The Q3 earnings season is peaking at the moment with majority of the S&P 500 members set to complete reporting by the end of this week (84.2% of the index’s total membership). Notably, after consecutive five quarters of decline, earnings are finally back into the positive territory.

As per the latest Zacks Earnings Preview report, overall third-quarter earnings for S&P 500 companies are anticipated to be up by 2.0% (compared to an earlier estimate of +1.4%) from the year-ago quarter on revenues that are estimated to increase 1.4%.

The growth is expected to be driven by solid results from the Finance sector, driven by robust performance from big names like J.P. Morgan and Goldman Sachs. Finance’s impressive show is anticipated to mitigate sluggish growth from the Energy, Autos, Transportation as well as Technology sector.

Meanwhile, the Business Services sector is looking reasonably good. We now have third-quarter results from 81.8% of the sector’s total market capitalization in the S&P 500 index. So far, total earnings are surging 17.2% year over year on 7.9% higher revenues, with 88.2% beating EPS estimates and 58.8% beating revenue expectations.

For the sector, earnings are anticipated to grow 15.3%, while revenues are touted to rise 8.6% over last year. On that note, let’s take a look at three outsourcing stocks – part of the broader Business Services sector – that are expected to release their results on Nov 2.

Automatic Data Processing Inc. (ADP Quick QuoteADP - Free Report) is unlikely to beat first-quarter fiscal 2017 earnings estimates as it has an unfavorable combination of a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Automatic Data Processing holds a dominant position in the payroll processing and human capital management market, primarily due to its robust product portfolio. We believe that the company’s higher revenue per client and a decent customer retention ratio place it in an advantageous position.

However, in the past, the company has witnessed some negative impact on its retention rate owing to migration from the legacy business and increasing competition in the sphere. Furthermore, we expect the company’s investments in its new initiatives to weigh on its upcoming quarterly earnings.

We note that Automatic Data Processing’s results compared favorably with the Zacks Consensus Estimate in three of the last four quarters, with an average positive surprise of 2.04%.

Genpact Limited (G Quick QuoteG - Free Report) too is unlikely to beat third-quarter 2016 earnings estimates as it has an unfavorable combination of a Zacks Rank #2 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aggressive investments on improving capabilities, client-facing teams and rigorous training are expected to expand client-base, which will drive top-line growth. Genpact’s results will continue to be backed by the core global client BPO business that has gained significant traction in providing consulting, digital and analytical services.

However, challenges in the healthcare and investment banking verticals are concerns. Further, adverse foreign currency exchange rate volatility is a concern as the company lowered its full-year 2016 revenue guidance citing $41 million impact.

Notably, Genpact’s results have beaten the Zacks Consensus Estimate in the trailing four quarters with an average positive surprise of 9.56%.

TeleTech Holdings Inc. (TTEC Quick QuoteTTEC - Free Report) is set to report third-quarter 2016 results. The company provides customer engagement management solutions to customers across the United States, Philippines, Latin America, Europe, Middle East, Africa, Asia Pacific, and Canada.

TeleTech has an Earnings ESP of 0.00% and carries a Zacks Rank #3. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Foreign exchange rate volatility is anticipated to continue to hurt top-line growth. Moreover, revenue growth is expected to remain sluggish in the Customer Management Services and Customer Technology Services which will impact overall growth.

We note that TeleTech’s results compared unfavorably with the Zacks Consensus Estimate in three of the last four quarters, with an average negative surprise of 14.33%.

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