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.
5 Stocks to Buy Ahead of Earnings Results This Month
Read MoreHide Full Article
We are in the second phase of the fourth-quarter 2023 earnings season. Results are, so far, mostly in line with expectations. Next week will be the busiest this reporting cycle, with as many as 808 companies slated to report their quarterly financial numbers.
As of Feb 11, 338 companies on the S&P 500 Index reported their financial numbers. Total earnings for these 285 index members are up 5.5% from the same period last year on 3.7% higher revenues, with 80.5% beating EPS estimates and 65% beating revenue estimates.
At present, total earnings of the S&P 500 Index in fourth-quarter 2023 are expected to be up 4.9% on 3.1% higher revenues. This would follow 3.8% earnings growth on 2% higher revenues in the third quarter and three back-to-back quarters of declining earnings before that.
Meanwhile, five stocks with a favorable Zacks Rank are set to beat on earnings this month. The combination of a favorable Zacks Rank and a possible earnings beat should drive their stock prices in the near term.
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 their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Thec chart below shows the price performance of our five picks in the last quarter.
Image Source: Zacks Investment Research
Toast Inc. (TOST - Free Report) operates a cloud-based digital technology platform for the restaurant industry in the United States and Ireland. TOST offers Toast POS, a software module that integrates payment processing with point-of-sale functionality, Toast Invoicing, which allows restaurants to send invoices and collect payment, Toast Mobile Order & Pay, Kitchen Display System software that connects the house with the kitchen staff, and Multi-Location Management.
TOST also provides Toast Flex, hardware for on-counter order and pay, Toast Go, an integrated handheld POS device, Toast Tap, a card reader for accepting EMV-contactless payments, Toast Online Ordering & Toast TakeOut, First-Party Delivery, POS integration for restaurants using third-party delivery services to order intake and eliminate the need for extra third-party tablets, and loyalty, email marketing, and Toast Gift Cards services.
Toast has an Earnings ESP of +52.38%. It has an expected earnings growth rate of 25.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the last 30 days. Toast is set to release earnings results on Feb 15, after the closing bell.
NVIDIA Corp. (NVDA - Free Report) is gaining from the strong growth of AI, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds for NVDA. The collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in the autonomous vehicles and other automotive electronics space. We expect NVDA’s revenues to witness a CAGR of 53.7% through fiscal 2024-2026.
NVIDIA has an Earnings ESP of +5.26%. It has an expected earnings growth rate of 64.4% for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last seven days.
NVIDIA recorded earnings surprises in the last four reported quarters, with an average beat of 19%. The company is set to release earnings results on Feb 21, after the closing bell.
Wingstop Inc. (WING - Free Report) franchises and operates restaurants. WING’s operating segment consists of the Franchise and Company segments. WING offers cooked-to-order, hand-sauced and tossed chicken wings.
Wingstop has an Earnings ESP of +0.20%. It has an expected earnings growth rate of 19% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.5% over the last 30 days.
Wingstop recorded earnings surprises in the last four reported quarters, with an average beat of 28.9%. The company is set to release earnings results on Feb 21, before the opening bell.
ONEOK Inc. (OKE - Free Report) is well-poised to gain from increasing volumes in its pipelines and fee-based commitments as production volumes are rising. OKE’s expansion efforts and pipeline additions are expected to strengthen its position in the high-production region and aid future earnings. OKE’s organic initiatives and diverse customer base act as tailwinds. OKE has enough financial flexibility to meet its near-term debt obligations.
ONEOK has an Earnings ESP of +2.97%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last seven days. ONEOK recorded earnings surprises in the last four reported quarters, with an average beat of 6%. The company is set to release earnings results on Feb 26, after the closing bell.
Western Midstream Partners LP (WES - Free Report) operates as a midstream energy company primarily in the United States. WES is involved in gathering, compressing, treating, processing, and transporting natural gas, gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil, and gathering and disposing produced water. WES also buys and sells natural gas, NGLs, and condensate.
Western Midstream Partners has an Earnings ESP of +4.01%. It has an expected earnings growth rate of 25.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days.
Western Midstream Partners recorded earnings surprises in two out of the last four reported quarters, with an average beat of 1.8%. The company is set to release earnings results on Feb 21, after the closing bell.
