5 Red Hot Stocks With Fabulous Earnings Records

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Earnings season picks up this week as dozens of big-cap companies are expected to report earnings, including the first Magnificent 7 stock, Tesla, and one of the former FANGMAN stocks, Netflix.

With the S&P 500 breaking out to new highs, it’s not surprising to find many big-cap stocks also doing the same. 4 out of 5 of these featured stocks have also broken out to new all-time highs. Additionally, they each have excellent earnings surprise track records, with 2 of them having perfect 5-year beat streaks.

It’s not easy to beat every quarter, or nearly every quarter, for 5 years. That time period includes the COVID pandemic, which tripped up many companies. That makes these earnings streaks even more impressive.

Can they beat again? And will it be a catalyst for these stocks to keep breaking out?

5 Red Hot Stocks with Fabulous Earnings Records

1. Intuitive Surgical, Inc. (ISRG - Free Report)

Intuitive Surgical has beat on earnings 3 quarters in a row. Shares of Intuitive Surgical have rallied to new highs again, gaining 44.9% over the last year. It has a 5-year return of 107.3%, which is beating the S&P 500’s of 79%.

Intuitive Surgical isn’t cheap though. It trades with a forward P/E of 59.

Will Intuitive Surgical make it 4 beats in a row this week?

2. Tesla, Inc. (TSLA - Free Report)

Tesla had a rare earnings miss last quarter. It was the first miss in 11 quarters.

Shares of Tesla have not re-taken the 2021 highs, but they’ve gained 59% over the last year which easily beat the S&P 500’s gain of 21.8%.

Tesla isn’t cheap. It trades with a forward P/E of 56. But investors have never cared about Tesla’s valuation.

Tesla shares are down 16% in the last month. Is this a buying opportunity?

3. ServiceNow, Inc. (NOW - Free Report)

ServiceNow is an earnings all-star. It hasn’t missed in 5 years. That’s impressive given the global economic conditions during the pandemic.

Shares of ServiceNow are at new all-time highs. It’s rallied 70% in the last year, easily outperforming the S&P 500 at 21.8%. You won’t get ServiceNow cheap, however. It trades with a forward P/E of 59.

Can the big rally in ServiceNow continue?

4. United Rentals, Inc. (URI - Free Report)

United Rentals has only missed 4 times in the last 5 years but two of them were in the first half of 2023. It has resumed beating, however, and has now beat the last 2 quarters.

Shares of United Rentals have jumped 51% in the last year, which easily beat the S&P 500’s 21.8%. It’s near its all-time highs but United Rentals is still cheap. It has a forward P/E of 13.2.

Should value investors consider United Rentals even as it hits new highs?

5. Visa Inc. (V - Free Report)

Visa has the most incredible earnings surprise streak on the Street. It hasn’t missed since it went IPO in 2008. What a record.

Shares of Visa have finally busted out to new all-time highs again, after treading water for a few years. It has gained 21% over the last year, which is mostly in-line with the S&P 500.

Visa is cheaper than it was in 2021, when it last hit new highs. It is now trading with a forward P/E of just 27. It traded in the 40s in 2021.

Is Visa back?

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