Three companies that posted strong quarterly earnings warrant watching.
In the consumer sector, Victoria’s Secret (VSCO) reported that revenue increased by 8.1% to $2.27 billion. Non-GAAP EPS was $2.77. Despite forecasting revenue in 2026 higher than estimates, VSCO stock fell from $60 to close below $47 last week.
The short interest on VSCO stock is 11.1%.
Costco (COST) held the $1000 level after posting GAAP EPS of $4.58. Revenue grew by 9.2% to $69.6 billion. Shareholders may sleep well at night owning COST stock. Expect earnings to strengthen after the retailer gets a tariff refund from the government. Additionally, the company might reward investors with a special dividend.
Broadcom (AVGO) rose slightly after posting revenue growth of 29.4% Y/Y to $19.3 billion. In the second quarter, the firm expects revenue of $20.0 billion. Adjusted EBITDA is 68% of revenue.
Broadcom’s stock buyback program is a reason to continue holding a position. However, the stock-based compensation keeps growing. That limits the earnings power of the stock for shareholders.
Tech investors typically own Nvidia (NVDA) and Broadcom (AVGO). Taiwan Semiconductor (TSM) belongs to the buy list, too, since strong chip orders increase its revenue.
With the hot AI market driving LLM developments, compute demand is rising. That should lead to Broadcom hiking its full-year forecast next quarter.
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