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2 Stocks to Consider Buying Before Earnings Next Week
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Several top-rated stocks are set to report earnings next week from a variety of different sectors and investors may want to consider buying them beforehand.
Here are two stocks to keep an eye on before their Q4 reports next week that can also help diversify the portfolio.
Investors will want to keep an eye on Mondelez International (MDLZ - Free Report) which is set to report Q4 earnings on January 31.
Mondelez International’s Food-Miscellaneous Industry is currently in the top 24% of over 250 Zacks Industries. The provider of chocolates, cookies, gum, and candy among other snacks has seen earnings estimates rise for its current fiscal year 2022 and FY23.
In correlation with such, MDLZ stock sports a Zacks Rank #2 (Buy) going into its fourth-quarter release.
Image Source: Zacks Investment Research
Q4 Preview: Mondelez’s fourth-quarter earnings estimates of $0.71 a share is on par with Q4 2021. This would round out Mondelez International’s fiscal 2022 EPS at $2.94, up 2% from FY21.
Sales for Q4 are projected at $8.37 billion, up 9% from the prior year quarter. Total sales for FY22 would be $31.26 billion, also up 9% from 2021.
Image Source: Zacks Investment Research
Earnings ESP: The Zacks Expected Surprise Prediction does indicate that Mondelez International could slightly miss on its bottom line during Q4 with the Most Accurate Estimate at $0.70 a share and the Zacks Consensus at $0.71 per share.
Image Source: Zacks Investment Research
Takeaway: Despite the possibility of slightly missing earnings expectations, the rising earnings estimates for FY23 make MDLZ stock look attractive and could perhaps lead to the company raising its guidance for the year.
If the company does miss earnings expectations, the possibility of a stronger outlook should still help Mondelez International’s stock rally. However, a slight selloff could make the stock even more attractive for longer-term investors, with MDLZ trading at 20.9X forward earnings which is nicely below its decade high of 26.2X and slightly beneath the median of 21.2X.
Also reporting on January 31 is RenaissanceRe Holdings. RenaissanceRe is a provider of property-catastrophe reinsurance to insurers and reinsurers globally and is part of the Finance sector.
Renaissance also provides specialty reinsurance on accident, health, aviation, and satellite concerns, along with homeowner’s insurance in various parts of the U.S.
Renaissance stock lands a Zacks Rank #2 (Buy) with earnings estimate revisions trending higher again for fiscal 2022 and rising for FY23 as well. Even better, fourth-quarter earnings estimates have climbed 73% over the quarter.
Image Source: Zacks Investment Research
Q4 Preview: Renaissance stock is standing out at the moment as earnings are now expected to be $6.58 a share for Q4 which would be 40% leap from Q4 2021 EPS of $4.71 per share. This would round out fiscal year 2022 with EPS of $6.41 an outstanding 272% increase from $1.72 a share in FY21 which also shows the insurace giant is on a path to a post-pandemic recovery.
On the top line, sales are expected at $1.82 billion up 27% from the prior year quarter. Total sales for FY22 would be $6.88 billion, 25% YoY growth with sales at $5.53 billion in 2021.
Image Source: Zacks Investment Research
Earnings ESP: With the Most Accurate Consensus also at $6.58 per share Renaissance is expected to reach its Q4 expectations.
Image Source: Zacks Investment Research
Takeaway: With earnings estimate revisions significantly trending higher for Q4 over the last 90 days, RNR is definitely a stock to keep an eye on.
While there is no earnings surprise expected it would not be shocking if the company were able to top expectations considering the immense climb in Q4 estimates and an earnings beat could lead to higher highs for RNR stock.
Bottom Line
Both Mondelez International and RenassanceRe Holdings stock look intriguing going into their Q4 reports next week as rising earnings estimate revisions for FY23 are a good sign that these companies could offer positive guidance.
This may be able to support their stocks even if Q4 earnings come up short. However, If they can beat expectations and also provide a better-than-expected outlook there could certainly be more upside in MDLZ and RNR stock.
