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Industrial Stocks' Earnings on Oct 24: ALLE, FBHS & More
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This week is slated to see a number of releases from S&P 500 companies.
It’s worth mentioning that roughly 16.8% of the S&P 500 members reported results till Oct 19. Earnings of these companies collectively increased 19.2% year over year and revenues expanded 8.4%. Earnings and sales beats were 82.1% and 61.9%, respectively.
For the S&P 500 group, earnings in the third quarter are projected to grow 19.2% year over year while revenues are anticipated to increase 7.2%.
Here we talk about Industrial Products — one of the 16 Zacks sectors. This sector is one of the fourteen sectors that are expected to record year-over-year earnings growth in the third quarter of 2018. Specifically, the sector’s earnings are predicted to grow 18.7% year over year on revenue growth of 7.4%.
This sector stands to gain from expanding industrial production, rising demand for machinery made in the country, healthy job market, favorable tax policy changes implemented in December 2017 and infrastructural development. However, trade tension between the United States and foreign nations, especially China — induced by imposition of import tariffs on steel, aluminum and many other items — is adversely impacting corporate margins.
Below, we briefly discussed what we expect from the four industrial stocks ALLE, FBHS, SWK and PRLB, which are slated to report their numbers for the July-September quarter on Oct 25.
Allegion plc (ALLE - Free Report) : The company will release third-quarter results before the market opens. Allegion delivered better-than-expected results in two of the last four quarters, while lagged estimates once and matched estimates once. The average earnings surprise was a positive 4.38%.
Our proven model provides some idea about stocks that are about to release earnings results. Per the model, a stock needs a combination of a positive Earnings ESP (the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Currently, Allegion carries a Zacks Rank #3 and it has an Earnings ESP of -0.06%. The company stands to gain from buyouts, solid product demand, pricing actions and forex tailwinds. However, cost inflation is creating headwind.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Fortune Brands Home & Security, Inc. : The company will report third-quarter 2018 results after the market closes. It recorded better-than-expected results in two of the trailing four quarters, while lagged estimates twice. Average earnings surprise was a negative 1.38%.
Fortune Brands Home & Security, Inc. Price, Consensus and EPS Surprise
Presently, Fortune Brands carries a Zacks Rank #3 and has an Earnings ESP of -3.94%. The company will gain from solid demand for its products, effective pricing actions and share buybacks. However, high costs and huge debts can drag.
Stanley Black & Decker, Inc. (SWK - Free Report) : The company will report third-quarter 2018 results before the market opens. It recorded better-than-expected results in the last four quarters. Average earnings surprise was a positive 8.93%.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Presently, Stanley Black & Decker carries a Zacks Rank #3 and has an Earnings ESP of +26.60%. The company is poised to benefit from product popularity, emerging market business, buyouts and favorable e-commerce trends. However, inflation in commodity costs, as well as tariffs and forex woes, will be detrimental.
Proto Labs, Inc. (PRLB - Free Report) : The company will report third-quarter 2018 results before the market opens. It recorded better-than-expected results in three of the last four quarters while met estimates once. Average earnings surprise was a positive 3.54%.
Proto Labs, Inc. Price, Consensus and EPS Surprise
Presently, Proto Labs carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. Over the past 60 days, the Zacks Consensus Estimate for the quarter under review has remained unchanged at 74 cents.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Industrial Stocks' Earnings on Oct 24: ALLE, FBHS & More
This week is slated to see a number of releases from S&P 500 companies.
It’s worth mentioning that roughly 16.8% of the S&P 500 members reported results till Oct 19. Earnings of these companies collectively increased 19.2% year over year and revenues expanded 8.4%. Earnings and sales beats were 82.1% and 61.9%, respectively.
For the S&P 500 group, earnings in the third quarter are projected to grow 19.2% year over year while revenues are anticipated to increase 7.2%.
Here we talk about Industrial Products — one of the 16 Zacks sectors. This sector is one of the fourteen sectors that are expected to record year-over-year earnings growth in the third quarter of 2018. Specifically, the sector’s earnings are predicted to grow 18.7% year over year on revenue growth of 7.4%.
This sector stands to gain from expanding industrial production, rising demand for machinery made in the country, healthy job market, favorable tax policy changes implemented in December 2017 and infrastructural development. However, trade tension between the United States and foreign nations, especially China — induced by imposition of import tariffs on steel, aluminum and many other items — is adversely impacting corporate margins.
Below, we briefly discussed what we expect from the four industrial stocks ALLE, FBHS, SWK and PRLB, which are slated to report their numbers for the July-September quarter on Oct 25.
Allegion plc (ALLE - Free Report) : The company will release third-quarter results before the market opens. Allegion delivered better-than-expected results in two of the last four quarters, while lagged estimates once and matched estimates once. The average earnings surprise was a positive 4.38%.
Allegion PLC Price, Consensus and EPS Surprise
Allegion PLC Price, Consensus and EPS Surprise | Allegion PLC Quote
Our proven model provides some idea about stocks that are about to release earnings results. Per the model, a stock needs a combination of a positive Earnings ESP (the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Currently, Allegion carries a Zacks Rank #3 and it has an Earnings ESP of -0.06%. The company stands to gain from buyouts, solid product demand, pricing actions and forex tailwinds. However, cost inflation is creating headwind.
Over the past 60 days, the Zacks Consensus Estimate for the quarter under review has remained unchanged at $1.21. (For more please read: Allegion to Report Q3 Earnings: What's in the Cards?)
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Fortune Brands Home & Security, Inc. : The company will report third-quarter 2018 results after the market closes. It recorded better-than-expected results in two of the trailing four quarters, while lagged estimates twice. Average earnings surprise was a negative 1.38%.
Fortune Brands Home & Security, Inc. Price, Consensus and EPS Surprise
Fortune Brands Home & Security, Inc. Price, Consensus and EPS Surprise | Fortune Brands Home & Security, Inc. Quote
Presently, Fortune Brands carries a Zacks Rank #3 and has an Earnings ESP of -3.94%. The company will gain from solid demand for its products, effective pricing actions and share buybacks. However, high costs and huge debts can drag.
Over the past 60 days, the Zacks Consensus Estimate for the quarter under review decreased 0.9% to $1.05. (For more please read: What's in Store for Fortune Brands in Q3 Earnings?)
Stanley Black & Decker, Inc. (SWK - Free Report) : The company will report third-quarter 2018 results before the market opens. It recorded better-than-expected results in the last four quarters. Average earnings surprise was a positive 8.93%.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise | Stanley Black & Decker, Inc. Quote
Presently, Stanley Black & Decker carries a Zacks Rank #3 and has an Earnings ESP of +26.60%. The company is poised to benefit from product popularity, emerging market business, buyouts and favorable e-commerce trends. However, inflation in commodity costs, as well as tariffs and forex woes, will be detrimental.
Over the past 60 days, the Zacks Consensus Estimate for the quarter under review has remained unchanged at $2.02. (For more please read: Stanley Black & Decker Q3 Earnings: What to Expect?)
Proto Labs, Inc. (PRLB - Free Report) : The company will report third-quarter 2018 results before the market opens. It recorded better-than-expected results in three of the last four quarters while met estimates once. Average earnings surprise was a positive 3.54%.
Proto Labs, Inc. Price, Consensus and EPS Surprise
Proto Labs, Inc. Price, Consensus and EPS Surprise | Proto Labs, Inc. Quote
Presently, Proto Labs carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. Over the past 60 days, the Zacks Consensus Estimate for the quarter under review has remained unchanged at 74 cents.
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 >>