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Ahead of Wall Street

Monday, August 4, 2014

(This is Mark Vickery covering for Sheraz Mian, who is off today.)

After the market sell-off last week, the S&P 500 is now down 3% from its rally-highs a month ago. A Goldilocks jobs report, which is not now expected to sway the Fed into any new drastic policy changes, was a bit of good news Friday, even though the S&P was hit by a mid-day swoon it wouldn’t quite recover from.

Solid Q2 earnings across most sectors this season justified the long run-up in the stock market, and we had been expecting stronger quarterly data. Now that earnings strength is being realized, it’s time to harvest some of that growth — thus the market was down last week. Add in plenty of instability in various regions around the globe — Argentina, Ukraine, Gaza — and it’s become a good time to take a breather.

Every good investor knows no gravy train lasts forever. And the key to the next big leg up, when it happens, will be what’s establishing itself now; guidance for Q3 and beyond is and will continue to be key.

If a stock is currently a Zacks Rank #1, chances are it outperformed in its most recent quarter and guided higher for the next quarter and fiscal year. Here are three Zacks Rank #1 stocks with upwardly revised analyst estimates, and whether they are up or down over the past month:

  • Con-way (CNW - Snapshot Report) — upwardly revised for Q3, Q4, FY14 and FY15; down 2.6%
  • Capital One (COF - Analyst Report) — upwardly revised for Q3, Q4, FY14 and FY15; down 6.4%
  • First Solar (FSLR) — upwardly revised for FY14; down 10.75%

Elsewhere this morning, Amgen (AMGN - Analyst Report) reported positive late-stage data on Kyprolis, a treatment for relapsed multiple myeloma. Shares of this Zacks Rank #3 company are up 3.5% in today’s pre-market.

Mark Vickery
Senior Editor

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