Two Stocks to Buy After Strong Earnings

The stock market's reaction to a company's earnings does not always reflect what's actually in the earnings report. In some cases, investors expected more and when the business doesn't deliver, they head for the exits. Other times, the reported earnings justify a stock's recent price movement and shares continue moving up and to the right.

This most recent quarter, Twilio (NYSE: TWLO) stock was a victim of the first description above and EPAM Systems (NYSE: EPAM) illustrates the latter description.

Overall, both companies reported strong results, but the market's reactions were quite different. Let's look at why these two stocks might be buys, regardless of the initial market reaction to an earnings report.

Source Fool.com