3 Stocks to Buy Following Robust Results
Throughout the Q1 cycle so far, several companies – Palantir PLTR, Cboe Global Markets CBOE, and Centene CNC – posted results that had investors pleased, with each raising their outlooks in one way or another and enjoying bullish post-earnings reactions.
Let's take a closer look at what there was to like within each respective release.
PLTR Keeps Rolling
Palantir continued to experience serious growth, a theme that's been present amid the AI frenzy. Sales grew an impressive 39% from the year-ago period, with the company also raising its current year sales outlook in a big way.
As shown below, analysts have already adjusted their current-year sales expectations accordingly, with the updated $3.9 billion estimate suggesting 41% growth year-over-year.
Palantir's customer count grew nearly 40% year-over-year and 8% sequentially, also booking its highest U.S. commercial total contract value throughout the period ($810 million), which grew a staggering 180% year-over-year.
Analysts have also upwardly revised their EPS expectations, a bullish sign concerning near-term share performance. Overall, the stock remains a great selection for those seeking exposure to the AI theme.
Centene Raises Outlook
Adjusted EPS of $2.90 and sales of $46.6 billion from Centene blew away our consensus estimates, with earnings up a strong 28% year-over-year. Higher than expected membership growth led the company to up its 2025 premium and service revenues guidance by $6.0 billion, which already improved by a strong 17% YoY throughout the quarter.
As shown below, Centene's sales have remained strong over recent periods, with the most recent period reflecting a notable acceleration. The company also maintained its current year EPS guidance, providing investors with a nice sense of stability in an anxious setting.
Analysts adjusted their current year sales expectations accordingly following the release and guidance upgrade, with Centene now expected to post $178.7 billion in revenues in its current fiscal year. The stock also sports a favorable Zacks Rank #2 (Buy).
Cboe Breaks Records
Cboe Global Markets' results also came in strong, posting record adjusted EPS of $2.37 (up 21% YoY) and record net revenue of $562.5 million (up 13% YoY). And for the cherry on top, CBOE upped its 2025 organic revenue growth guidance, further adding to the positive picture.
CBOE also reported record Options net revenue of $352.4 million, up 15% year-over-year. Global FX net revenue of $21.3 million also reflected a fresh record, climbing 16% year-over-year. The company's top line has shown an acceleration over the past year thanks to favorable trading conditions, as shown below.
The stock now sports a favorable Zacks Rank #2 (Buy), with analysts revising their earnings expectations higher across the board following the release. The favorable near-term earnings outlook alludes to continued bullish price action.
Bottom Line
The 2025 Q1 earnings season is slowly grinding by, with the majority of S&P 500 companies already delivering their quarterly results.
Palantir PLTR, Cboe Global Markets CBOE, and Centene CNC all posted results that had investors pleased, with each raising their outlooks in one way or another.
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Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Cboe Global Markets, Inc. (CBOE): Free Stock Analysis Report
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