Time to Buy These High Growth Stocks as Earnings Approach

This week’s earnings lineup will be highlighted by several growth stocks with none standing out more than Airbnb ABNB and DaVita DVA.

Both are solid growth options among the technology sector and medical sector respectively with now appearing to be a good time to buy as their Q4 results approach on Tuesday, February 13.

Airbnb Q4 Preview

Airbnb’s expansion has started to justify its hype as a leading platform to book unique or more intimate stays outside of common hotel offerings. Adding nearly 1 million global listings over the last year Airbnb’s strong momentum is expected to continue following a record travel season for the company during the third quarter.

Fourth quarter sales are projected to rise 14% to $2.16 billion and EPS projections of $0.67 a share would represent 39% growth. Airbnb is now expected to round out fiscal 2023 with total sales climbing 17% to $9.86 billion and annual earnings skyrocketing 201% to $8.40 per share. Furthermore, Airbnb has surpassed earnings expectations for 10 consecutive quarters posting a very impressive average earnings surprise of 49.99% in its last four quarterly reports.

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Image Source: Zacks Investment Research

DaVita Q4 Preview

DaVita has remained one of the most intriguing healthcare companies due to its expansion as a dialysis services provider throughout the United States. With its growth prospects seemingly essential to society DaVita’s stock also stands out in terms of value.

To that point, DaVita’s stock trades at a very reasonable 12.9X forward earnings multiple with Q4 EPS anticipated at $1.53 a share and up 38% from $1.11 per share a year ago. Plus, Q4 sales are expected to rise 3% to $3 billion.

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Image Source: Zacks Investment Research

DaVita is now projected to end FY23 with total sales up 3% to $12 billion and annual EPS expanding 22% to $8.07 per share. Notably, DaVita has beaten earnings expectations in each of its last four quarterly reports posting an average earnings surprise of 36.55%.

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Image Source: Zacks Investment Research

Takeaway 

At the moment Airbnb and DaVita’s stock currently sport a Zacks Rank #2 (Buy) attributed to their intriguing growth narratives and annual earnings estimate revisions remaining higher for both companies over the last 90 days. It would be no surprise if Airbnb and DaVita’s stock drift higher in the coming weeks if they can reach or exceed their lofty growth projections for Q4; especially if this is accompanied by positive or better-than-expected guidance.

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DaVita Inc. (DVA) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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