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4 Finance Companies Likely to Beat Earnings Estimates

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At Zacks, we believe earnings estimates and projections are the most vital and influential metric in determining the future success of a stock. Earnings season is right around the corner, and these reports can cast skepticism, as well as optimism, onto a business’s financial outlook, which can heavily affect a stock’s future performance.

Fortunately, Zacks Premium customers can utilize the Earnings ESP (Expected Surprise Prediction) filter in order to discover which stocks are expected to beat their projected earnings estimates. A positive Earnings ESP, along with a Zacks Rank of #3 (Hold) or better, can be a solid indicator of an impending earnings surprise.

Today we’ll be looking specifically at financial stocks! Finance companies are known to be mostly stable investments, with little expectations of big earnings surprise and growth. Nevertheless, the Zacks Earnings ESP filter allows us to search for finance firms that are projected to beat their earnings projections.

Check out these 4 finance companies to buy now:

1.       Artisan Partners Asset Management Inc. (APAM - Free Report)

Artisan Partners Asset Management Inc. is an independent investment management firm that provides a broad range of global equity investment strategies. This company pays its shareholders an impressive 7.78% dividend and currently holds “A” grades for Value and Momentum. Basically, we believe that this stock is undervalued in comparison to the market and that its share price has continued to increase.

Artisan Partners possesses an impressive projected EPS growth of 48.41% and a projected sales growth of 7.93%, both of which compare favorably to its industry averages of 11.31% and 4.02%, respectively. Furthermore, the company features a strong RoE of 99.17%, which towers over the industry average of 10.74%.

Artisan Partners Asset Management Inc. was recently promoted to a Zacks Rank #1 (Strong Buy), and with an Earnings ESP of 3.45%, we can feel more confident about its ability to beat earnings estimates.

2.       Boston Private Financial Holdings, Inc.

Boston Private Financial Holdings offers a full range of banking, commercial and residential lending, and various investment management services. The company has also beaten its earnings projections in four out of its five past operational quarters by an average of 13.27%. Boston Private holds a current cash flow growth of 33.39% and projected EPS growth of 9.69%, both of which beat the industry averages. Additionally, the company attempts to reward its shareholders by paying a respectable 2.88% dividend.

Boston Private Financial Holdings currently sports a Zacks Rank #2 (Buy), and if its track record of impressive earnings beats wasn’t enough, its Earnings ESP of 9.09% should make investors feel better about its chances to beat earnings estimates this quarter.

3.       Interactive Brokers Group, Inc. (IBKR - Free Report)

Interactive brokers is an automated global electronic market maker and broker specializing in routing order, executing and processing trades in securities, future, and foreign exchange instruments. The company is also known for its consistent technological excellence that constantly adjusts to restrictions made by the SEC.

Interactive Brokers hold an impressive current cash flow growth of 53.52% and cash/price ratio of 2.93, both of which defeat its industry averages. Additionally, the company possesses a net margin of 5.45%, which sits above the current industry average. In essence, Interactive Brokers is retaining a large amount of its revenue in comparison to its competitors.

Interactive Brokers Group was recently promoted to a Zacks Rank #2 (Buy), and with a positive Earnings ESP of a whopping 15.15%, this stock is looking strong headed into earnings season.

4.       E*TRADE Financial Corporation

E*TRADE Financial Corporation is a financial services company and an online brokerage industry. The company possesses an earnings ESP of 2.08%. Additionally, E*TRADE has beaten its earnings projections in each of the past seven operational quarters by an average of 18.61%. The company holds an “A” grade for Momentum, which means that its share price has continued to increase over time.

Further, E*TRADE features an impressive projected sales growth of 15.73%. Also, E*TRADE possesses a cash flow per share of $2.75 in comparison with the industry average of $1.62. This means that the company is generating a large amount of cash per share than its competitors.

E*TRADE Financial Corporation currently holds a Zacks Rank #1 (Strong Buy), and along with its aforementioned positive Earnings ESP, this could mean that a beat is in store this quarter.

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Interactive Brokers Group, Inc. (IBKR) - free report >>

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