Earnings season isn’t over yet, as there are still some big companies yet to report. Below are three stocks that are expected to release their quarterly results this week and that investors should watch closely, as they could get a big boost in share price.
Great Canadian Gaming (TSX:GC) has shown tremendous growth over the past year. In its most recent quarter it saw sales rise by 114% year over year, while profits doubled as well. And more sales growth could be on the way, as the company has been adding casinos into its portfolio.
Given how well the company has done over the past few years, its price-to-earnings multiple of 26 appears to be in line with the company’s growth, and that makes it a well-priced stock. And if the company reports another strong quarter on Tuesday when it releases its full-year results, investors should expect the stock to pop. I wouldn’t be surprised if it broke through $60 a share if it did.
Year to date, Great Canadian has risen 16% in value, and over the past 12 months it is up more than 65%. Although the stock is trading at its 52-week high, it’s still a great buy given how much potential it still has.
Stars Group (TSX:TSGI)(NASDAQ:TSG) is another big stock that could be due to soar this week. In the past year, its value has dropped by around 40%, and it hasn’t seen a rally in 2019 like other stocks have. The company struggled a lot in 2018 with some uninspiring quarters, but it still generated 74% growth in its most recent reporting period. The concern for investors, however, has been profitability; in the trailing 12 months, Stars Group has generated a net loss of US$16 million thanks in large part to one very bad quarter.
Like Great Canadian, there’s a lot of growth potential here, and at a price-to-book ratio of just 1.4, Stars Group looks like a very cheap buy given how high it could fly. It’s trading near its 52-week low, and with a good quarter, I could see it hitting $30 very quickly.
Spin Master (TSX:TOY) hopes it can muster up some much-needed growth in Q4, as in its previous reporting period, it saw sales rise by only 2%. However, with the company reporting on the holiday season, we could see a big performance from the stock, especially given how strong Black Friday sales were. The toy company has a lot of highly coveted products, and it could be a big benefactor from a strong economy.
However, with a strong international presence, Spin Master isn’t dependent on North America for growth, and that helps give the company some much-needed diversification and many different opportunities to grow over the long term.
In one year, Spin Master’s share price has declined by more than 20%. It could be a good buy, as it has seen a strong rally since January. This is another stock that I wouldn’t be surprised to have a strong earnings, and that’s why it could be a good buy before it releases its results.
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Fool contributor David Jagielski owns shares of The Stars Group. The Motley Fool owns shares of Spin Master. Spin Master is a recommendation of Stock Advisor Canada.