We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Brown & Brow, Halliburton, Chipotle Mexican Grill, Enphase Energy and Hubbell
Read MoreHide Full Article
For Immediate Release
Chicago, IL – October 25, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Brown & Brown Inc. (BRO - Free Report) , Halliburton Co. (HAL - Free Report) , Chipotle Mexican Grill Inc. (CMG - Free Report) , Enphase Energy Inc. (ENPH - Free Report) and Hubbell Inc. (HUBB - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Top 5 Large-Cap Stocks Set to Beat on Q3 Earnings
The third-quarter 2022 earnings season is gaining pace, with more than 650 companies slated to release their financial numbers this week. This reporting cycle will be of immense importance as U.S. corporations are facing severe challenges on the back of record-high inflation, an extremely hawkish Fed and threats of a recession.
In addition to revenues and net profit numbers of companies, several metrics of margins, like gross margin, operating margin and net margin will be closely monitored by market participants. Moreover, the outlook of U.S. corporations will indicate, to a great extent, the health of the U.S. and global economy.
We have identified five large-cap stocks with a favorable Zacks Rank that are set to beat on third-quarter earnings. Investment in these stocks should be fruitful as an earnings beat is expected to drive stock prices going forward. These companies are — Brown & Brown Inc., Halliburton Co., Chipotle Mexican Grill Inc., Enphase Energy Inc. and Hubbell Inc..
Q3 at a Glance
Like the first half, the third quarter of 2022 also remained tough for the U.S. economy. Various measures of inflation remained elevated at a 40-year high. The Fed has hiked the benchmark interest rate by 3% so far in 2022. The interest rate was in the range of 3.25% to 3.5% at the end of the third quarter. Moreover, the central bank has started to reduce the size of its $9 trillion balance sheet systematically since June.
Despite these aggressive monetary policies adopted by the Fed, inflation is showing no signs of declining. The complete devastation of the global supply-chain system and the shortage of labor continued to put pressure on businesses in the form of higher input costs and wages.
The lingering war between Russia and Ukraine and the lockdown in China due to the resurgence of COVID-19 infections were the major hindrances to the restoration of the global supply-chain system. Agencies like the IMF, the World Bank and the OECD have warned of a possible global recession in 2023.
Q3 Earnings Results So Far
Our estimates for third-quarter earnings of the market's benchmark, the S&P 500 Index, has shown a gradual decline in the past three and a half months. As of Oct 21, 99 companies of the S&P 500 Index have reported results.
Total earnings of these companies are down 4% from the same period last year on 7.3% higher revenues, with 76.8% beating EPS estimates and 64.6% beating revenue estimates. Our current estimate has projected that total earnings of the S&P 500 Index are expected to be up 0.9% year over year on 9.1% higher revenues.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Brown & Brown has a compelling portfolio along with an impressive growth trajectory driven by organic and inorganic initiatives across all its segments. Buyouts and collaborations enhanced Brown & Brown's existing capabilities and extended its geographic foothold.
Strategic efforts continue to drive commission and fees. BRO's sturdy performance has driven cash flow, enabling it to deploy capital in shareholder-friendly moves. BRO boasts a strong balance sheet backed by a solid cash position.
BRO has an Earnings ESP of +0.99%. It has an expected earnings growth rate of 5.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 30 days.
Brown & Brown recorded earnings surprises in the last four reported quarters, with an average beat of 7.5%. The company is set to release earnings results on Oct 24, after the closing bell.
Halliburton provides products and services to the energy industry worldwide. High commodity prices have increased demand for HAL's services in North America, to which it is heavily exposed.
In particular, Halliburton's key Completion & Production unit margins are likely to improve, with management expecting better pricing leverage going forward. Besides, Halliburton's strong free cash flow generating ability indicates its financial strength.
Its healthy relationship with national oil companies and digitization efforts also bode well. The increasing cloud-based data flow between sites and back office translates into expanded margins for Halliburton.
HAL has an Earnings ESP of +1.13%. It has an expected earnings growth rate of 88% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1% over the last 30 days.
Halliburton recorded earnings surprises in two out of the last four reported quarters, with an average beat of 3.7%. The company is set to release earnings results on Oct 25, before the opening bell.
