3 Earnings Swings Investors Can Still Ride for Growth Potential

Key Points

• Investors fearing the volatility of earnings season could consider these three stocks as an opportunity to tap into growth.
• Fundamental factors bring a thesis for the potential double-digit upside present in these companies today.
• Wall Street analysts and institutional capital agree that today's list is a sensible choice after earnings swings.

There are many reasons why investors choose to stay away from stocks during and close to earnings announcements, one of them being the elevated levels of volatility and the other being the wild swings that the stock can take in any given direction. However, once the volatility pockets are spoken for, the real investors decide to come in and play.

This is why today’s list of post-earnings stocks can be helpful for investors looking to find companies with potential long-term upside for their portfolios and a relatively quick path to safety as volatility begins to subside after earnings announcements. This is especially true as fundamental factors align with the technical theme of volatility being put to the side.

Understanding where this opportunity stems from, names like eBay Inc. NASDAQ: EBAY, Snowflake Inc. NYSE: SNOW, and even Salesforce Inc. NYSE: CRM call for the best setups after their earnings volatility spikes. Being part of the market’s technology sector is not the only thing these companies have in common; as investors will find out shortly, there are other reasons to consider a potential double-digit upside in these names.

Wall Street Thinks eBay’s Stock Dip Could Be Bought

After announcing its most recent quarterly earnings results, eBay shares declined by as much as 9.5%, giving everyone the impression that the stock—or the company—is not meeting investors' performance expectations. However, other participants were able to see past this volatility.

Analysts from Benchmark, for example, decided to reiterate their Buy rating on eBay stock as of February 2025 and boost their valuation targets as well. Where they previously saw the stock valued at only $65 per share, the recent figures in the quarterly announcements prompted them to land on a higher target today.

This new view would imply that eBay stock’s fair value stands at $75 per share, which calls for a new 52-week high and a net upside of as much as 20% from where it trades today. Investors should keep in mind the significance of analysts boosting a stock in the middle of bearish price action.

That might also be the reason why institutional buyers from Ameriprise Financial decided to boost their holdings in eBay stock by as much as 12.4% as of February 2025, bringing their net position to a high of $1.8 billion today, or 5.9% ownership in the company to show for more bullish sentiment coming into the name.

A Premium Justified For Snowflake Stock Today

Whenever the market chooses to overpay for any given stock, there is typically a good reason for it to do so, despite what the school of value investing might say about an “Expensive” stock. When it comes to Snowflake stock, there are a couple of justifications for this premium.

As more of the global economy goes online, cloud-based businesses like Snowflake will be called upon for their services and ability to help bring data and infrastructure online. This is one reason to keep an eye on Snowflake and maybe the same reason why analysts at Cantor Fitzgerald decided to boost the stock.

 Investors can also see the 16.4% increase in holdings from UBS Asset Management Americas as of February 2025, bringing their net position to a high of $347.9 million today. This is another bullish factor for investors to consider and lean on today.

Salesforce Stock Shares The Same Tailwinds

Like the other names in this list, Salesforce stock is now showing the same potential upside and sentiment coming from Wall Street analysts. Investors can see this through the recent Buy rating placed by Canaccord Genuity Group analysts, who now see the stock valued at $400 per share.

This view is yet another 52-week high implied by these analyst targets, and it is also another reason for investors to tap their portfolios into a net upside of as much as 36% from where it trades today. This supports the belief that the digital economy and business activity will rely on services like Salesforce’s in the near future.

With this in mind, another sentiment factor investors can consider is the 2.5% decline in Salesforce stock’s short interest over the past month, a sign of bearish capitulation in the face of all the fundamental and technical factors helping the stock push to potential double-digit upside from today.