Back to top

Image: Bigstock

Can Fifth Third Bancorp (FITB) Keep the Earnings Streak Alive This Quarter?

Read MoreHide Full Article

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Fifth Third Bancorp (FITB - Free Report) , a firm in the Banks - Major Regional industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, FITB has beaten estimates by at least 5% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, FITB expected to post earnings of 37 cents per share, while it actually produced earnings of 40 cents per share, a beat of 8.1%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 41 cents per share, when it actually posted earnings of 65 cents per share instead, representing a 58.5% positive surprise.

Fifth Third Bancorp Price and EPS Surprise

 

Fifth Third Bancorp Price and EPS Surprise | Fifth Third Bancorp Quote

Thanks in part to this history, recent estimates have been moving higher for Fifth Third Bancorp. In fact, the Earnings ESP for FITB is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for FITB, as the firm currently has a Zacks Earnings ESP of 2.33%, so another beat could be around the corner.

This is particularly true when you consider that FITB has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70%of the time, so it seems pretty likely that FITB could see another beat at its next report, especially if recent trends are any guide.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold.  Be among the very first to see them >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fifth Third Bancorp (FITB) - free report >>

Published in