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Tesla, O'Reilly, CarMax, Target and Home Depot are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – May 17, 2021 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Tesla, Inc. (TSLA - Free Report) , O’Reilly Automotive, Inc. (ORLY - Free Report) , CarMax, Inc. (KMX - Free Report) , Target Corporation (TGT - Free Report) and The Home Depot, Inc. (HD - Free Report) .
Revved Up Auto Sector Earnings Outlook
We shared with you last week the unprecedented earnings boom enjoyed by the Construction sector. But the Construction sector is hardly alone in that respect, as you will see in the details of the Zacks Auto sector.
The Zacks Auto sector encompasses the original equipment manufacturers, both domestic and foreign, plus parts suppliers and tiremakers. Electric vehicle operators like Tesla and its competitors are also housed here. The automobile dealerships like O’Reilly and CarMax are not included here, but rather part of the Zacks Retail sector. Those automobile retailers have been raking it in lately as well.
Profitability of the Zacks Auto sector suffered last year as the pandemic had a debilitating effect on the group’s operations. But the group’s earnings were on a downtrend in the pre-pandemic period as well, as it was coming off four years of record earnings in the 2015 – 2018 period.
The Zacks Auto sector is currently expected to earn $21.1 billion in aggregate earnings this year, up +43.8% from the 2020 level and a new all-time record for the group. But this isn’t a one-off growth spurt, as the sector’s 2022 and 2023 earnings are expected to be new records in their own rights.
The Q1 earnings season has come to an end for the Zacks Auto sector. Total Q1 earnings for the sector were up +608.9% from the same period last year on +11% higher revenues, with 87.5% beating EPS estimates and the same proportion beating revenue estimates.
The outsized Q1 earnings growth is primarily a function of easy comparisons, as the final month of the year-earlier period was disrupted by the Covid lockdowns, which carried into 2020 Q2 when the sector as a whole lost money.
These stocks have pulled back significantly since February, but that came after a rip-roaring performance, with the sector as a whole still up almost twice as much as the S&P 500 index over the past year (+87.9% vs. +46%).
It is reasonable to expect the group to find its footing soon given the very strong profitability outlook.
Q1 Earnings Season Scorecard (As of Friday, May 14th)
We now have Q1 results from 458 S&P 500 members or 91.6% of the index’s total membership. Total earnings (or aggregate net income) for these 458 companies are up +46.4% from the same period last year on +9.5% higher revenues, with 86% beating EPS and 76.6% beating revenue estimates.
The reporting cycle starts winding down for these large-cap companies going forward, with about 200 companies on deck to report Q1 results, including 18 S&P 500 members. Target,Home Depot and others are some of the notable companies reporting results this week.
The two sets of comparison charts below put the Q1 results from these 458 index members in a historical context, which should give us a sense how the Q1 earnings season is tracking at this stage relative to other recent periods.
The growth comparison is likely not fair, given the unusually high year-over-year growth rates in the Finance sector, a function of big reserve releases and easy comparisons in 2021 Q1. On an ex-Finance basis, the Q1 earnings growth for the remaining companies that have reported results drops to only +34.1%.
But even on an ex-Finance basis, the Q1 earnings growth rate still compares favorably to other recent periods.
Overall Expectations for 2021 Q1
Looking at Q1 as a whole, combining the actual results that have come out with estimates for the still to come companies, total earnings for the S&P 500 index are expected to up +46.7% on +9.5% higher revenues. In other words, the remaining 42 index members still-to-report Q1 results aren’t expected to move the growth needle in any significant way.
We envision a favorable revisions trend to accelerate over the next few months as the vaccination effort reaches a critical mass and greater ‘normalcy’ returns to life.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Earnings Estimates Keep Going Up
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Tesla, O'Reilly, CarMax, Target and Home Depot are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – May 17, 2021 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Tesla, Inc. (TSLA - Free Report) , O’Reilly Automotive, Inc. (ORLY - Free Report) , CarMax, Inc. (KMX - Free Report) , Target Corporation (TGT - Free Report) and The Home Depot, Inc. (HD - Free Report) .
Revved Up Auto Sector Earnings Outlook
We shared with you last week the unprecedented earnings boom enjoyed by the Construction sector. But the Construction sector is hardly alone in that respect, as you will see in the details of the Zacks Auto sector.
The Zacks Auto sector encompasses the original equipment manufacturers, both domestic and foreign, plus parts suppliers and tiremakers. Electric vehicle operators like Tesla and its competitors are also housed here. The automobile dealerships like O’Reilly and CarMax are not included here, but rather part of the Zacks Retail sector. Those automobile retailers have been raking it in lately as well.
Profitability of the Zacks Auto sector suffered last year as the pandemic had a debilitating effect on the group’s operations. But the group’s earnings were on a downtrend in the pre-pandemic period as well, as it was coming off four years of record earnings in the 2015 – 2018 period.
The Zacks Auto sector is currently expected to earn $21.1 billion in aggregate earnings this year, up +43.8% from the 2020 level and a new all-time record for the group. But this isn’t a one-off growth spurt, as the sector’s 2022 and 2023 earnings are expected to be new records in their own rights.
The Q1 earnings season has come to an end for the Zacks Auto sector. Total Q1 earnings for the sector were up +608.9% from the same period last year on +11% higher revenues, with 87.5% beating EPS estimates and the same proportion beating revenue estimates.
The outsized Q1 earnings growth is primarily a function of easy comparisons, as the final month of the year-earlier period was disrupted by the Covid lockdowns, which carried into 2020 Q2 when the sector as a whole lost money.
These stocks have pulled back significantly since February, but that came after a rip-roaring performance, with the sector as a whole still up almost twice as much as the S&P 500 index over the past year (+87.9% vs. +46%).
It is reasonable to expect the group to find its footing soon given the very strong profitability outlook.
Q1 Earnings Season Scorecard (As of Friday, May 14th)
We now have Q1 results from 458 S&P 500 members or 91.6% of the index’s total membership. Total earnings (or aggregate net income) for these 458 companies are up +46.4% from the same period last year on +9.5% higher revenues, with 86% beating EPS and 76.6% beating revenue estimates.
The reporting cycle starts winding down for these large-cap companies going forward, with about 200 companies on deck to report Q1 results, including 18 S&P 500 members. Target,Home Depot and others are some of the notable companies reporting results this week.
The two sets of comparison charts below put the Q1 results from these 458 index members in a historical context, which should give us a sense how the Q1 earnings season is tracking at this stage relative to other recent periods.
The growth comparison is likely not fair, given the unusually high year-over-year growth rates in the Finance sector, a function of big reserve releases and easy comparisons in 2021 Q1. On an ex-Finance basis, the Q1 earnings growth for the remaining companies that have reported results drops to only +34.1%.
But even on an ex-Finance basis, the Q1 earnings growth rate still compares favorably to other recent periods.
Overall Expectations for 2021 Q1
Looking at Q1 as a whole, combining the actual results that have come out with estimates for the still to come companies, total earnings for the S&P 500 index are expected to up +46.7% on +9.5% higher revenues. In other words, the remaining 42 index members still-to-report Q1 results aren’t expected to move the growth needle in any significant way.
We envision a favorable revisions trend to accelerate over the next few months as the vaccination effort reaches a critical mass and greater ‘normalcy’ returns to life.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Earnings Estimates Keep Going Up
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.