The Q1 earnings season is off to a solid start with big names like JPMorgan Chase & Co. (JPM - Free Report) and Citigroup reporting better-than-expected results. Per the latest Earnings Preview , the impressive performance is likely to continue. On a year-over-year basis, both the top and bottom line (for S&P 500 companies) are projected to improve 16.6% and 7.5%, respectively, in this reporting cycle.
The report further predicts that 14 of the 16 Zacks sectors will end the Q1 earnings season with a year-over-year increase in the bottom line. Of which, 11 are anticipated to exhibit double-digit earnings growth.
One of those sectors is the transportation sector, wherein earnings are anticipated to increase 15.4%. Notably, this highly diversified sector includes airlines, railroads, truckers, equipment and leasing companies, among others. We believe that the favorable economic indicators along with the new tax law bodes well for the sector participants.
Already, key sector participants from the transportation sector namely, United Continental Holdings, Inc. (UAL - Free Report) , CSX Corporation (CSX - Free Report) and Delta Air Lines Inc. (DAL - Free Report) , posted better-than-expected earnings per share and revenues in the current reporting cycle.
However, rise in fuel costs does not augur well for transportation stocks. This is because expenses pertaining to fuel represent one of the major input costs for any transportation company. Of late, oil prices have been on an uptrend and were up approximately 8% in the Q1 (January-March period).
Given this backdrop, investors interested in the transportation space will keenly await Q1 reports from key players like Werner Enterprises, Inc. (WERN - Free Report) , GATX Corporation (GATX - Free Report) and Marten Transport, Ltd. (MRTN - Free Report) on Apr 19.
According to our quantitative model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Werner Enterprises is one of the country’s leading carriers and logistics operators, headquartered in Omaha, NE. Although the company carries a Zacks Rank #3, it is unlikely to report better-than-expected earnings in the quarter. This is because it has an Earnings ESP of -1.64% (the Most Accurate estimate of 36 cents per share comes in a penny lower than the Zacks Consensus Estimate). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The next company is GATX Corporation, based in Chicago, IL. It leases, operates and manages widely used assets in rail, marine and industrial equipment markets. GATX has a Zacks Rank #3 and an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.17. The unfavorable combination of GATX’s Zacks Rank #3 and a 0.00% ESP makes an earnings beat unlikely in Q1.
Lastly, Marten Transport, Ltd., based in Mondovi, WI, is a long-haul truckload carrier. The company has a Zacks Rank #2 (Buy) and an Earnings ESP of +1.78%. This favorable combination at Marten Transport makes us reasonably confident of an earnings beat.
Can Hackers Put Money INTO Your Portfolio?
Earlier this year, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>
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 Q1 earnings season is off to a solid start with big names like JPMorgan Chase & Co. (JPM - Free Report) and Citigroup reporting better-than-expected results. Per the latest Earnings Preview , the impressive performance is likely to continue. On a year-over-year basis, both the top and bottom line (for S&P 500 companies) are projected to improve 16.6% and 7.5%, respectively, in this reporting cycle.
The report further predicts that 14 of the 16 Zacks sectors will end the Q1 earnings season with a year-over-year increase in the bottom line. Of which, 11 are anticipated to exhibit double-digit earnings growth.
One of those sectors is the transportation sector, wherein earnings are anticipated to increase 15.4%. Notably, this highly diversified sector includes airlines, railroads, truckers, equipment and leasing companies, among others. We believe that the favorable economic indicators along with the new tax law bodes well for the sector participants.
Already, key sector participants from the transportation sector namely, United Continental Holdings, Inc. (UAL - Free Report) , CSX Corporation (CSX - Free Report) and Delta Air Lines Inc. (DAL - Free Report) , posted better-than-expected earnings per share and revenues in the current reporting cycle.
However, rise in fuel costs does not augur well for transportation stocks. This is because expenses pertaining to fuel represent one of the major input costs for any transportation company. Of late, oil prices have been on an uptrend and were up approximately 8% in the Q1 (January-March period).
Given this backdrop, investors interested in the transportation space will keenly await Q1 reports from key players like Werner Enterprises, Inc. (WERN - Free Report) , GATX Corporation (GATX - Free Report) and Marten Transport, Ltd. (MRTN - Free Report) on Apr 19.
According to our quantitative model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Werner Enterprises is one of the country’s leading carriers and logistics operators, headquartered in Omaha, NE. Although the company carries a Zacks Rank #3, it is unlikely to report better-than-expected earnings in the quarter. This is because it has an Earnings ESP of -1.64% (the Most Accurate estimate of 36 cents per share comes in a penny lower than the Zacks Consensus Estimate). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The next company is GATX Corporation, based in Chicago, IL. It leases, operates and manages widely used assets in rail, marine and industrial equipment markets. GATX has a Zacks Rank #3 and an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.17. The unfavorable combination of GATX’s Zacks Rank #3 and a 0.00% ESP makes an earnings beat unlikely in Q1.
Lastly, Marten Transport, Ltd., based in Mondovi, WI, is a long-haul truckload carrier. The company has a Zacks Rank #2 (Buy) and an Earnings ESP of +1.78%. This favorable combination at Marten Transport makes us reasonably confident of an earnings beat.
Can Hackers Put Money INTO Your Portfolio?
Earlier this year, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>
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 >>
Get the latest research report on JPM - FREE
Get the latest research report on CSX - FREE
Get the latest research report on DAL - FREE
Get the latest research report on UAL - FREE
Get the latest research report on MRTN - FREE
Get the latest research report on GATX - FREE
Get the latest research report on WERN - FREE