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Top 5 High-Flying Mid Cap Stocks Set to Beat on Q1 Earnings

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The first-quarter 2021 earnings season is in full swing delivering highly impressive results. As of Apr 28, 201 S&P 500 companies reported results. Total earnings of these companies are up 49.8% year over year on 7.2% higher revenues, with 84.6% companies having surpassed EPS estimates and 76.6% beating on revenues.

For the first quarter as a whole, total earnings of the S&P 500 companies are expected to be up 35.2% from the same period last year on 7.2% 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.

Meanwhile, in line with impressive earnings results, five mid-cap ( market capital > $1 billion < $10 billion) stocks with a favorable Zacks Rank are set to beat on first-quarter earnings results within the next seven days. Notably, these stocks offered double-digit returns last quarter. Investment in these stocks is likely to provide a solid upside in the near future.

Mid Caps in Q1 At a Glance

Aside from large-cap and small-cap stocks, mid caps stocks witnessed a strong rally in first-quarter 2021. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 7.8%, 5.8% and 2.8%, respectively. The two small-cap centric indexes — the Russell 2000 and the S&P 600 — jumped 12.4% and 17.9%, respectively. Meanwhile, the mid-cap specific  S&P 400 climbed 13.1% in the same period.

In the first quarter, corporate revenues and profits across the board had been boosted by an 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. Mid-sized companies were no exceptions.

Our Top Picks

We have narrowed our search to five mid-cap stocks each of which 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 States Steel Corp. (X - Free Report) produces and sells flat-rolled and tubular steel products primarily in North America and Europe. It operates through three segments: North American Flat-Rolled, U. S. Steel Europe, and Tubular Products. The company has an Earnings ESP of +29.67%.

United States Steel has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 15.5% over the last 30 days. It has a trailing four-quarter earnings surprise of 21.6%, on average. This Zacks Rank #2 company will release earnings results on Apr 29, after the closing bell.   

Provident Financial Services Inc. (PFS - Free Report) operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. The company has an Earnings ESP of +1.78%.

Provident Financial Services has an expected earnings growth rate of 14.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the last 30 days. It has a trailing four-quarter earnings surprise of 31.1%, on average. This Zacks Rank #2 company will release earnings results on Apr 30, before the opening bell.   

Dime Community Bancshares Inc. (DCOM - Free Report) operates as the holding company for Dime Community Bank that provides commercial banking and financial services in New York. It provides deposit and loan products and financial services to local businesses, consumers and municipalities. This Zacks Rank #2 company has an Earnings ESP of +6.83%.

Dime Community Bancshares has an expected earnings growth rate of 3.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.1% over the last 30 days. The company will release earnings results on Apr 30, before the opening bell.   

Viper Energy Partners LP (VNOM - Free Report) is an independent oil & gas exploration and production company. The partnership has mineral interest in prolific oil-rich shale plays like the Eagle Ford and Permian Basin. This Zacks Rank #2 company has an Earnings ESP of +40.00%.

The Zacks Consensus Estimate for Viper Energy's for current-year earnings has improved 20% over the last 7 days. It has a trailing four-quarter earnings surprise of 279.5%, on average. The company will release earnings results on May 3, after the closing bell.   

Vishay Intertechnology Inc. (VSH - Free Report) manufactures and supplies discrete semiconductors and passive electronic components in Asia, Europe, and the Americas. It operates through six segments: Metal Oxide Semiconductor Field Effect Transistors, Diodes, Optoelectronic Components, Resistors, Inductors, and Capacitors. This Zacks Rank #1 company has an Earnings ESP of +5.22%.

Vishay Intertechnology has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.4% over the last 30 days. It has a trailing four-quarter earnings surprise of 66.8%, on average. The company will release earnings results on May 4, before the opening bell.   

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>