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These 3 Top-Ranked Stocks Shined in May

Many stocks delivered strong performances in May, with better-than-expected results helping provide a boost for many.

Impressively, three stocks – NVIDIA NVDA, Palo Alto Networks PANW, and CrowdStrike CRWD – stole the show throughout the month, delivering outsized gains and crushing the general market. This is illustrated in the chart below.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

For those interested in momentum investing, let’s take a closer look at each.

NVIDIA

NVIDIA gripped the entire market following its blowout quarter, with the company posting results well above expectations and providing significant bullish revenue guidance.

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The chip titan posted EPS of $1.09, crushing the Zacks Consensus Estimate by nearly 20%. Quarterly revenue totaled $7.2 billion, 10% above expectations but lower than the year-ago quarter.

The real highlight came from the company’s Data Center segment, which includes AI operations. Data Center posted record revenue of $4.3 billion, climbing an impressive 14% from the year-ago quarter and 18% sequentially.

The reported value was 9% above the Zacks Consensus Estimate, snapping a streak of negative surprises within the segment.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

It’s no secret that NVDA shares are expensive, with the current 79.3X forward earnings multiple sitting well above the already steep 53.6X five-year median.

Still, investors have had little issue forking up the premium given the company’s artificial intelligence footprint.

In addition, analysts have become bullish on the company, pushing NVDA into the highly-coveted Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Palo Alto Networks

Analysts have raised their earnings expectations for Palo Alto Networks across nearly all timeframes following better-than-expected results, pushing the stock into a favorable Zacks Rank #2 (Buy).

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The company posted EPS nearly 20% ahead of expectations and delivered a modest revenue surprise, with the market cheering on the results post-earnings. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

CrowdStrike

CrowdStrike is a leader in next-generation endpoint protection, threat intelligence, and cyberattack response services. CRWD has witnessed positive earnings estimate revisions, with the trend particularly noteworthy for its current fiscal year (FY24).

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

CRWD’s 28.4% trailing twelve-month ROE is worth highlighting, reflecting a higher level of efficiency in generating profits from existing assets relative to peers.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Bottom Line

May was good towards many stocks, particularly NVIDIA NVDA, CrowdStrike CRWD, and Palo Alto Networks PANW.

All three widely outperformed the general market throughout the period, delivering serious gains to investors.

On top of strong momentum, all three sport a favorable Zacks Rank, indicating that analysts have become optimistic surrounding their near-term outlooks.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report

CrowdStrike (CRWD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research