Image: Bigstock
5 Stocks to Buy Ahead of Earnings Results This Month
We are in the second phase of the fourth-quarter 2023 earnings season. Results are, so far, mostly in line with expectations. Next week will be the busiest this reporting cycle, with as many as 808 companies slated to report their quarterly financial numbers.
As of Feb 11, 338 companies on the S&P 500 Index reported their financial numbers. Total earnings for these 285 index members are up 5.5% from the same period last year on 3.7% higher revenues, with 80.5% beating EPS estimates and 65% beating revenue estimates.
At present, total earnings of the S&P 500 Index in fourth-quarter 2023 are expected to be up 4.9% on 3.1% higher revenues. This would follow 3.8% earnings growth on 2% higher revenues in the third quarter and three back-to-back quarters of declining earnings before that.
Meanwhile, five stocks with a favorable Zacks Rank are set to beat on earnings this month. The combination of a favorable Zacks Rank and a possible earnings beat should drive their stock prices in the near term.
Our Top Picks
We have narrowed our search to five stocks that are poised to beat on earnings this month. 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 (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 their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Thec chart below shows the price performance of our five picks in the last quarter.
Image Source: Zacks Investment Research
Toast Inc. (TOST - Free Report) operates a cloud-based digital technology platform for the restaurant industry in the United States and Ireland. TOST offers Toast POS, a software module that integrates payment processing with point-of-sale functionality, Toast Invoicing, which allows restaurants to send invoices and collect payment, Toast Mobile Order & Pay, Kitchen Display System software that connects the house with the kitchen staff, and Multi-Location Management.
TOST also provides Toast Flex, hardware for on-counter order and pay, Toast Go, an integrated handheld POS device, Toast Tap, a card reader for accepting EMV-contactless payments, Toast Online Ordering & Toast TakeOut, First-Party Delivery, POS integration for restaurants using third-party delivery services to order intake and eliminate the need for extra third-party tablets, and loyalty, email marketing, and Toast Gift Cards services.
Toast has an Earnings ESP of +52.38%. It has an expected earnings growth rate of 25.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the last 30 days. Toast is set to release earnings results on Feb 15, after the closing bell.
NVIDIA Corp. (NVDA - Free Report) is gaining from the strong growth of AI, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds for NVDA. The collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in the autonomous vehicles and other automotive electronics space. We expect NVDA’s revenues to witness a CAGR of 53.7% through fiscal 2024-2026.
NVIDIA has an Earnings ESP of +5.26%. It has an expected earnings growth rate of 64.4% for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last seven days.
NVIDIA recorded earnings surprises in the last four reported quarters, with an average beat of 19%. The company is set to release earnings results on Feb 21, after the closing bell.
Wingstop Inc. (WING - Free Report) franchises and operates restaurants. WING’s operating segment consists of the Franchise and Company segments. WING offers cooked-to-order, hand-sauced and tossed chicken wings.
Wingstop has an Earnings ESP of +0.20%. It has an expected earnings growth rate of 19% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.5% over the last 30 days.
Wingstop recorded earnings surprises in the last four reported quarters, with an average beat of 28.9%. The company is set to release earnings results on Feb 21, before the opening bell.
ONEOK Inc. (OKE - Free Report) is well-poised to gain from increasing volumes in its pipelines and fee-based commitments as production volumes are rising. OKE’s expansion efforts and pipeline additions are expected to strengthen its position in the high-production region and aid future earnings. OKE’s organic initiatives and diverse customer base act as tailwinds. OKE has enough financial flexibility to meet its near-term debt obligations.
ONEOK has an Earnings ESP of +2.97%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last seven days. ONEOK recorded earnings surprises in the last four reported quarters, with an average beat of 6%. The company is set to release earnings results on Feb 26, after the closing bell.
Western Midstream Partners LP (WES - Free Report) operates as a midstream energy company primarily in the United States. WES is involved in gathering, compressing, treating, processing, and transporting natural gas, gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil, and gathering and disposing produced water. WES also buys and sells natural gas, NGLs, and condensate.
Western Midstream Partners has an Earnings ESP of +4.01%. It has an expected earnings growth rate of 25.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days.
Western Midstream Partners recorded earnings surprises in two out of the last four reported quarters, with an average beat of 1.8%. The company is set to release earnings results on Feb 21, after the closing bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.