We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Buy 5 Business Services Stocks Ahead of Q2 Earnings Next Week
Read MoreHide Full Article
We are in the middle of the coronavirus-stricken second-quarter 2020 earnings season and the results so far are highly disappointing mainly due to the lockdowns.
Coronavirus-induced devastations haven't spared any sector and business services has suffered significantly. Nevertheless, a handful of business services companies are set to beat second-quarter earnings estimates next week.
A Brief Review of Q2
U.S. GDP plunged 32.9% in second-quarter 2020, marking its worst-ever quarterly decline, with the previous nearest low witnessed in the second quarter of 1921. Notably, in the first quarter, the economy declined by 5% year over year.
Economic activities were way below last year in the second quarter since lockdowns continued for nearly two months till the third week of May. Meanwhile, by mid-June, all 50 states reopened their economies in some form or the other.
However, a second wave of COVID-19 in some states since the second half of June forced them to again close some parts of their economies in less than a month. So with businesses mostly remaining closed in the April-June quarter, business services providers suffered.
5 Business Services Stocks Set to Beat on Q2 Earnings
Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to soar after earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of our five picks in the last quarter.
Fiserv Inc. provides information management systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, business process outsourcing, software and systems solutions. The company has an Earnings ESP of +3.14%.
The company has an expected earnings growth rate of 10.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.2% over the last 30 days. It has a trailing four-quarter earnings surprise of 0.2%, on average. The company is set to release earnings results on Aug 5, after the closing bell.
Houghton Mifflin Harcourt Co. provides curriculum, supplemental, intervention solutions, and professional learning services worldwide. It operates in two segments, Education and HMH Books & Media. The company has an Earnings ESP of +13.21%.
The Zacks Consensus Estimate for Houghton Mifflin's current-year earnings has improved 0.3% over the last 7 days. It has a trailing four-quarter earnings surprise of 2.7%, on average. The company is set to release earnings results on Aug 6, before the opening bell.
FleetCor Technologies Inc. provides commercial payment solutions in North America, Latin America, Europe and Australasia. It offers fuel payment solutions to businesses and government entities that operate vehicle fleet, as well as to oil and leasing companies, and fuel marketers. The company has an Earnings ESP of +0.83%.
The Zacks Consensus Estimate for FleetCor Technologies' current-year earnings has improved 0.3% over the last 7 days. It has a trailing four-quarter earnings surprise of 3.3%, on average. The company is set to release earnings results on Aug 6, after the closing bell.
Republic Services Inc. (RSG - Free Report) provides non-hazardous solid waste collection, transfer, recycling, disposal and energy services for small-container, large-container, municipal and residential and energy services customers in the United States and Puerto Rico. The company has an Earnings ESP of +4.37%.
The Zacks Consensus Estimate for Republic Services' current-year earnings has improved 0.7% over the last 7 days. It has a trailing four-quarter earnings surprise of 3.3%, on average. The company is set to release earnings results on Aug 6, after the closing bell.
SailPoint Technologies Holdings Inc. designs, develops, and markets identity governance software solutions in the United States, Europe, the Middle East, Africa and internationally. The company has an Earnings ESP of +66.67%.
The Zacks Consensus Estimate for SailPoint Technologies' current-year earnings has improved 25% over the last 60 days. It has a trailing four-quarter earnings surprise of 162.7%, on average. The company is set to release earnings results on Aug 6, after the closing bell.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Buy 5 Business Services Stocks Ahead of Q2 Earnings Next Week
We are in the middle of the coronavirus-stricken second-quarter 2020 earnings season and the results so far are highly disappointing mainly due to the lockdowns.
Coronavirus-induced devastations haven't spared any sector and business services has suffered significantly. Nevertheless, a handful of business services companies are set to beat second-quarter earnings estimates next week.
A Brief Review of Q2
U.S. GDP plunged 32.9% in second-quarter 2020, marking its worst-ever quarterly decline, with the previous nearest low witnessed in the second quarter of 1921. Notably, in the first quarter, the economy declined by 5% year over year.
Economic activities were way below last year in the second quarter since lockdowns continued for nearly two months till the third week of May. Meanwhile, by mid-June, all 50 states reopened their economies in some form or the other.
However, a second wave of COVID-19 in some states since the second half of June forced them to again close some parts of their economies in less than a month. So with businesses mostly remaining closed in the April-June quarter, business services providers suffered.
5 Business Services Stocks Set to Beat on Q2 Earnings
We have narrowed down our search to five business services stocks that are slated to report earnings results next week. Each of these stocks carries a Zacks Rank #2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to soar after earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of our five picks in the last quarter.
Fiserv Inc. provides information management systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, business process outsourcing, software and systems solutions. The company has an Earnings ESP of +3.14%.
The company has an expected earnings growth rate of 10.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.2% over the last 30 days. It has a trailing four-quarter earnings surprise of 0.2%, on average. The company is set to release earnings results on Aug 5, after the closing bell.
Houghton Mifflin Harcourt Co. provides curriculum, supplemental, intervention solutions, and professional learning services worldwide. It operates in two segments, Education and HMH Books & Media. The company has an Earnings ESP of +13.21%.
The Zacks Consensus Estimate for Houghton Mifflin's current-year earnings has improved 0.3% over the last 7 days. It has a trailing four-quarter earnings surprise of 2.7%, on average. The company is set to release earnings results on Aug 6, before the opening bell.
FleetCor Technologies Inc. provides commercial payment solutions in North America, Latin America, Europe and Australasia. It offers fuel payment solutions to businesses and government entities that operate vehicle fleet, as well as to oil and leasing companies, and fuel marketers. The company has an Earnings ESP of +0.83%.
The Zacks Consensus Estimate for FleetCor Technologies' current-year earnings has improved 0.3% over the last 7 days. It has a trailing four-quarter earnings surprise of 3.3%, on average. The company is set to release earnings results on Aug 6, after the closing bell.
Republic Services Inc. (RSG - Free Report) provides non-hazardous solid waste collection, transfer, recycling, disposal and energy services for small-container, large-container, municipal and residential and energy services customers in the United States and Puerto Rico. The company has an Earnings ESP of +4.37%.
The Zacks Consensus Estimate for Republic Services' current-year earnings has improved 0.7% over the last 7 days. It has a trailing four-quarter earnings surprise of 3.3%, on average. The company is set to release earnings results on Aug 6, after the closing bell.
SailPoint Technologies Holdings Inc. designs, develops, and markets identity governance software solutions in the United States, Europe, the Middle East, Africa and internationally. The company has an Earnings ESP of +66.67%.
The Zacks Consensus Estimate for SailPoint Technologies' current-year earnings has improved 25% over the last 60 days. It has a trailing four-quarter earnings surprise of 162.7%, on average. The company is set to release earnings results on Aug 6, after the closing bell.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>