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Earnings season is always an exciting time to be an investor, with companies finally pulling the curtain back and unveiling what’s transpired behind closed doors.
As usual, the big banks opened the season, with things shifting into a higher gear this week.
For those seeking companies that could positively surprise during the action-packed period, Meta Platforms (META - Free Report) , General Electric (GE - Free Report) , and American Air Lines (AAL - Free Report) could all be contenders.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Currently, all three sport a positive Zacks Earnings ESP.
Zacks Earnings ESP (Expected Surprise Prediction) finds companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is more accurate and can better predict the future, providing investors an advantage in earnings season.
Meta Platforms
An investor favorite, Meta Platforms, has seen its near-term earnings outlook shift bright over the last several months, landing the stock into a favorable Zacks Rank #1 (Strong Buy). Currently, META has an Earnings ESP Score of 7.8%, with earnings expected on April 26th.
The company posted a big beat in its latest release, surpassing the Zacks Consensus EPS Estimate by more than 40% and delivering a 3% sales surprise. Below is a chart illustrating the market’s reaction to previous quarterly releases.
Image Source: Zacks Investment Research
For the quarter to be reported, the Zacks Consensus EPS Estimate of $1.96 indicates a pullback within earnings year-over-year. In addition, the company’s top line is also forecasted to retrace marginally, with the $27.5 billion quarterly estimate indicating a 1.5% Y/Y decline.
Image Source: Zacks Investment Research
American Airlines
American Airlines’ earnings outlook has improved substantially across all timeframes over the last 60 days, reflecting bullish sentiment among analysts. Currently, AAL has an Earnings ESP Score of 67%, with earnings scheduled to hit on April 27th.
Image Source: Zacks Investment Research
The company’s growth is hard to ignore; the Zacks Consensus EPS Estimate of $0.04 for the quarter to be reported implies an improvement of 100% year-over-year. Further, our consensus revenue estimate stands at $12.3 billion, nearly 40% higher than year-ago quarterly sales of $8.9 billion.
As we can see below, the company’s revenue has recovered from the pandemic shock, with sales now eclipsing pre-pandemic levels.
Image Source: Zacks Investment Research
General Electric
Like the stocks above, General Electric has witnessed positive earnings estimate revisions, helping push the stock into the highly-coveted Zacks Rank #1 (Strong Buy). GE currently has an Earnings ESP Score of 10.1%, with earnings expected to drop on April 25th.
The market reacted well to the company’s latest earnings release, as we can see illustrated in the chart below. General Electric posted earnings of $1.24 per share, reflecting a solid 12% beat. Impressively, the company boasts a 28% four-quarter trailing average EPS beat.
Image Source: Zacks Investment Research
Regarding the upcoming release, the Zacks Consensus EPS Estimate of $0.13 indicates a decline in earnings from the year-ago quarter. The company’s top line is forecasted to witness a slowdown also, with the $13.4 billion quarterly estimate implying a decline of roughly 20% year-over-year.
Image Source: Zacks Investment Research
Bottom Line
With earnings season shifting into higher gear, investors will remain busy sorting through quarterly prints daily. We’ve already received results from many big banks, with the majority posting better-than-expected results.
And for those seeking stocks that can positively surprise, all three above – Meta Platforms (META - Free Report) , General Electric (GE - Free Report) , and American Air Lines (AAL - Free Report) – deserve a watchlist spot.
When combining a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of a bottom line beat is as high as 70%, according to our 10-year backtest.
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Don't Overlook These 3 Upcoming Earnings Reports
Earnings season is always an exciting time to be an investor, with companies finally pulling the curtain back and unveiling what’s transpired behind closed doors.
As usual, the big banks opened the season, with things shifting into a higher gear this week.
For those seeking companies that could positively surprise during the action-packed period, Meta Platforms (META - Free Report) , General Electric (GE - Free Report) , and American Air Lines (AAL - Free Report) could all be contenders.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Currently, all three sport a positive Zacks Earnings ESP.
Zacks Earnings ESP (Expected Surprise Prediction) finds companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is more accurate and can better predict the future, providing investors an advantage in earnings season.
Meta Platforms
An investor favorite, Meta Platforms, has seen its near-term earnings outlook shift bright over the last several months, landing the stock into a favorable Zacks Rank #1 (Strong Buy). Currently, META has an Earnings ESP Score of 7.8%, with earnings expected on April 26th.
The company posted a big beat in its latest release, surpassing the Zacks Consensus EPS Estimate by more than 40% and delivering a 3% sales surprise. Below is a chart illustrating the market’s reaction to previous quarterly releases.
Image Source: Zacks Investment Research
For the quarter to be reported, the Zacks Consensus EPS Estimate of $1.96 indicates a pullback within earnings year-over-year. In addition, the company’s top line is also forecasted to retrace marginally, with the $27.5 billion quarterly estimate indicating a 1.5% Y/Y decline.
Image Source: Zacks Investment Research
American Airlines
American Airlines’ earnings outlook has improved substantially across all timeframes over the last 60 days, reflecting bullish sentiment among analysts. Currently, AAL has an Earnings ESP Score of 67%, with earnings scheduled to hit on April 27th.
Image Source: Zacks Investment Research
The company’s growth is hard to ignore; the Zacks Consensus EPS Estimate of $0.04 for the quarter to be reported implies an improvement of 100% year-over-year. Further, our consensus revenue estimate stands at $12.3 billion, nearly 40% higher than year-ago quarterly sales of $8.9 billion.
As we can see below, the company’s revenue has recovered from the pandemic shock, with sales now eclipsing pre-pandemic levels.
Image Source: Zacks Investment Research
General Electric
Like the stocks above, General Electric has witnessed positive earnings estimate revisions, helping push the stock into the highly-coveted Zacks Rank #1 (Strong Buy). GE currently has an Earnings ESP Score of 10.1%, with earnings expected to drop on April 25th.
The market reacted well to the company’s latest earnings release, as we can see illustrated in the chart below. General Electric posted earnings of $1.24 per share, reflecting a solid 12% beat. Impressively, the company boasts a 28% four-quarter trailing average EPS beat.
Image Source: Zacks Investment Research
Regarding the upcoming release, the Zacks Consensus EPS Estimate of $0.13 indicates a decline in earnings from the year-ago quarter. The company’s top line is forecasted to witness a slowdown also, with the $13.4 billion quarterly estimate implying a decline of roughly 20% year-over-year.
Image Source: Zacks Investment Research
Bottom Line
With earnings season shifting into higher gear, investors will remain busy sorting through quarterly prints daily. We’ve already received results from many big banks, with the majority posting better-than-expected results.
And for those seeking stocks that can positively surprise, all three above – Meta Platforms (META - Free Report) , General Electric (GE - Free Report) , and American Air Lines (AAL - Free Report) – deserve a watchlist spot.
When combining a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of a bottom line beat is as high as 70%, according to our 10-year backtest.