A week of earnings from top-rated growth stocks is underway, with Cava and Shopify leading the charge. Here’s a breakdown of their performances and what to expect:
Cava (CAVA) stock soared on August 23 after the company reported a 35% jump in Q2 revenue. Adjusted profit jumped 183% to 17 cents a share, while traffic climbed 9.5% and same-store sales increased 14.4%. The company has been on a growth streak since its IPO in June 2023.
Shopify (SHOP) also reported strong earnings, with an 86% jump in quarterly profit. Revenue rose 21% to $2 billion, and gross merchandise volume increased 22% to $67 billion. Shopify’s stock traded at around 85.25 when a weekly call option with a strike price of 86 was purchased for $5.10 per contract.
Other top-rated growth stocks include JD.com (JD), which reported an expected 12% increase in quarterly profit, and Alibaba (BABA), whose earnings are due Friday. Investors can use options trading strategies to buy these stocks at a predetermined price without taking significant risk.
This is just the beginning of earnings season, with many more top-rated growth stocks set to report their numbers. Stay tuned for further analysis and insights from IBD’s experts.
Source: https://www.investors.com/research/earnings-preview/cava-stock-shopify-cisco-systems-rally-earnings-reports