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Top 5 Stocks Set to Beat on Earnings Today After Closing Bell

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The first-quarter 2021 earnings so far have come in better than market expectations at the beginning of the reporting cycle. Corporate revenues and profits across the board have been boosted by aggressive deployment of nationwide COVID-19 vaccinations, faster-than-expected reopening of the economy, unprecedented fiscal stimulus injected by the government and an extremely accommodative Fed.

Meanwhile, five companies with a favorable Zacks Rank are poised to beat on first-quarter earnings today after market closes. Investment in these stocks may be fruitful going forward.

Robust Q1 Earnings Results So Far

The first-quarter 2021 earnings season has started with much vigor. As of Apr 27 before the opening bell, 153 S&P 500 companies reported results. Total earnings of these companies are up 46% year over year on 5.9% higher revenues, with 84.3% companies having surpassed EPS estimates and 75.2% beating on revenues.

For the first quarter as a whole, total earnings of the S&P 500 companies are expected to be up 28.1% from the same period last year on 6.3% higher revenues. These estimates compare favorably with the 20.4% jump in earnings on 5.6% higher revenues projected at the beginning of the reporting cycle.

Our Top Picks

We have narrowed down our search to five stocks slated to release first-quarter earnings results today after the closing bell. 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.

The chart below shows the price performance of our five picks in the last quarter.

 

United Rentals Inc. (URI - Free Report) operates as a rent equipment company to a diverse customer base including construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities in the United States and Canada. It operates in two segments, General Rentals, and Trench, Power and Fluid Solutions.

The company currently has a Zacks Rank #2 and an Earnings ESP of +9.39%. United Rentals has an expected earnings growth rate of 7.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. It has a trailing four-quarter earnings surprise of 44.1%, on average.    

eBay Inc. (EBAY - Free Report) is one of the largest online retailers in the world. It operates the marketplace and classifieds platforms that connect buyers and sellers worldwide enabling users to list, buy, sell and pay for items through various online, mobile and offline channels.

The company currently has a Zacks Rank #2 and an Earnings ESP of +2.98%. eBay has an expected earnings growth rate of 18.2% for the current year. It has a trailing four-quarter earnings surprise of 5.6%, on average.    

Moelis & Company (MC - Free Report) operates as an investment banking advisory firm in the United States, Europe, and internationally. It offers advisory services in the areas of mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters.

The company currently has a Zacks Rank #1 and an Earnings ESP of +4.98%. Moelis has an expected earnings growth rate of 8.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.6% over the last 30 days. It has a trailing four-quarter earnings surprise of 673.2%, on average.    

Wyndham Hotels & Resorts Inc. (WH - Free Report) operates as a hotel franchisor primarily in Canada, Mexico, Colombia, Ecuador, Turkey, Germany, the UK, the Caribbean and Margarita Island in Venezuela. It operates through the Hotel Franchising and Hotel Management segments. The Zacks Rank #1 company has an Earnings ESP of +2.82%.

Wyndham Hotels & Resorts has an expected earnings growth rate of 98.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the last 30 days. It has a trailing four-quarter earnings surprise of 120.3%, on average.

Methanex Corp. (MEOH - Free Report) is the world’s largest supplier of methanol to North America, Asia-Pacific, Europe and Latin America. The company currently has a Zacks Rank #2 and an Earnings ESP of +6.21%.

Methanex has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.8% over the last 30 days. It has a trailing four-quarter earnings surprise of 2.8%, on average.    

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.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>