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Industrial Stocks to Watch for Earnings on Oct 31: CMPR & More

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U.S. industrial production saw its 4th-straight monthly gain this September. The headline numbers primarily improved on the back of robust manufacturing and mining output. The December-enacted tax overhaul, increased government spending and a favorable job-market scenario are expediting business investments and boosting the performance of industrial stocks. Nonetheless, escalating trade tensions between the United States and other economies, flaring up freight charges, and shortage of skilled workers remain key causes of concern for these businesses.

The Zacks Industrial Products sector is one of the 16 Zacks sectors. Per our Earnings Outlook (dated Oct 24, 2018), roughly 33.3% S&P 500 stocks from the sector have reported results for this quarter, recording 25.2% rise in earnings and 7.3% upside in revenues on a year-over-year basis. In Q3, the sector’s earnings are predicted to be up 19.6% year over year on revenue growth of 7.7%.

What’s in the Cards for These 4 Industrial Stocks?

Cimpress N.V. (CMPR - Free Report) is slated to report first-quarter fiscal 2019 (ended September 2018) results after the market closes.

The company pulled off an outstanding average positive earnings surprise of 155.37% in the past four quarters. However, our proven model does not conclusively show that Cimpress will beat earnings estimates in the to-be-reported quarter. This is because 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. But that is not the case here as you will see below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Cimpress’ Earnings ESP of 0.00%, when combined with a Zacks Rank of 3, makes surprise prediction inconclusive. However, the Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is currently pegged at a loss of 13 cents.

Cimpress N.V Price and EPS Surprise

 

Cimpress N.V Price and EPS Surprise | Cimpress N.V Quote

Improved pricing and investments to expand business in high growth markets will likely drive the company’s performance. Nonetheless, rising cost and impact of the Albumprinter divestment will hurt its bottom-line results in the quarter under review.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Industrial Technologies, Inc. (AIT - Free Report) is also set to report first-quarter fiscal 2019 (ended September 2018) results before the market opens.

The company generated an average positive earnings surprise of 11.78% in the preceding four quarters. However, our proven model does not conclusively show that Applied Industrial will beat earnings estimates in the quarter under review.

The company has an Earnings EPS of 0.00%. This is because the Zacks Consensus Estimate and Most Accurate Estimate for the company’s fiscal first-quarter earnings are both pinned at $1.10.

Applied Industrial’s favorable Zacks Rank #3, when combined with an Earnings ESP of 0.00%, makes surprise prediction inconclusive. Stellar end-market sales and strategic acquisitions are anticipated to be conducive to the company’s performance in the quarter to be reported. However, material price inflation remains a major drag.

John Bean Technologies Corporation (JBT - Free Report) will report third-quarter 2018 results after the market closes. The company came up with an average positive earnings surprise of 5.12% in the last four quarters. Our proven model states that the company will keep its earnings streak alive in the to-be-reported quarter.

John Bean Technologies’ favorable Zacks Rank of 3, when combined with an Earnings ESP of +0.13%, predicts a likely earnings beat. The Zacks Consensus Estimate for the company’s third-quarter earnings is currently pegged at $1.11.

Improving FoodTech and AeroTech businesses, efforts undertaken to expand business globally, as well as the company’s restructuring and automation moves will likely boost the stock’s performance in the Jul-Sep quarter.

SiteOne Landscape Supply, Inc. (SITE - Free Report) is slated to report Sep-end quarter results before the market opens. The company delivered an average positive earnings surprise of 11.69% in the preceding four quarters. However, our proven model does not conclusively show that SiteOne Landscape Supply will beat earnings estimates in this quarter.

The company has an Earnings EPS of -0.41%. The Zacks Consensus Estimate for the company’s third-quarter earnings is currently pinned at 74 cents.

SiteOne Landscape Supply’s Zacks Rank #4, when combined with a negative Earnings ESP, makes surprise prediction inconclusive. The company’s performance in the soon-to-be-reported quarter is expected to reflect benefits from solid end-market sales, ongoing scaling initiatives, as well as the integration of acquired assets. Nevertheless, sudden downturn in the housing market or unfavorable climatic conditions may impede near-term results.

It should be noted 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 negative estimate revisions.

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