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5 Must-Buy Stocks Set to Beat on Earnings Next Week
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Wall Street suffered from severe volatility in the third quarter of 2019 as trade tensions between the United States and China heightened. Global economic slowdown intensified owing to lingering trade conflict between the two largest trading countries of the world. Moreover, geopolitical crisis in the Middle East resulted in crude oil supply disruption.
Against the backdrop of several economic and financial hurdles, market participants will keenly watch out for third-quarter 2019 earnings results of U.S. corporates that gather pace from this week.
Third Quarter at a Glance
Wall Street started third quarter of 2019 with the continuation of the bull run. However, the rally ended in August owing to inversion of the government bond yield curve which many economists believe is a sign of an impending recession. Trade jitters, yield curve inversion and global economic slowdown, especially in the Eurozone significantly dented investors’ confidence.
Moreover, geopolitical conflict in the Middle East between Iran and Saudi Arabia, and the drone attack on Saudi Arabia’s largest oilfield resulted in a temporary oil shock. Meanwhile, Brexit-related problems prolonged and political turmoil in Italy injected volatility in the stock markets.
In the United States, economists and financial experts stayed confused with several mixed economic data. However, as a major relief to the market, the Fed reduced the benchmark interest rate by 50 basis points in two tranches during the third quarter. Notably, rate cut happened for the first time in the more than a decade.
Finally, the third quarter was a mixed bag unlike the first two quarters when the Wall Street bulls had staged a continued rally. In the period under review, the Dow and the S&P 500 gained 1.2% each while the Nasdaq Composite suffered a marginal loss of 0.1%.
Weak Earnings Expectations for Third Quarter
The third-quarter earnings estimate is currently negative. At present, total third-quarter earnings for the S&P 500 Index are expected to be down 5% from the prior-year period on 4.2% higher revenues. However, the initial estimates of both first and second-quarter earnings were negative too, while the actual results were far better than the estimates. Notably, on Oct 15, several major banks and medical companies reported strong earnings results. The major thrust of earnings results will be felt in the next 2-3 weeks.
5 Stocks Set to Beat on Earnings Next Month
At this stage, it will be prudent to invest in stocks with a favorable Zacks Rank and positive Earnings ESP. Strong earnings results will likely ensure a northbound move in the stock prices of these companies in the near term despite market volatility.
We have narrowed down our search to five companies slated to release their earnings results next week. Each of these stocks carries a Zacks Rank #1 (Strong Buy) and has jumped in 2019. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%.
Hasbro Inc. (HAS - Free Report) is engaged in the design, manufacture and marketing of high-tech and digital games and toys under various well-known brands. The company has an Earnings ESP of +1.35% for third-quarter 2019.
Hasbro has an expected earnings growth rate of 14.9% and 24.5% for the current quarter and year, respectively. The Zacks Consensus Estimate for the current quarter and year has improved 1.8% and 0.6%, respectively, over the last 30 days.
The company delivered positive earnings surprise in two out of the last four quarters, with an average beat of 95.2%. The stock has soared 50.1% year to date. Hasbro is expected to release earnings results on Oct 22, before the opening bell.
Agnico Eagle Mines Ltd. (AEM - Free Report) is a gold producer with mining operations in Canada, Mexico and Finland, and exploration activities in Canada, Europe, Latin America and the United States. The company has an Earnings ESP of +11.11% for third-quarter 2019.
Agnico Eagle has an expected earnings growth rate of 2,633.3% for the current quarter. The Zacks Consensus Estimate for the current quarter and year improved 3.8% and 2.5%, respectively, over the last 30 days.
The company delivered positive earnings surprise in the last four quarters, with an average beat of 266.7%. The stock has surged 28.3% year to date. Agnico Eagle is expected to release earnings results on Oct 23, after the closing bell.
CoreLogic Inc. is a leading provider of consumer, financial and property information, analytics and services to business and government. The company has an Earnings ESP of +1.35% for third-quarter 2019.
CoreLogic has an expected earnings growth rate of 23.6% for the current quarter. The Zacks Consensus Estimate for the current quarter and year improved 1.4% and 0.4%, respectively, over the last 30 days.
The company delivered positive earnings surprise in three out of the last four quarters, with an average beat of 4.9%. The stock has soared 41.2% year to date. CoreLogic is expected to release earnings results on Oct 23, after the closing bell.
Meritage Homes Corp. (MTH - Free Report) is primarily engaged in building and selling single-family homes for entry-level, first-time, move-up, luxury and active adult buyers in the historically high-growth regions of the United States. The company has an Earnings ESP of +1.34% for third-quarter 2019.
Meritage Homes has an expected earnings growth rate of 12.3% for the current quarter. The Zacks Consensus Estimate for the current quarter and year improved 0.7% and 0.9%, respectively, over the last 30 days.
The company delivered positive earnings surprise in three out of the last four quarters, with an average beat of 13.5%. The stock has climbed 98% year to date. Meritage Homes is expected to release earnings results on Oct 22, after the closing bell.
Deckers Outdoor Corp. (DECK - Free Report) is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports, and other lifestyle-related activities. It has an Earnings ESP of +4.31% for second-quarter fiscal 2020.
