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But despite the Dow Jones Industrial Average adding nearly 400 points and the S&P 500 climbing over 1.18%, investors shouldn’t assume that the recent extended sell-off is completely over. This means investors should remain aware of the most recent analyst sentiment, and as always, focus on stocks that are likely to top earnings estimates.
Finding stocks that beat analysts’ expectations is a great and proven way to beat the market. With that in mind, one way for investors to try to make solid returns—especially during somewhat volatile times—is to pick stocks expected to beat earnings estimates.
Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat. Zacks Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst estimates.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
With all of this said, we are giving our readers a free look at five strong stocks in order to help them identify a handful of companies that seem ready to top earnings estimates this week.
This Texas-based supplier of building products and prefabricated components for residential construction is currently a Zacks Rank #2 (Buy) and sports a “B” for Value in our Style Scores system. Builders FirstSource’s fourth-quarter sales are projected to jump nearly 10%, while its earnings are expected to climb by 6.25%, based on our current Zacks Consensus Estimates.
On top of that, BLDR’s Earnings ESP of 10.15% signals that earnings estimates have been higher directly ahead of the firm’s Q4 results. Builders FirstSource is set to report its fourth-quarter and full fiscal year earnings on Wednesday, Feb. 28, after the closing bell.
This off-price retail power, which owns TJ Maxx, Marshalls, and HomeGoods, is currently a Zacks Rank #2 (Buy) and rocks a “B” grade for Value. Our current estimates are calling for TJX’s Q4 sales to climb over 14% to hit $10.82 billion. The retailer’s earnings are expected to come in at $1.28 per share, which would mark a nearly 24% year-over-year jump.
TJX also has an Earnings ESP of 0.51%, signaling that analyst sentiment about the retailer has improved recently. Investors should also note that TJX has met or topped earnings estimates in 14-straight quarters. The retaileris set to report its Q4 and fiscal full-year earnings before the opening bell on Wednesday, February 28.
The parent company of Monster Energy and other beverages is currently a Zacks Rank #2 (Buy) and earns a “B” grade for Growth. Monster is expected to see its sales pop by 11.64% while its earnings are projected to expand by 5.71%.
Monster currentlyhas an Earnings ESP of 3.40%. Investors might be happy to note that the beverage giant topped earnings estimates by nearly 17% in the fourth quarter of 2016. MNST is set to report its Q4 and fiscal full-year earnings after market close on Wednesday, Feb. 28.
Best Buy is currently a Zacks Rank #2 (Buy) and sports “A” grades for both Value and Growth, as well as a “B” for Momentum. Before last quarter, this retail electronics power had topped or beat earnings estimates for nearly five years in a row, with massive beats in the first and second quarters of 2017.
Best Buy is expected to see its Q4 earning reach $2.03 per share, which would mark a 4.10% jump from the year-ago period. BBY also currently sports an Earnings ESP of 4.59%. Best Buy is expected to report its Q4 results before the opening bell Thursday, March 1.
This sports apparel and footwear retailer is currently a Zacks Rank #2 (Buy) and boasts an overall “A” VGM score. Last quarter, Foot Locker topped our consensus earnings estimate figure by 8.75%. Foot Locker also currently has an Earnings ESP of 3.88%.
Foot Locker is set to report its Q4 and fiscal full-year earnings before the opening bell Friday, March 2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
5 Stocks Set to Beat Earnings Estimates This Week
Big moves from giants such as Berkshire Hathaway (BRK.B - Free Report) , Apple (AAPL - Free Report) , 3M (MMM - Free Report) , and Intel (INTC - Free Report) helped lift the market and boost investor confidence on Monday.
But despite the Dow Jones Industrial Average adding nearly 400 points and the S&P 500 climbing over 1.18%, investors shouldn’t assume that the recent extended sell-off is completely over. This means investors should remain aware of the most recent analyst sentiment, and as always, focus on stocks that are likely to top earnings estimates.
Finding stocks that beat analysts’ expectations is a great and proven way to beat the market. With that in mind, one way for investors to try to make solid returns—especially during somewhat volatile times—is to pick stocks expected to beat earnings estimates.
Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat. Zacks Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst estimates.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
With all of this said, we are giving our readers a free look at five strong stocks in order to help them identify a handful of companies that seem ready to top earnings estimates this week.
1. Builders FirstSource, Inc. (BLDR - Free Report)
This Texas-based supplier of building products and prefabricated components for residential construction is currently a Zacks Rank #2 (Buy) and sports a “B” for Value in our Style Scores system. Builders FirstSource’s fourth-quarter sales are projected to jump nearly 10%, while its earnings are expected to climb by 6.25%, based on our current Zacks Consensus Estimates.
On top of that, BLDR’s Earnings ESP of 10.15% signals that earnings estimates have been higher directly ahead of the firm’s Q4 results. Builders FirstSource is set to report its fourth-quarter and full fiscal year earnings on Wednesday, Feb. 28, after the closing bell.
2. TJX Companies, Inc. (TJX - Free Report)
This off-price retail power, which owns TJ Maxx, Marshalls, and HomeGoods, is currently a Zacks Rank #2 (Buy) and rocks a “B” grade for Value. Our current estimates are calling for TJX’s Q4 sales to climb over 14% to hit $10.82 billion. The retailer’s earnings are expected to come in at $1.28 per share, which would mark a nearly 24% year-over-year jump.
TJX also has an Earnings ESP of 0.51%, signaling that analyst sentiment about the retailer has improved recently. Investors should also note that TJX has met or topped earnings estimates in 14-straight quarters. The retaileris set to report its Q4 and fiscal full-year earnings before the opening bell on Wednesday, February 28.
3. Monster Beverage Corporation (MNST - Free Report)
The parent company of Monster Energy and other beverages is currently a Zacks Rank #2 (Buy) and earns a “B” grade for Growth. Monster is expected to see its sales pop by 11.64% while its earnings are projected to expand by 5.71%.
Monster currentlyhas an Earnings ESP of 3.40%. Investors might be happy to note that the beverage giant topped earnings estimates by nearly 17% in the fourth quarter of 2016. MNST is set to report its Q4 and fiscal full-year earnings after market close on Wednesday, Feb. 28.
4. Best Buy Co., Inc. (BBY - Free Report)
Best Buy is currently a Zacks Rank #2 (Buy) and sports “A” grades for both Value and Growth, as well as a “B” for Momentum. Before last quarter, this retail electronics power had topped or beat earnings estimates for nearly five years in a row, with massive beats in the first and second quarters of 2017.
Best Buy is expected to see its Q4 earning reach $2.03 per share, which would mark a 4.10% jump from the year-ago period. BBY also currently sports an Earnings ESP of 4.59%. Best Buy is expected to report its Q4 results before the opening bell Thursday, March 1.
5. Foot Locker, Inc. (FL - Free Report)
This sports apparel and footwear retailer is currently a Zacks Rank #2 (Buy) and boasts an overall “A” VGM score. Last quarter, Foot Locker topped our consensus earnings estimate figure by 8.75%. Foot Locker also currently has an Earnings ESP of 3.88%.
Foot Locker is set to report its Q4 and fiscal full-year earnings before the opening bell Friday, March 2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>