Last Call! 3 Growth Stocks Poised to Soar After Earnings Dip

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This earnings season broke some investors’ hearts, even for the firms that actually reportedly have handsome top- and bottom-line beats. Indeed, quarterly earnings are much more than how the numbers stack up against analyst estimates. Though beating or missing the consensus is often enough to fuel a sizeable move in either direction for shares, full-year and the next quarter’s guidance also plays a big role.

Heck, you could argue that the guide has played a bigger role in dictating the trajectory of stock over the past few weeks. Of course, one must also consider the impact of a stock’s valuation multiples going into a quarter. It’s too high a bar, and you could be looking at a rough reaction, regardless of how awesome the numbers came in.

This piece will look at three stocks I believe have great value after their post-earning stumbles. While the quarters have ranged from mildly disappointing to “just not enough to garner enthusiasm,” I view the following as worth watching, perhaps even nibbling at on the dip.

Whether the post-earnings dip represents a timely “last call” ahead of closing time remains to be seen. There are no guarantees in the investment world, after all!

Electronic Arts (EA)

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Shares of the $33.8 billion video game juggernaut Electronic Arts (NASDAQ:EA) fell under pressure last week as it stumbled past its quarterly earnings. Not only was EA’s fiscal fourth quarter unimpressive (earnings per share fell well short of expectations), but the fiscal 2025 guide came in a tad on the light side.

Investors punished EA stock accordingly, with shares now down close to 3% prior to its big reveal. It’s a modest plunge, but one that I believe is more than buyable or, at the very least, worth stashing on your radar. Though there was no sugar-coating Q4, I think the rough patch is forgivable, as there wasn’t a massive new title to drive sales for the quarter. Indeed, the mid-spring tends to be a rather seasonally weak period of EA, anyway.

Its sports franchises (think Madden, EA Sports FC and NHL) tend to kick off with new releases in late summer and early autumn. In the meantime, EA must continue investing heavily in its growth pipeline and in new content to support its current slate of live-service titles. Though less timely, I view EA stock as an intriguing buy while it’s going for 27.1 times trailing price-to-earnings (P/E).

Airbnb (ABNB)

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Airbnb (NASDAQ:ABNB) shares stumbled after they reported last week. It was an ugly drop following first-quarter numbers that actually topped Wall Street estimates on the bottom line. In any case, investors didn’t forgive the decent showing as revenue guidance (now calling for 8-10% for the second quarter) came up just a bit short.

ABNB stock shed more than 6% in the following sessions before recovering modestly after that. Today, ABNB shares are off over 11% from 52-week highs and around 30% from its 2020 all-time highs. I’d argue that the latest correction is overdone for such a differentiated company that offers unique lodging experiences, especially given the more intriguing long-term roadmap.

Over the long term, Airbnb will have plenty of room to expand internationally. Further, there’s room to evolve into a more “cross-vertical” company. At 19.9 times trailing P/E, ABNB stock may very well be a bargain right here.

Meta Platforms (META)

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Finally, we have the great Meta Platforms (NASDAQ:META), which nosedived on its April earnings only to regain most of the ground in May. Sure, the early bounce-back gains have already been made by investors who jumped in immediately after the number caused considerable selling activity. Still, META stock is a great AI play at below $470 per share.

Further, renewed fears over AI spending concerns may just drag shares lower again over the coming weeks should the dip-buyers grow exhausted. Either way, such big bets, I believe, make Meta stand out as a top-five, maybe even top-three AI stock to own for the next five years. Could such AI firepower make the current 26.9 times trailing P/E a tad too depressed? I believe so.

The only thing that may have investors on pause is the less-than-appealing technical picture. Indeed, it certainly looks like META stock is close to rolling over here. I wouldn’t hesitate to act on even lower prices if it does.

On the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the…