The Zacks Consensus Estimate for the current quarter and year improved 0.9% and 0.2%, respectively, over the last 30 days. The company delivered positive earnings surprise in the last four quarters, with an average beat of 213.6%. The stock has surged 20.1% year to date. Deckers Outdoor is expected to release earnings results on Oct 24, after the closing bell.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
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5 Must-Buy Stocks Set to Beat on Earnings Next Week
Wall Street suffered from severe volatility in the third quarter of 2019 as trade tensions between the United States and China heightened. Global economic slowdown intensified owing to lingering trade conflict between the two largest trading countries of the world. Moreover, geopolitical crisis in the Middle East resulted in crude oil supply disruption.
Against the backdrop of several economic and financial hurdles, market participants will keenly watch out for third-quarter 2019 earnings results of U.S. corporates that gather pace from this week.
Third Quarter at a Glance
Wall Street started third quarter of 2019 with the continuation of the bull run. However, the rally ended in August owing to inversion of the government bond yield curve which many economists believe is a sign of an impending recession. Trade jitters, yield curve inversion and global economic slowdown, especially in the Eurozone significantly dented investors’ confidence.
Moreover, geopolitical conflict in the Middle East between Iran and Saudi Arabia, and the drone attack on Saudi Arabia’s largest oilfield resulted in a temporary oil shock. Meanwhile, Brexit-related problems prolonged and political turmoil in Italy injected volatility in the stock markets.
In the United States, economists and financial experts stayed confused with several mixed economic data. However, as a major relief to the market, the Fed reduced the benchmark interest rate by 50 basis points in two tranches during the third quarter. Notably, rate cut happened for the first time in the more than a decade.
Finally, the third quarter was a mixed bag unlike the first two quarters when the Wall Street bulls had staged a continued rally. In the period under review, the Dow and the S&P 500 gained 1.2% each while the Nasdaq Composite suffered a marginal loss of 0.1%.
Weak Earnings Expectations for Third Quarter
The third-quarter earnings estimate is currently negative. At present, total third-quarter earnings for the S&P 500 Index are expected to be down 5% from the prior-year period on 4.2% higher revenues. However, the initial estimates of both first and second-quarter earnings were negative too, while the actual results were far better than the estimates. Notably, on Oct 15, several major banks and medical companies reported strong earnings results. The major thrust of earnings results will be felt in the next 2-3 weeks.
5 Stocks Set to Beat on Earnings Next Month
At this stage, it will be prudent to invest in stocks with a favorable Zacks Rank and positive Earnings ESP. Strong earnings results will likely ensure a northbound move in the stock prices of these companies in the near term despite market volatility.
We have narrowed down our search to five companies slated to release their earnings results next week. Each of these stocks carries a Zacks Rank #1 (Strong Buy) and has jumped in 2019. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%.
Hasbro Inc. (HAS - Free Report) is engaged in the design, manufacture and marketing of high-tech and digital games and toys under various well-known brands. The company has an Earnings ESP of +1.35% for third-quarter 2019.
Hasbro has an expected earnings growth rate of 14.9% and 24.5% for the current quarter and year, respectively. The Zacks Consensus Estimate for the current quarter and year has improved 1.8% and 0.6%, respectively, over the last 30 days.
The company delivered positive earnings surprise in two out of the last four quarters, with an average beat of 95.2%. The stock has soared 50.1% year to date. Hasbro is expected to release earnings results on Oct 22, before the opening bell.
Agnico Eagle Mines Ltd. (AEM - Free Report) is a gold producer with mining operations in Canada, Mexico and Finland, and exploration activities in Canada, Europe, Latin America and the United States. The company has an Earnings ESP of +11.11% for third-quarter 2019.
Agnico Eagle has an expected earnings growth rate of 2,633.3% for the current quarter. The Zacks Consensus Estimate for the current quarter and year improved 3.8% and 2.5%, respectively, over the last 30 days.
The company delivered positive earnings surprise in the last four quarters, with an average beat of 266.7%. The stock has surged 28.3% year to date. Agnico Eagle is expected to release earnings results on Oct 23, after the closing bell.
CoreLogic Inc. is a leading provider of consumer, financial and property information, analytics and services to business and government. The company has an Earnings ESP of +1.35% for third-quarter 2019.
CoreLogic has an expected earnings growth rate of 23.6% for the current quarter. The Zacks Consensus Estimate for the current quarter and year improved 1.4% and 0.4%, respectively, over the last 30 days.
The company delivered positive earnings surprise in three out of the last four quarters, with an average beat of 4.9%. The stock has soared 41.2% year to date. CoreLogic is expected to release earnings results on Oct 23, after the closing bell.
Meritage Homes Corp. (MTH - Free Report) is primarily engaged in building and selling single-family homes for entry-level, first-time, move-up, luxury and active adult buyers in the historically high-growth regions of the United States. The company has an Earnings ESP of +1.34% for third-quarter 2019.
Meritage Homes has an expected earnings growth rate of 12.3% for the current quarter. The Zacks Consensus Estimate for the current quarter and year improved 0.7% and 0.9%, respectively, over the last 30 days.
The company delivered positive earnings surprise in three out of the last four quarters, with an average beat of 13.5%. The stock has climbed 98% year to date. Meritage Homes is expected to release earnings results on Oct 22, after the closing bell.
Deckers Outdoor Corp. (DECK - Free Report) is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports, and other lifestyle-related activities. It has an Earnings ESP of +4.31% for second-quarter fiscal 2020.
The Zacks Consensus Estimate for the current quarter and year improved 0.9% and 0.2%, respectively, over the last 30 days. The company delivered positive earnings surprise in the last four quarters, with an average beat of 213.6%. The stock has surged 20.1% year to date. Deckers Outdoor is expected to release earnings results on Oct 24, after the closing bell.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Download Free Report Now >>