3 stocks that can deliver significant growth thanks to strong third quarter results
As the peak of the third-quarter earnings season approaches, investor attention is focused on several companies that analysts believe have the potential to achieve significant earnings growth. With favorable market conditions, strategic initiatives and growing demand, these companies promise exceptional results.
Let's take a closer look at the factors that can contribute to their expected success and strengthen their market position.
Robinhood Markets
Robinhood Markets $HOOD is a well-known fee-free trading platform that has gained popularity due to its accessibility and simplicity. The company focuses on enabling trading of stocks, cryptocurrencies and other assets to the general public. In recent years, Robinhood has also diversified its revenue through products such as options trading and subscriptions, thereby strengthening its financial stability.
Currently, analysts expect Robinhood to record a year-over-year profit growth of up to 276%, a remarkable turnaround from last year's loss. Revenue is expected to grow by more than 39% to reach $649.6 million. The main reasons for this forecast include growing customer interest in investments, increasing interest income from uninvested money, and increasing activity in cryptocurrency trading. Robinhood has a strong financial position, as evidenced by its above-average financial health rating based on analyst data.
DraftKings
DraftKings $DKNG is one of the major players in the field of online sports betting and fantasy sports. The company is particularly benefiting from the growing legalization of sports betting in the US and the increasing popularity of mobile betting platforms. DraftKings is expected to see strong growth due to the ongoing NFL and NBA seasons and other major sporting events.
DraftKings is estimated to reduce its loss per share to -0.25 USD, an improvement of 137% from a year ago. Revenue is expected to grow nearly 40% year-over-year to reach $1.1 billion. Analysts expect the company's growth to continue to be driven by innovative product offerings and strategic partnerships with major sports leagues. DraftKings also boasts a high financial health rating and a growing customer base.
ON Holding
Swiss company ON Holding $ONON, known for its high-performance running shoes, is quickly making its mark in the athletic footwear market. Headquartered in Switzerland, ON Holding enjoys growing demand, particularly in North America and Europe, where it has built a strong customer base.
Analysts expect ON Holding to show significant growth due to its expansion into new markets and growing popularity among athletes and general consumers. The company's stock recently reached its peak in the past 52 weeks and at its current market capitalization, the company is worth approximately $15.9 billion. According to the Investing website, ON Holding's high financial health rating indicates the company's strong market position, which may bode well for its continued growth.
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Source: Investing, Yahoo, TheMotleyFool.