The Q2 earnings season has already crossed its midway point, with around 63.4% of the S&P 500 members having reported their results as of Jul 29, 2016 (per the latest Earnings Preview report).
It seems growth for the benchmark S&P 500 index is headed to be in negative territory for the fifth quarter in a row, with total Q2 earnings projected to be down 3.4% year over year on 0.4% lower revenues, stemming from soft macroeconomic conditions and a languid energy sector. Moreover, tension in the global financial markets triggered by the unexpected Brexit vote and choppy oil prices remain major drags.
According to the Zacks Industry classification, the heavy construction industry is broadly grouped under the construction sector – one of the 16 broad Zacks sectors. The construction sector seems to be scoring well in this tepid scenario, with earnings up 14.3% on 11.3% higher revenues. Of the stocks that have reported earnings so far in the sector, 57.1% beat EPS estimates while 42.9% surpassed revenue estimates as of Jul 27.
We anticipate double-digit earnings growth of 11.5% for the sector in this quarter, gaining from a healthy home-remodeling market, supported by strong job data and rising consumer confidence. Further, recently released housing data has been fairly upbeat and a tight supply situation raises spirits about the sector’s performance for the rest of 2016.
With the construction sector gaining momentum, it makes sense to pick stocks from this space. Among several other index members yet to release results, let’s see what’s in store for the following four major heavy construction stocks gearing up to release their quarterly numbers on Aug 4.
MasTec, Inc. (MTZ - Free Report) is one of the largest providers of construction services to the telecommunications industry in the U.S. The company's principal business comprises installation and maintenance of aerial, underground and buried copper and fiber optic cable, underground conduit and manhole systems.
Last quarter, MasTec had posted a positive surprise of 100%. The company surpassed estimates in two out of the past four quarters and has an average positive surprise of 35.27%. The Zacks Consensus Estimate for the quarter is pegged at 20 cents.
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 Q2 earnings season has already crossed its midway point, with around 63.4% of the S&P 500 members having reported their results as of Jul 29, 2016 (per the latest Earnings Preview report).
It seems growth for the benchmark S&P 500 index is headed to be in negative territory for the fifth quarter in a row, with total Q2 earnings projected to be down 3.4% year over year on 0.4% lower revenues, stemming from soft macroeconomic conditions and a languid energy sector. Moreover, tension in the global financial markets triggered by the unexpected Brexit vote and choppy oil prices remain major drags.
According to the Zacks Industry classification, the heavy construction industry is broadly grouped under the construction sector – one of the 16 broad Zacks sectors. The construction sector seems to be scoring well in this tepid scenario, with earnings up 14.3% on 11.3% higher revenues. Of the stocks that have reported earnings so far in the sector, 57.1% beat EPS estimates while 42.9% surpassed revenue estimates as of Jul 27.
We anticipate double-digit earnings growth of 11.5% for the sector in this quarter, gaining from a healthy home-remodeling market, supported by strong job data and rising consumer confidence. Further, recently released housing data has been fairly upbeat and a tight supply situation raises spirits about the sector’s performance for the rest of 2016.
With the construction sector gaining momentum, it makes sense to pick stocks from this space. Among several other index members yet to release results, let’s see what’s in store for the following four major heavy construction stocks gearing up to release their quarterly numbers on Aug 4.
MasTec, Inc. (MTZ - Free Report) is one of the largest providers of construction services to the telecommunications industry in the U.S. The company's principal business comprises installation and maintenance of aerial, underground and buried copper and fiber optic cable, underground conduit and manhole systems.
Last quarter, MasTec had posted a positive surprise of 100%. The company surpassed estimates in two out of the past four quarters and has an average positive surprise of 35.27%. The Zacks Consensus Estimate for the quarter is pegged at 20 cents.
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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