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5 Large-Cap Stocks Likely to Win Big on Earnings This Week
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The third-quarter 2023 earnings season started last week. Major banks and other financial institutions were the first to report their quarterly financial numbers. The season has begun with weak expectations as the market’s benchmark — the S&P 500 Index — is likely to witness the fourth consecutive quarter of earnings decline.
As of Oct 13, total earnings of the S&P 500 Index are likely to decline 1.3% year over year on 0.8% higher revenues. However, our current projection has shown that this reporting cycle is expected to be the last period of declining earnings for the S&P 500 Index, with positive growth resuming from the fourth quarter. In this regard, the guidance given by management will be of utmost importance.
Meanwhile, we have selected five large-cap stocks that are set to beat on third quarter earnings this week.
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 anticipated to appreciate after their 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 five stocks in the last quarter.
Image Source: Zacks Investment Research
Crown Castle Inc.’s (CCI - Free Report) portfolio of wireless communication infrastructure assets in the United States is poised to benefit from the capital spending by wireless carriers to deploy 4G and 5G networks amid incremental customer demand, rise in mobile data usage and higher spectrum availability.
CCI’s efforts to increase its small cell count to 10,000 in 2023 to meet this growing demand seem encouraging. Also, CCI’s long-term leases with a solid and creditworthy tenant base assure steady revenues.
Crown Castle has an Earnings ESP of +0.70%. The company is set to release earnings results on Oct 18, after the closing bell.
Fifth Third Bancorp’s (FITB - Free Report) diverse revenue base and strategic acquisitions will likely drive top-line growth in the upcoming period. We project total revenues to reflect a CAGR of 2.1% over the next three years. A decent deposit and loan balance will support FITB’s balance sheet growth.
We estimate both metrics to rise 1.6% in 2023. Moreover, given ample liquidity and a decent capital position, FITB’s capital distribution activities seem sustainable and will keep enhancing shareholders’ value.
Fifth Third Bancorp has an Earnings ESP of +0.44%. FITB recorded earnings surprises in two out of the last four reported quarters, with an average beat of 0.9%. The company is set to release earnings results on Oct 19, before the opening bell.
American Express Co. (AXP - Free Report) has benefited from several growth initiatives, such as launching new products, reaching new agreements and forging alliances. We expect the top line at around $60.8 billion in 2023. Consumer spending on T&E, which carry higher margins for AXP, is advancing well. AXP’s balance sheet looks strong with manageable debt. Solid cash-generation abilities enable the pursuit of business investments and prudent deployment of capital.
American Express has an Earnings ESP of +0.60%. It has an expected earnings growth rate of 13% for the current year. The company is set to release earnings results on Oct 20, before the opening bell.
AT&T Inc. (T - Free Report) is likely to benefit from a customer-centric business model, a lower churn rate and higher-tier unlimited plans. Solid growth momentum of T in the postpaid wireless business and an integrated fiber expansion strategy are expected to help bridge the digital divide, while steady 5G deployments are likely to boost end-user experience. T is focused on business transformation efforts to augment operational efficiency and facilitate optimum resource utilization to enhance shareholder value and lower operating costs.
AT&T has an Earnings ESP of +3.54%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last seven days. T recorded earnings surprises in the last four reported quarters, with an average beat of 5.8%. The company is set to release earnings results on Oct 19, before the opening bell.
Marsh & McLennan Companies Inc. (MMC - Free Report) is well-poised to grow on the back of acquisitions made within its operating units, the launch of new products and branching out into new businesses. Revenues of MMC have been increasing thanks to a wide geographic presence and strong client retention. We expect the top line to grow 7.8% year over year in 2023. The Risk and Insurance Services unit of MMC has been contributing to revenue growth. Solid cash flows enable business investments.
Marsh & McLennan has an Earnings ESP of +0.56%. It has an expected earnings growth rate of 12.4% for the current year. MMC recorded earnings surprises in the last four reported quarters, with an average beat of 3.4%. The company is set to release earnings results on Oct 19, before the opening bell.