Chipotle Mexican Grill operates quick-casual and fresh Mexican food restaurant chains globally. CMG has been benefiting from its digital efforts, Chipotlane add-ons and marketing initiatives. These, along with strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margins have been aiding Chipotle.
Also, a solid financial position with no debt is encouraging. CMG continues to focus on the stage gate process, and leverages digital programs to expand access as well as convenience.
CMG has an Earnings ESP of +2.04%. It has an expected earnings growth rate of 28.1% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 30 days.
Chipotle Mexican Grill recorded earnings surprises in the last four reported quarters, with an average beat of 6.2%. The company is set to release earnings results on Oct 25, after the closing bell.
Enphase Energy has revolutionized the solar industry by pioneering a semiconductor-based microinverter, which converts energy at the individual solar module level. ENPH enjoys a strong position as a leading U.S. manufacturer of microinverters.
Enphase Energy is striving to expand in Europe steadily throughout 2022. Such expansion plans may boost its long-term growth in the battery storage market. ENPH has also been making acquisitions to boost its long-term growth. It holds a strong solvency position.
ENPH has an Earnings ESP of +0.31%. It has an expected earnings growth rate of 70.1% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 30 days.
Enphase Energy recorded earnings surprises in the last four reported quarters, with an average beat of 24.5%. The company is set to release earnings results on Oct 25, after the closing bell.
Hubbell is engaged in the design, manufacture and sale of electrical and electronic products to commercial, industrial, utility and telecommunications markets. HUBB's products include plugs, receptacles, connectors, lighting fixtures, high voltage test and measurement equipment and voice and data signal processing components. Hubbell operates through two segments — Electrical Solution and Utility Solution.
HUBB has an Earnings ESP of +2.50%. It has an expected earnings growth rate of 23.4% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1% over the last seven days.
Hubbell recorded earnings surprises in two out of the last four reported quarters, with an average beat of 6.9%. The company is set to release earnings results on Oct 25, before the opening bell.
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Brown & Brow, Halliburton, Chipotle Mexican Grill, Enphase Energy and Hubbell
For Immediate Release
Chicago, IL – October 25, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Brown & Brown Inc. (BRO - Free Report) , Halliburton Co. (HAL - Free Report) , Chipotle Mexican Grill Inc. (CMG - Free Report) , Enphase Energy Inc. (ENPH - Free Report) and Hubbell Inc. (HUBB - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Top 5 Large-Cap Stocks Set to Beat on Q3 Earnings
The third-quarter 2022 earnings season is gaining pace, with more than 650 companies slated to release their financial numbers this week. This reporting cycle will be of immense importance as U.S. corporations are facing severe challenges on the back of record-high inflation, an extremely hawkish Fed and threats of a recession.
In addition to revenues and net profit numbers of companies, several metrics of margins, like gross margin, operating margin and net margin will be closely monitored by market participants. Moreover, the outlook of U.S. corporations will indicate, to a great extent, the health of the U.S. and global economy.
We have identified five large-cap stocks with a favorable Zacks Rank that are set to beat on third-quarter earnings. Investment in these stocks should be fruitful as an earnings beat is expected to drive stock prices going forward. These companies are — Brown & Brown Inc., Halliburton Co., Chipotle Mexican Grill Inc., Enphase Energy Inc. and Hubbell Inc..
Q3 at a Glance
Like the first half, the third quarter of 2022 also remained tough for the U.S. economy. Various measures of inflation remained elevated at a 40-year high. The Fed has hiked the benchmark interest rate by 3% so far in 2022. The interest rate was in the range of 3.25% to 3.5% at the end of the third quarter. Moreover, the central bank has started to reduce the size of its $9 trillion balance sheet systematically since June.
Despite these aggressive monetary policies adopted by the Fed, inflation is showing no signs of declining. The complete devastation of the global supply-chain system and the shortage of labor continued to put pressure on businesses in the form of higher input costs and wages.
The lingering war between Russia and Ukraine and the lockdown in China due to the resurgence of COVID-19 infections were the major hindrances to the restoration of the global supply-chain system. Agencies like the IMF, the World Bank and the OECD have warned of a possible global recession in 2023.
