We are in the middle of fourth-quarter 2016 earnings season and growth is likely to be at best in eight quarters. In fact, fourth-quarter earnings season is poised to witness one of the notable improvements in the entire corporate earnings scenario.

Per our Earnings Outlook report as of Feb 1, 2017, earnings for the total S&P 500 companies will improve 6.0% from the year-ago period, with total revenue rising to 3.9%. This follows 3.7% earnings growth and 2.2% rise in revenues witnessed in the third quarter after five straight quarters of earnings decline.

As per the report, out of the 219 S&P 500 companies that have come up with their quarterly numbers, approximately 64.8% posted positive earnings surprises, while 53.4% beat the top-line expectations. Total earnings for these index members were up 5.4% from the year-ago quarter, while revenues increased 3.5%.

The performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, four are expected to witness an earnings decline in the fourth quarter. Of these, Autos, Transportation and Conglomerates are likely to be a major drag.

Total earnings for the Consumer Staples sector are estimated to rise 9.6%, while revenues are projected to improve 4.1%. So, let’s see what awaits the following Consumer Staples stocks that are queued up for earnings releases on Feb 3.

Consumer goods behemoth, The Clorox Company (CLX Quick QuoteCLX - Free Report) has outperformed the Zacks Consensus Estimate by an average of 3.2% in the trailing four quarters.

Our proven model shows that the company is likely to beat earnings estimates in second-quarter fiscal 2017. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Clorox Company has an Earnings ESP of +0.82% as the Most Accurate estimate stands at $1.23, while the Zacks Consensus Estimate is pegged at $1.22. Moreover, the company carries a Zacks Rank #3, making us reasonably confident of an earnings beat.

The company remains keen on improving the demand for its products by enhancing brand value through innovations and stepping up digital marketing. Further, management is pleased with the solid start to fiscal 2017, which witnessed solid sales and volume growth across most segments, alongside delivering impressive gross margin – reflecting its focus on 2020 Strategy. Management expects to sustain its superb momentum as it remains confident of its core business plans, thus ushering in confidence about the upcoming results. (Read more: Clorox Q2 Earnings: Stock Set to Gain on Likely Beat?)

Finally, let’s see what’s in store for The Hershey Company (HSY Quick QuoteHSY - Free Report) , one of the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. The company has outperformed the Zacks Consensus Estimate in all of the trailing four quarters, with an average surprise of 6.5%.

Our proven model does not conclusively show that Hershey is likely to beat earnings estimates in fourth-quarter 2016. It has an Earnings ESP of 0.00%, with both the Most Accurate estimate and the Zacks Consensus Estimate pegged at $1.08. The company carries a Zacks Rank #3, which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hershey’s sales have been weak since 2014 due to lackluster category trends, increased competition from the broader snacking category and soft international growth. In order to counter the tepid sales, management has optimized its North American manufacturing footprint, added manufacturing capabilities in international markets, increased supply chain productivity, invested in cost saving projects and improved the sales mix significantly under its continuous improvement and productivity (“CIP”) program. It also expects its CMG category to improve sequentially in the fourth quarter. The launch of Cookie Layer Crunch may add 100–200 basis points to the quarterly sales.

However, the company expects to incur higher advertising and related consumer marketing expense in the to-be-reported quarter. Hershey expects its gross margin in 2016 to contract slightly compared to the previous year. (Read more: Can Hershey Spring a Surprise this Earnings Season?

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