Back to top

Analyst Blog

The McGraw-Hill Companies, Inc. is slated to report its first-quarter 2013 results on Apr 30, 2013. In the last quarter, it posted bottom-line results that met the Zacks Consensus Estimate. Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

McGraw-Hill's strategic investments in businesses facilitate it to generate long-term profitability. The formation of S&P Dow Jones Indices coupled with S&P Capital IQ’s acquisitions of Credit Market Analysis Limited, QuantHouse, R2 Financial Technologies and TheMarkets.com position it well against its competitors to grab a wider market through superior functionality and investor oriented services and in turn help boost the top- and bottom-line results of the company.

Earnings Whispers?

Our proven model does not conclusively show that McGraw-Hill is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP (Read :Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2 or #3 for this to happen. This is not the case here as you will see below.

Zacks ESP: ESP for McGraw-Hill is 0.00%. This is because the Most Accurate Estimate stands at 74 cents, which is in line with the Zacks Consensus Estimate.

Zacks Rank #2 (Buy): McGraw-Hill’s Zacks Rank #2 (Buy) lowers the predictive power of ESP because the Zacks Rank #2 when combined with 0.00% ESP makes surprise prediction difficult. We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Hertz Global Holdings, Inc. (HTZ - Snapshot Report), Earnings ESP of +5.56% and a Zacks Rank #1 (Strong Buy)

J&J Snack Foods Corp.(JJSF - Snapshot Report), Earnings ESP of +9.84% and a Zacks Rank #2 (Buy)

Amazon.com Inc. (AMZN - Analyst Report), Earnings ESP of +14.29% and a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%