We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HCP Inc (HCP) Q1 Earnings: Will it Pull Off a Surprise?
Read MoreHide Full Article
HCP Inc. (HCP - Free Report) is slated to report first-quarter 2017 results on May 2, before the opening bell.
Last quarter, this healthcare real estate investment trust (REIT) delivered a positive earnings surprise of 3.51% in terms of funds from operations (FFO) per share. The company exceeded estimates in three of the trailing four quarters and met estimate once. This resulted in an average positive surprise of 2.66%. The Zacks Consensus Estimate for the first-quarter FFO per share is currently pegged at 48 cents.
Let’s see how things are shaping up prior to this announcement.
Why a Likely Positive Surprise?
Our proven model shows that HCP Inc. is likely to beat on estimates this time around because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates, and HCP Inc. has the right mix.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP, which represents the percentage difference between the Most Accurate estimate of 49 cents and the Zacks Consensus Estimate of 48 cents, is +2.08%. This is a meaningful indicator of a likely positive surprise.
Zacks Rank: HCP Inc. carries a Zacks Rank #3. This makes us reasonably confident of a positive surprise this season.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
What's Driving the Better-than-Expected Earnings?
HCP maintains a diverse and balanced portfolio in the healthcare sector. The company is likely to gain in the to-be-reported quarter from rising healthcare spending and a growing aging population. Further, strategic investments, tie-ups and acquisitions are anticipated to drive decent cash flows.
However, growth might be adversely affected by cut-throat competition in its markets. Additionally, there is increased supply in certain healthcare asset categories.
Stocks That Warrant a Look
Here are a few stocks in the REIT sector that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.
STORE Capital Corporation , expected to release first-quarter results on May 4, has an Earnings ESP of +2.44% and a Zacks Rank #3.
Hudson Pacific Properties, Inc. (HPP - Free Report) , expected to release first-quarter results on May 4, has an Earnings ESP of +2.08% and a Zacks Rank #3.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
HCP Inc (HCP) Q1 Earnings: Will it Pull Off a Surprise?
HCP Inc. (HCP - Free Report) is slated to report first-quarter 2017 results on May 2, before the opening bell.
Last quarter, this healthcare real estate investment trust (REIT) delivered a positive earnings surprise of 3.51% in terms of funds from operations (FFO) per share. The company exceeded estimates in three of the trailing four quarters and met estimate once. This resulted in an average positive surprise of 2.66%. The Zacks Consensus Estimate for the first-quarter FFO per share is currently pegged at 48 cents.
This is depicted in the graph below.
HCP, Inc. Price and EPS Surprise
HCP, Inc. Price and EPS Surprise | HCP, Inc. Quote
Let’s see how things are shaping up prior to this announcement.
Why a Likely Positive Surprise?
Our proven model shows that HCP Inc. is likely to beat on estimates this time around because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates, and HCP Inc. has the right mix.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP, which represents the percentage difference between the Most Accurate estimate of 49 cents and the Zacks Consensus Estimate of 48 cents, is +2.08%. This is a meaningful indicator of a likely positive surprise.
Zacks Rank: HCP Inc. carries a Zacks Rank #3. This makes us reasonably confident of a positive surprise this season.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
What's Driving the Better-than-Expected Earnings?
HCP maintains a diverse and balanced portfolio in the healthcare sector. The company is likely to gain in the to-be-reported quarter from rising healthcare spending and a growing aging population. Further, strategic investments, tie-ups and acquisitions are anticipated to drive decent cash flows.
However, growth might be adversely affected by cut-throat competition in its markets. Additionally, there is increased supply in certain healthcare asset categories.
Stocks That Warrant a Look
Here are a few stocks in the REIT sector that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.
EPR Properties (EPR - Free Report) , expected to release earnings on May 2, has an Earnings ESP of +0.84% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
STORE Capital Corporation , expected to release first-quarter results on May 4, has an Earnings ESP of +2.44% and a Zacks Rank #3.
Hudson Pacific Properties, Inc. (HPP - Free Report) , expected to release first-quarter results on May 4, has an Earnings ESP of +2.08% and a Zacks Rank #3.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>