Image: Bigstock
5 Large-Cap Stocks Likely to Win Big on Earnings This Week
The third-quarter 2023 earnings season started last week. Major banks and other financial institutions were the first to report their quarterly financial numbers. The season has begun with weak expectations as the market’s benchmark — the S&P 500 Index — is likely to witness the fourth consecutive quarter of earnings decline.
As of Oct 13, total earnings of the S&P 500 Index are likely to decline 1.3% year over year on 0.8% higher revenues. However, our current projection has shown that this reporting cycle is expected to be the last period of declining earnings for the S&P 500 Index, with positive growth resuming from the fourth quarter. In this regard, the guidance given by management will be of utmost importance.
Meanwhile, we have selected five large-cap stocks that are set to beat on third quarter earnings this week.
Stocks in Focus
We have narrowed our search to five U.S. corporate bigwigs that are poised to beat on third-quarter earnings results this week. Each of these stocks carries a Zacks Rank #3 (Hold) 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 anticipated to appreciate after their 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 five stocks in the last quarter.
Image Source: Zacks Investment Research
Crown Castle Inc.’s (CCI - Free Report) portfolio of wireless communication infrastructure assets in the United States is poised to benefit from the capital spending by wireless carriers to deploy 4G and 5G networks amid incremental customer demand, rise in mobile data usage and higher spectrum availability.
CCI’s efforts to increase its small cell count to 10,000 in 2023 to meet this growing demand seem encouraging. Also, CCI’s long-term leases with a solid and creditworthy tenant base assure steady revenues.
Crown Castle has an Earnings ESP of +0.70%. The company is set to release earnings results on Oct 18, after the closing bell.
Fifth Third Bancorp’s (FITB - Free Report) diverse revenue base and strategic acquisitions will likely drive top-line growth in the upcoming period. We project total revenues to reflect a CAGR of 2.1% over the next three years. A decent deposit and loan balance will support FITB’s balance sheet growth.
We estimate both metrics to rise 1.6% in 2023. Moreover, given ample liquidity and a decent capital position, FITB’s capital distribution activities seem sustainable and will keep enhancing shareholders’ value.
Fifth Third Bancorp has an Earnings ESP of +0.44%. FITB recorded earnings surprises in two out of the last four reported quarters, with an average beat of 0.9%. The company is set to release earnings results on Oct 19, before the opening bell.
American Express Co. (AXP - Free Report) has benefited from several growth initiatives, such as launching new products, reaching new agreements and forging alliances. We expect the top line at around $60.8 billion in 2023. Consumer spending on T&E, which carry higher margins for AXP, is advancing well. AXP’s balance sheet looks strong with manageable debt. Solid cash-generation abilities enable the pursuit of business investments and prudent deployment of capital.
American Express has an Earnings ESP of +0.60%. It has an expected earnings growth rate of 13% for the current year. The company is set to release earnings results on Oct 20, before the opening bell.
AT&T Inc. (T - Free Report) is likely to benefit from a customer-centric business model, a lower churn rate and higher-tier unlimited plans. Solid growth momentum of T in the postpaid wireless business and an integrated fiber expansion strategy are expected to help bridge the digital divide, while steady 5G deployments are likely to boost end-user experience. T is focused on business transformation efforts to augment operational efficiency and facilitate optimum resource utilization to enhance shareholder value and lower operating costs.
AT&T has an Earnings ESP of +3.54%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last seven days. T recorded earnings surprises in the last four reported quarters, with an average beat of 5.8%. The company is set to release earnings results on Oct 19, before the opening bell.
Marsh & McLennan Companies Inc. (MMC - Free Report) is well-poised to grow on the back of acquisitions made within its operating units, the launch of new products and branching out into new businesses. Revenues of MMC have been increasing thanks to a wide geographic presence and strong client retention. We expect the top line to grow 7.8% year over year in 2023. The Risk and Insurance Services unit of MMC has been contributing to revenue growth. Solid cash flows enable business investments.
Marsh & McLennan has an Earnings ESP of +0.56%. It has an expected earnings growth rate of 12.4% for the current year. MMC recorded earnings surprises in the last four reported quarters, with an average beat of 3.4%. The company is set to release earnings results on Oct 19, before the opening bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.