Should you watch these US stocks after Christmas and beyond?

Highlights:

• Global-E Online Ltd. posted an adjusted EBITDA of US$ 12.5 million in Q3 2022.
• Hub Group Inc. reported diluted earnings per share (EPS) of US$ 2.61.
• Trade Desk earned a (GAAP) revenue of US$ 395 million in Q3 2022.

 

As inflation seems to have cooled slightly in November, according to the latest CPI data, investors heave a sigh of relief after a gloomy outlook throughout 2022. The decades-high inflation and the Federal reserve’s aggressive monetary policies to combat it ruined the equity market sentiments. It was a bearish year in 2022, and investors were more worried about protecting their money. However, as the festive season is here, you may also want to look at the stock market with a fresh perspective and have a new outlook.

Amid, we take a look at five stocks and their performances in the recent quarter:

Global-E Online Ltd. (NASDAQ: GLBE)

E-commerce solutions provider Global E Online Ltd helps clients take their business to the next level through its platform. It helps enterprises in direct-to-consumer cross-border e-commerce.

Global E Online’s non-GAAP gross profit in Q3 2022 was reported at US$ 43.8 million, which was an increase of 92 per cent year over year. The company posted an adjusted EBITDA of US$ 12.5 million in the third quarter of fiscal 2022 compared to US$ 7.7 million in the same comparative period in 2021.

Revenue of the e-commerce service provider in the third quarter of fiscal 2022 grew 79 per cent YoY to US$ 105.6 million. Out of this, service fee revenue was US$ 47.8 million and fulfillment services revenue was reported at US$ 57.8 million.

Hub Group Inc. (NASDAQ: HUBS)

Hub Group is among the biggest asset-light providers of intermodal rail service. The group’s 60 per cent revenue is generated by its intermodal and transportation solutions division.

Hub Group has an EPS of 10.70, while the P/E ratio stands at 7.60. The company saw a growth of 26 per cent in its revenue and was reported at US$ 1.4 billion. The growth was across all segments of their business.

Hub Group also posted a jump in its operating income by 97 per cent to US$ 118 million (8.7 per cent of revenue) in the reported quarter. The company said it was propelled by favorable pricing, yield management, and operating efficiency. The diluted earnings per share (EPS) was reported at US$ 2.61, up 104 per cent compared to the same quarter in 2021.

Hub also completed the US$ 135 million share buyback authorization in the third quarter of fiscal 2022.

Okta Inc. (NASDAQ: OKTA)

Cloud-native security firm, Okta focuses on identity and access management. Based out of San Francisco, the company went public in 2017, and its two client stakeholder groups included the workforce and customers.

The cloud security enterprise has a price-to-book (P/B) ratio of 2.012.

The company's total revenue in the third quarter of fiscal 2023 was reported at US$ 481 million. It was an increase of 37 per cent YoY. The subscription revenue in the reported quarter was US$ 466 million, a growth of 38 per cent year-over-year.

Okta achieved net cash of US$ 10 million from operations or 2 per cent of total revenue in the third quarter of 2023. In the next quarter or the fourth and final quarter of fiscal 2023, Okta expects its total revenue to be from US$ 488 million to US$ 490 million.

Source: ©Kalkine Media®; © Canva via Canva.com

Snowflake Inc. (NYSE: SNOW)

Snowflake was founded in 2012, and it went public in 2020. The firm is a data lake, warehousing, and sharing enterprise with over 3,000 customers. Almost 30 per cent of its clients are from Fortune 500.

In the third quarter of fiscal 2023, Snowflake posted product revenue of US$ 522.8 million, which was a 67 per cent year-over-year jump. On the other hand, the revenue of the company in the reported quarter was US$ 557 million.

The product gross profit of Snowflake in Q3 2023 was US$ 376.8 million.

As of the third quarter of 2023, Snowflake had 7,292 total customers. It has 287 customers with trailing 12-month product revenue of more than US$ 1 million.

The Trade Desk Inc. (NASDAQ: TTD)

The Trade Desk Inc provides a technology platform for ad buyers. The company helps ad buyers create, manage, and optimize data-driven digital advertising campaigns across ad formats and channels through its cloud-based platform.

Trade Desk said its third quarter of fiscal 2022 was another strong quarter with a growth of 31 per cent. The digital company earned a (GAAP) revenue of US$ 395 million compared to US$ 301 million in the same quarter in 2021.

It posted a non-GAAP net income of US$ 129 million versus US$ 89 million in the corresponding quarter a year ago. The non-GAAP diluted earnings per share in the reported quarter was US$ 0.26 compared to US$ 0.18 in the same comparative period in 2021.

Bottom line:

The year has come to an end, and the festive season is peaking. So, the equity market also responds accordingly during this time. However, this year has been quite different. There was volatility and a bearish trend to subdue trading sessions right through 2022. So, as an investor, it is better to wait and watch during such times. A long-term strategy has often saved many investors from losing money in the short term. Alongside this, diversification is another technique to mitigate any risk associated with trading during volatile times. So, do thorough market research before putting your money on any sector or stock to remain safe during market upheavals.