For Immediate Release
Chicago, IL – January 25, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Graco Inc. (
GGG Quick Quote GGG - Free Report) , Boot Barn Holdings, Inc. ( BOOT Quick Quote BOOT - Free Report) , Freeport-McMoRan Inc. ( FCX Quick Quote FCX - Free Report) , Invesco Ltd. ( IVZ Quick Quote IVZ - Free Report) and D.R. Horton, Inc. ( DHI Quick Quote DHI - Free Report) . Here are highlights from Friday’s Analyst Blog: Top Stocks Poised to Beat Earnings Estimates Next Week
The fourth-quarter 2020 earnings season will be in full swing from next week. This earnings season is likely to have strong implications on Wall Street. Strong overall earnings results and future guidance will support the current stock market valuation, which a section of economists and financial experts have already characterized as overvalued.
The earnings picture has markedly improved in the first two weeks of this reporting cycle. Although most of the heavyweight U.S. corporates from different sectors and industries are yet to report their financial results, six stocks with a favorable Zacks Rank are set to beat earnings estimates next week. Investment in these stocks should be fruitful going forward.
Fourth-Quarter Earnings Picture Improves
As of Jan 20, 43 S&P 500 companies reported their quarterly results. Total earnings of these companies were up 7.4% from the same period last year on 3.3% higher revenues, with 93% beating EPS estimates and 76.7% beating revenue estimates.
This reflects better performance by the same group of companies than the first three quarters of 2020. Overall, the fourth-quarter earnings for the S&P 500 Index are projected to be down 6.4% year over year on 0.5% higher revenues. This is a notable improvement over the projection of 7.8% decline in earnings on 0.3% higher revenues at the beginning of the reporting cycle.
Notably, first-quarter earnings were down 12.8% year over year on 1.6% higher revenues. Second-quarter earnings plunged 32.2% on 9.3% lower revenues. Third-quarter earnings dropped 7% year over year on 0.7% lower revenues. The fourth-quarter earnings estimates were steadily improving since July 2020. (Read More:
) Early Q4 Results Show an Improving Earnings Picture Our Top Picks
We have narrowed down our search to six stocks slated to release earnings results next week. Each of these stocks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive
Earnings ESP. You can see . the complete list of today's Zacks #1 Rank stocks here
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after the earnings releases. You can uncover the best stocks to buy or sell before they're reported with our
Earnings ESP Filter. Graco designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The company currently has a Zacks Rank #2 and an Earnings ESP of +1.68% for fourth-quarter 2020. Graco has an expected earnings growth rate of 14.3% for the current year.
The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 7 days. It has a trailing four-quarter earnings surprise of 21.7%, on average. The company is set to release earnings results on Jan 25, after the closing bell.
Boot Barn Holdings operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It also provides gifts and home merchandise. The company has an Earnings ESP of +2.74% for the third quarter of fiscal 2021 (ended December 2020).
The Zacks Consensus Estimate of Boot Barn for current-year earnings has improved 0.7% over the last 7 days. It has a trailing four-quarter earnings surprise of 21.9%, on average. The Zacks Rank #1 company is set to release earnings results on Jan 25, after the closing bell.
Freeport-McMoRan is engaged in mineral exploration and development; mining and milling of copper, gold, molybdenum and silver; as well as the smelting and refining of copper concentrates. The company has an Earnings ESP of +2.71% for fourth-quarter 2020.
Freeport-McMoRan has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.4% over the last 7 days. It has a trailing four-quarter earnings surprise of 87%, on average. The Zacks Rank #2 company is set to release earnings results on Jan 26, before the opening bell.
Invesco provides its investment management services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions and sovereign wealth funds. The company has an Earnings ESP of +1.7% for fourth-quarter 2020.
Invesco has an expected earnings growth rate of 31.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 7 days. The Zacks Rank #1 company is set to release earnings results on Jan 26, before the opening bell.
D.R. Horton operates as a homebuilding company in the East, Midwest, Southeast, South Central, Southwest, and West United States. The company currently has a Zacks Rank #2 and an Earnings ESP of +8.91% for the first quarter of fiscal 2021 (ended December 2020).
D.R. Horton has an expected earnings growth rate of 25.1% for the current year (ending September 2021). The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days. It has a trailing four-quarter earnings surprise of 21.6%, on average. The company is set to release earnings results on Jan 26, before the opening bell.
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