semiconductor is a global supplier of analog, digital signal processing, mixed signal, advanced logic, data management semiconductors, memory and standard semiconductor components, and integrated circuits. The stock is trading at new all-time highs following another strong quarter of earnings and is worth a look at this time for several reasons.

First, the company’s exposure to the EV market makes it a unique option in the semi space, as ON Semiconductor is a major supplier of image sensors and power semiconductors that are important for creating these high-tech vehicles. The company also offers exposure to communications and industrial markets, which means it’s a great pick for taking advantage of trends like 5G network growth. ON Semiconductor recently reported record Q3 revenue of $1.74 billion, up 32% year-over-year, and record non-GAAP diluted earnings per share of $0.87, confirming that the company is executing at a high level even with the global chip shortage.

Should you invest $1,000 in ON Semiconductor right now?

Before you consider ON Semiconductor, 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 ON Semiconductor wasn't on the list.

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

View The 5 Stocks Here

 


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
ON Semiconductor (ON)2.5$55.34+1.1%N/A36.17Buy$59.79
Datadog (DDOG)2.7$136.07+8.4%N/A-971.86Buy$182.88
Airbnb (ABNB)2.6$147.90-5.6%N/A-12.24Hold$192.70
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