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2 Stocks to Consider Buying Before Earnings Next Week
Several top-rated stocks are set to report earnings next week from a variety of different sectors and investors may want to consider buying them beforehand.
Here are two stocks to keep an eye on before their Q4 reports next week that can also help diversify the portfolio.
Mondelez International (MDLZ - Free Report)
Investors will want to keep an eye on Mondelez International (MDLZ - Free Report) which is set to report Q4 earnings on January 31.
Mondelez International’s Food-Miscellaneous Industry is currently in the top 24% of over 250 Zacks Industries. The provider of chocolates, cookies, gum, and candy among other snacks has seen earnings estimates rise for its current fiscal year 2022 and FY23.
In correlation with such, MDLZ stock sports a Zacks Rank #2 (Buy) going into its fourth-quarter release.
Image Source: Zacks Investment Research
Q4 Preview: Mondelez’s fourth-quarter earnings estimates of $0.71 a share is on par with Q4 2021. This would round out Mondelez International’s fiscal 2022 EPS at $2.94, up 2% from FY21.
Sales for Q4 are projected at $8.37 billion, up 9% from the prior year quarter. Total sales for FY22 would be $31.26 billion, also up 9% from 2021.
Image Source: Zacks Investment Research
Earnings ESP: The Zacks Expected Surprise Prediction does indicate that Mondelez International could slightly miss on its bottom line during Q4 with the Most Accurate Estimate at $0.70 a share and the Zacks Consensus at $0.71 per share.
Image Source: Zacks Investment Research
Takeaway: Despite the possibility of slightly missing earnings expectations, the rising earnings estimates for FY23 make MDLZ stock look attractive and could perhaps lead to the company raising its guidance for the year.
If the company does miss earnings expectations, the possibility of a stronger outlook should still help Mondelez International’s stock rally. However, a slight selloff could make the stock even more attractive for longer-term investors, with MDLZ trading at 20.9X forward earnings which is nicely below its decade high of 26.2X and slightly beneath the median of 21.2X.
RenaissanceRe Holdings (RNR - Free Report)
Also reporting on January 31 is RenaissanceRe Holdings. RenaissanceRe is a provider of property-catastrophe reinsurance to insurers and reinsurers globally and is part of the Finance sector.
Renaissance also provides specialty reinsurance on accident, health, aviation, and satellite concerns, along with homeowner’s insurance in various parts of the U.S.
Renaissance stock lands a Zacks Rank #2 (Buy) with earnings estimate revisions trending higher again for fiscal 2022 and rising for FY23 as well. Even better, fourth-quarter earnings estimates have climbed 73% over the quarter.
Image Source: Zacks Investment Research
Q4 Preview: Renaissance stock is standing out at the moment as earnings are now expected to be $6.58 a share for Q4 which would be 40% leap from Q4 2021 EPS of $4.71 per share. This would round out fiscal year 2022 with EPS of $6.41 an outstanding 272% increase from $1.72 a share in FY21 which also shows the insurace giant is on a path to a post-pandemic recovery.
On the top line, sales are expected at $1.82 billion up 27% from the prior year quarter. Total sales for FY22 would be $6.88 billion, 25% YoY growth with sales at $5.53 billion in 2021.
Image Source: Zacks Investment Research
Earnings ESP: With the Most Accurate Consensus also at $6.58 per share Renaissance is expected to reach its Q4 expectations.
Image Source: Zacks Investment Research
Takeaway: With earnings estimate revisions significantly trending higher for Q4 over the last 90 days, RNR is definitely a stock to keep an eye on.
While there is no earnings surprise expected it would not be shocking if the company were able to top expectations considering the immense climb in Q4 estimates and an earnings beat could lead to higher highs for RNR stock.
Bottom Line
Both Mondelez International and RenassanceRe Holdings stock look intriguing going into their Q4 reports next week as rising earnings estimate revisions for FY23 are a good sign that these companies could offer positive guidance.
This may be able to support their stocks even if Q4 earnings come up short. However, If they can beat expectations and also provide a better-than-expected outlook there could certainly be more upside in MDLZ and RNR stock.