The second-quarter 2016 earnings growth still looks dreary with only slight improvement. The general consensus too remains the same with the forecast of the fifth straight quarter of earnings decline.
As per the Earnings Trends report, total S&P 500 earnings are expected to be down 3.4% impacted by 0.5% lower revenues, with growth going in to the negative territory for nine of the 16 Zacks sectors. Additionally, the third-quarter estimates are on a downward spiral too, with all indications pointing to an earnings recession that is here to stay. However, we anticipate the effects to subside in the fourth quarter and meaningful earnings growth to resume.
Wireless Industry in Focus
Wireless service players are part of the broader telecommunications industry. This industry is one of the few to have undergone rapid technological advancement even amid recession. The U.S. telecom industry has lately emerged as an intensely contested space, where cut-throat pricing competition is severely straining margins. Rising demand for technologically superior products is a silver lining in this otherwise tough environment.
We look at two wireless communication stocks that are due to report their quarterly results on Jul 27.
T-Mobile US Inc.(TMUS - Free Report) is a national provider of mobile communications services. The company has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. As per our proven model, which requires a combination of Zacks Rank #3 or better and a positive Earnings ESP, T Mobile US doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter. (Read more: Can T-Mobile US Pull a Surprise in Q2 Earnings?)
ATN International, Inc. (ATNI - Free Report) invests, owns and operates communications companies and renewable energy assets. ATN International too has a combination of a Zacks Rank #3 and an Earnings ESP of 0.00%. Although a favorable Zacks Rank increases the predictive power of ESP, we need a positive ESP to be confident of an earnings beat.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The second-quarter 2016 earnings growth still looks dreary with only slight improvement. The general consensus too remains the same with the forecast of the fifth straight quarter of earnings decline.
As per the Earnings Trends report, total S&P 500 earnings are expected to be down 3.4% impacted by 0.5% lower revenues, with growth going in to the negative territory for nine of the 16 Zacks sectors. Additionally, the third-quarter estimates are on a downward spiral too, with all indications pointing to an earnings recession that is here to stay. However, we anticipate the effects to subside in the fourth quarter and meaningful earnings growth to resume.
Wireless Industry in Focus
Wireless service players are part of the broader telecommunications industry. This industry is one of the few to have undergone rapid technological advancement even amid recession. The U.S. telecom industry has lately emerged as an intensely contested space, where cut-throat pricing competition is severely straining margins. Rising demand for technologically superior products is a silver lining in this otherwise tough environment.
We look at two wireless communication stocks that are due to report their quarterly results on Jul 27.
T-Mobile US Inc.(TMUS - Free Report) is a national provider of mobile communications services. The company has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. As per our proven model, which requires a combination of Zacks Rank #3 or better and a positive Earnings ESP, T Mobile US doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter. (Read more: Can T-Mobile US Pull a Surprise in Q2 Earnings?)
ATN International, Inc. (ATNI - Free Report) invests, owns and operates communications companies and renewable energy assets. ATN International too has a combination of a Zacks Rank #3 and an Earnings ESP of 0.00%. Although a favorable Zacks Rank increases the predictive power of ESP, we need a positive ESP to be confident of an earnings beat.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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