Q3 Earnings Results So Far
Our estimates for third-quarter earnings of the market's benchmark, the S&P 500 Index, has shown a gradual decline in the past three and a half months. As of Oct 21, 99 companies of the S&P 500 Index have reported results.
Total earnings of these companies are down 4% from the same period last year on 7.3% higher revenues, with 76.8% beating EPS estimates and 64.6% beating revenue estimates. Our current estimate has projected that total earnings of the S&P 500 Index are expected to be up 0.9% year over year on 9.1% higher revenues.
Our Top Picks
Five large-cap companies will report third-quarter 2022 earnings within the next two days. Each of these stocks carries a Zacks Rank #2 (Buy) and has a positive Earnings ESP. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Brown & Brown has a compelling portfolio along with an impressive growth trajectory driven by organic and inorganic initiatives across all its segments. Buyouts and collaborations enhanced Brown & Brown's existing capabilities and extended its geographic foothold.
Strategic efforts continue to drive commission and fees. BRO's sturdy performance has driven cash flow, enabling it to deploy capital in shareholder-friendly moves. BRO boasts a strong balance sheet backed by a solid cash position.
BRO has an Earnings ESP of +0.99%. It has an expected earnings growth rate of 5.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 30 days.
Brown & Brown recorded earnings surprises in the last four reported quarters, with an average beat of 7.5%. The company is set to release earnings results on Oct 24, after the closing bell.
Halliburton provides products and services to the energy industry worldwide. High commodity prices have increased demand for HAL's services in North America, to which it is heavily exposed.
In particular, Halliburton's key Completion & Production unit margins are likely to improve, with management expecting better pricing leverage going forward. Besides, Halliburton's strong free cash flow generating ability indicates its financial strength.
Its healthy relationship with national oil companies and digitization efforts also bode well. The increasing cloud-based data flow between sites and back office translates into expanded margins for Halliburton.
HAL has an Earnings ESP of +1.13%. It has an expected earnings growth rate of 88% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1% over the last 30 days.
Halliburton recorded earnings surprises in two out of the last four reported quarters, with an average beat of 3.7%. The company is set to release earnings results on Oct 25, before the opening bell.
Chipotle Mexican Grill operates quick-casual and fresh Mexican food restaurant chains globally. CMG has been benefiting from its digital efforts, Chipotlane add-ons and marketing initiatives. These, along with strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margins have been aiding Chipotle.
Also, a solid financial position with no debt is encouraging. CMG continues to focus on the stage gate process, and leverages digital programs to expand access as well as convenience.
CMG has an Earnings ESP of +2.04%. It has an expected earnings growth rate of 28.1% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 30 days.
Chipotle Mexican Grill recorded earnings surprises in the last four reported quarters, with an average beat of 6.2%. The company is set to release earnings results on Oct 25, after the closing bell.
Enphase Energy has revolutionized the solar industry by pioneering a semiconductor-based microinverter, which converts energy at the individual solar module level. ENPH enjoys a strong position as a leading U.S. manufacturer of microinverters.
Enphase Energy is striving to expand in Europe steadily throughout 2022. Such expansion plans may boost its long-term growth in the battery storage market. ENPH has also been making acquisitions to boost its long-term growth. It holds a strong solvency position.
ENPH has an Earnings ESP of +0.31%. It has an expected earnings growth rate of 70.1% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 30 days.
Enphase Energy recorded earnings surprises in the last four reported quarters, with an average beat of 24.5%. The company is set to release earnings results on Oct 25, after the closing bell.
Hubbell is engaged in the design, manufacture and sale of electrical and electronic products to commercial, industrial, utility and telecommunications markets. HUBB's products include plugs, receptacles, connectors, lighting fixtures, high voltage test and measurement equipment and voice and data signal processing components. Hubbell operates through two segments — Electrical Solution and Utility Solution.
HUBB has an Earnings ESP of +2.50%. It has an expected earnings growth rate of 23.4% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1% over the last seven days.
Hubbell recorded earnings surprises in two out of the last four reported quarters, with an average beat of 6.9%. The company is set to release earnings results on Oct 25, before the opening bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.