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Cooper Tire (CTB) Q2 Earnings May Beat: Stock to Gain?
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Cooper Tire & Rubber Co. is set to report second-quarter 2016 results on Aug 4. In the last quarter, this tire manufacturer posted a positive earnings surprise of 5%. Let us see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Cooper Tire is likely to beat earnings this quarter because it has the right combination of the two key components.
Zacks ESP:Earnings ESP for Cooper Tire is currently pegged at +7.48% as the Most Accurate estimate of $1.15 stands above the Zacks Consensus Estimate of $1.07. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise.
Zacks Rank: Cooper Tire carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings. Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The combination of Cooper Tire’s Zacks Rank #3 and positive ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-than-Expected Earnings?
Cooper Tire continues to develop great products with superior design and functionality, which will satisfy the market demand in all regions. The company expects its improving product mix to expand profitability.
Meanwhile, Cooper Tire has been focusing on expansion in Latin America. In Jan 2016, it announced the opening of a new sales office in São Paulo, Brazil to expand its business in the Latin American market. This will help the company to enter into new markets in the region as well as enhance its business in the existing markets.
Stocks to Consider
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Westport Fuel Systems Inc. (WPRT - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Aug 3.
Metaldyne Performance Group Inc. has an Earnings ESP of +3.57% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Aug 4.
Magna International Inc. (MGA - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Aug 5.
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Cooper Tire (CTB) Q2 Earnings May Beat: Stock to Gain?
Cooper Tire & Rubber Co. is set to report second-quarter 2016 results on Aug 4. In the last quarter, this tire manufacturer posted a positive earnings surprise of 5%. Let us see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Cooper Tire is likely to beat earnings this quarter because it has the right combination of the two key components.
Zacks ESP: Earnings ESP for Cooper Tire is currently pegged at +7.48% as the Most Accurate estimate of $1.15 stands above the Zacks Consensus Estimate of $1.07. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise.
Zacks Rank: Cooper Tire carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings. Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The combination of Cooper Tire’s Zacks Rank #3 and positive ESP makes us reasonably confident of an earnings beat.
COOPER TIRE Price and EPS Surprise
COOPER TIRE Price and EPS Surprise | COOPER TIRE Quote
What is Driving the Better-than-Expected Earnings?
Cooper Tire continues to develop great products with superior design and functionality, which will satisfy the market demand in all regions. The company expects its improving product mix to expand profitability.
Meanwhile, Cooper Tire has been focusing on expansion in Latin America. In Jan 2016, it announced the opening of a new sales office in São Paulo, Brazil to expand its business in the Latin American market. This will help the company to enter into new markets in the region as well as enhance its business in the existing markets.
Stocks to Consider
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Westport Fuel Systems Inc. (WPRT - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Aug 3.
Metaldyne Performance Group Inc. has an Earnings ESP of +3.57% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Aug 4.
Magna International Inc. (MGA - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Aug 5.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>