The first-quarter earnings season kicks off with the big banks this week, and technology companies will follow soon thereafter.  

While the mood on Wall Street appears muted because of the pause in J&J’s vaccine rollout, all signs currently point to a strong rebound in the economy. We have already seen reports about manufacturing and construction activity picking up and the services segment getting back to hiring. And although it was feared that the chip shortage would hit autos, that problem has also retreated to the rear view.

Most importantly, earnings estimate revisions continue to move higher, sometimes in big leaps — and that is always followed by appreciation in share prices.

So even if the inoculation period takes longer than expected, 2021 still promises to be a great year for companies, stocks and investors.

Finding winners before the earnings season is easy using Zacks proprietary methodology. Just go for Buy or Hold-ranked stocks with a positive earnings surprise prediction (ESP), and bingo!

The ESP assumes that the most recent estimate is the most accurate, since it includes the latest factors that can have a bearing on the results. And the difference between the consensus and the most accurate estimate (earnings ESP) is an indication of the positive or negative surprise. And a positive surprise is usually met with appreciation in share price.    

But you may want to be more selective to increase your chances of success. In that case, you could add more criteria, as I’ve done here-

Whirlpool Corporation (WHR Quick QuoteWHR - Free Report)

Whirlpool is one of the world’s largest manufacturers of home appliances such as laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, and mixers. The company manufactures products in 14 countries and markets products in nearly every country around the world.

Zacks Rank #2 (Buy)
Value Score A
Growth Score A
Momentum Score B
Industry: Household Appliances (top 18%)
2021 revenue and earnings growth 4.6% and 9.2%, respectively
2021 earnings estimate up 4.8% in last 90 days
2022 estimate up 0.3% in the last 90 days
Earnings ESP for March 2021 quarters 1.39% (Earnings report date Apr 21)
Shares are up 31.6% year to date

Olympic Steel, Inc. (ZEUS Quick QuoteZEUS - Free Report)

Olympic Steel is a leading U.S. metals service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel, and aluminum products. The company's CTI subsidiary is a leading distributor of steel tubing, bar, pipe, valves and fittings, and fabricator of pressure parts for the electric utility industry.

Zacks Rank #1 (Strong Buy)
Value Score A
Growth Score A
Momentum Score F
Industry: Steel - Producers (top 6%)
2021 revenue and earnings growth 44.3% and 808.1%, respectively
2021 earnings estimate up 138.2% in last 90 days
2022 estimate up 46.3% in the last 90 days
Earnings ESP for March 2021 quarters 8.11% (Earnings report date May 7)
Shares are up 113.6% year to date

Tilly’s, Inc. (TLYS Quick QuoteTLYS - Free Report)

Tilly's is a specialty retailer in the action sports industry selling clothing, shoes and accessories for men, women and kids.

Zacks Rank #2
Value Score A
Growth Score A
Momentum Score F
Industry: Retail - Apparel and Shoes (top 33%)
2022 (ending Jan) revenue and earnings growth 18.8% and 1,950.0%, respectively
2022 earnings estimate up 21.3% in last 90 days
2023 estimate up 10.0% in the last 90 days
Earnings ESP for March 2021 quarters 0.0% (Earnings report date Jun 2)
Shares are up 52.7% year to date

KB Home (KBH Quick QuoteKBH - Free Report)

One of California’s largest homebuilders, KB Home focuses on attached and detached single-family homes, town homes and condominiums on acquired or developed lands. It targets first time, move-up and active adult home buyers.

Zacks Rank #1
Value Score A
Growth Score B
Momentum Score C
Industry: Building Products - Home Builders (top 24%)
2021 revenue and earnings growth 43.6% and 74.8%, respectively
2021 earnings estimate up 28.1% in last 90 days
2022 estimate up 26.6% in the last 90 days
Earnings ESP for March 2021 quarter 7.47% (Earnings report date Jun 23)
Shares are up 46.4% year to date

Dillards, Inc. (DDS Quick QuoteDDS - Free Report)

Dillards is a large departmental store chain featuring fashion apparel and home furnishings with 250 namesake outlets and 32 clearance centers across 29 states.

Zacks Rank #2
Value Score A
Growth Score A
Momentum Score D
Industry: Retail - Regional Department Stores (top 21%)
2022 (ending Jan) revenue and earnings growth 27.5% and 200.0%, respectively
2022 earnings estimate up 33.2% in last 90 days
2023 estimate up 147.7% in the last 90 days
Earnings ESP for March 2021 quarter 6.49% (Earnings report date Jun 23)
Shares are up 60.2% year to date

HCA Healthcare, Inc. (HCA Quick QuoteHCA - Free Report)
 

HCA is the largest non-governmental operator of acute care hospitals in the U.S. with 185 hospitals including 178 general, five psychiatric and two rehabilitation hospitals. It also operates 121 freestanding surgery centers and 21 freestanding endoscopy centers. Its business is spread across 20 states and England.

Zacks Rank #2
Value Score B
Growth Score B
Momentum Score F
Industry: Medical - Hospital (top 21%)
2021 revenue and earnings growth 6.1% and 15.9%, respectively
2021 earnings estimate up 6.3% in last 90 days
2022 estimate up 10.3% in the last 90 days
Earnings ESP for March 2021 quarter 6.97% (Earnings report date Apr 22)
Shares are up 16.6% year to date


5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>