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4 Must-Buy Large-Cap Stocks Set to Beat Q3 Earnings Expectations

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We are in the initial stage of the third-quarter 2024 earnings season. So far, the results have been in line with expectations. Market participants are closely monitoring the third-quarter results to draw conclusions on the health of the U.S. economy.

Several U.S. corporate behemoths will report this month. However, we have selected four large-cap companies carrying the Zacks top rank that are set to beat third-quarter earnings estimates. The combination of a favorable Zacks Rank and a possible earnings beat should drive stock prices in the future.

These four stocks are — Agnico Eagle Mines Ltd. (AEM - Free Report) , Curtiss-Wright Corp. (CW - Free Report) , TransUnion (TRU - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) . 

A Strong Start to Third-Quarter Earnings Season

As of Oct. 18, 71 companies of the broad-market index — the S&P 500 — have reported their quarterly financial numbers. Total earnings of these companies are up 6.3% year over year on 4.8% higher revenues, with 81.7% beating earnings per share (EPS) estimates and 67.6% beating revenue estimates.

Looking at the third quarter as a whole, total earnings for the S&P 500 Index are expected to be up 3% from the same period last year on 4.7% higher revenues. This follows 10.2% year-over-year EPS growth on 5.5% higher revenues in the previous quarter. 

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

4 Stocks to Buy Ahead of Q3 Earnings Results 

We have narrowed our search to four large-cap stocks set to report earnings results this month. Each of these stocks sports a Zacks Rank #1 (Strong 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 (Rank #1 or #2 (Buy)) 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.

The chart below shows the price performance of our four picks in the past three months.

Zacks Investment Research
Image Source: Zacks Investment Research

Agnico Eagle Mines Ltd.

Agnico Eagle Mines is focused on executing projects expected to provide additional production growth. AEM is boosting exploration and reinvesting in assets, focusing on sustainability and efficiency. The Kittila expansion promises cost savings, while acquisitions like Hope Bay and the merger with Kirkland Lake Gold strengthen its market position. 

The merger with Kirkland Lake established AEM as the industry's highest-quality senior gold producer, having an extensive pipeline of development and exploration projects. Higher gold prices are also expected to drive AEM’s margins and cash flows. Strategic diversification mitigates risks, supported by prudent debt management and maintaining financial flexibility.

AEM has an Earnings ESP of +4.69%. The company will report on Oct 30, after the closing bell. 

Robust Earnings Estimate Revisions for AEM Shares

For third-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $1.83 billion, suggesting an improvement of 11.2% year over year and earnings per share of $0.96, indicating an increase of more than 100% year over year. The company reported positive earnings surprises in the last four reported quarters with the average beat being 15.7%.   

Moreover, Agnico Eagle Mines has witnessed positive earnings estimate revisions for 2024 in the last 30 days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 20.4% and 74%, respectively, for revenues and EPS in 2024. Despite this solid growth, the current Zacks Consensus Estimate for 2025 revenues and EPS for AEM reflects an upside of 2.8% and 6.1%, respectively.

Curtiss-Wright Corp.

Curtiss-Wright’s long-term growth opportunities in the global nuclear market remain solid. CW acquired Ultra Energy in June 2024 to further boost its footprint in the nuclear market. Looking ahead, CW expects to witness high-single-digit growth for its commercial nuclear market in 2024. 

Increasing demand for submarine programs, backed by funding from the U.S. administration is also benefitting CW. Curtiss-Wright also holds a strong solvency position. CW has an Earnings ESP of +0.54%. The company will report on Oct 30, after the closing bell. 

CW Stock’s Earnings Estimate Revisions on the Rise

For third-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $756 million, suggesting an improvement of 4.4% year over year and earnings per share of $2.70, indicating an increase of 6.3% year over year. The company reported positive earnings surprises in the last four reported quarters with the average beat being 11.5%.   

Moreover, Curtiss-Wright has witnessed positive earnings estimate revisions for 2024 in the last seven days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 7.1% and 12.7%, respectively, for revenues and EPS in 2024. Despite this solid growth, the current Zacks Consensus Estimate for 2025 revenues and EPS for CW reflects an upside of 5.1% and 7.6%, respectively.

TransUnion

TransUnion’s addressable market includes the burgeoning Big Data and analytics market, which is expanding rapidly. TRU’s huge database is its most distinguishing asset and perhaps the biggest barrier to entry for competitors. Buyouts act as a growth catalyst, helping TRU expand in vertical markets and increase its international footprint.

TRU’s gigantic treasure trove of data is its most distinguishing asset and perhaps the biggest barrier to entry for competitors. Acquiring or building such data involves huge costs, making it extremely difficult for a new company to build the contacts and data that TransUnion already has. TRU has an Earnings ESP of +1.84%. The company will report on Oct 23, before the opening bell. 

Strong Earnings Estimate Revisions for TRU Shares

For third-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $1.06 billion, suggesting an improvement of 9.6% year over year and earnings per share of $1.02, indicating an increase of 12.1% year over year. The company reported positive earnings surprises in three out of the last four reported quarters with the average beat being 5.8%.   

Moreover, TransUnion has witnessed positive earnings estimate revisions for 2024 in the last 30 days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 8.2% and 15.4%, respectively, for revenues and EPS in 2024. Despite this solid growth, the current Zacks Consensus Estimate for 2025 revenues and EPS for TRU reflects an upside of 7.8% and 17.7%, respectively.

Norwegian Cruise Line Holdings Ltd.

Norwegian Cruise Line Holdings is benefiting from strong demand, high pricing and increased booking volumes, leading to record advance ticket sales. NCLH’s focus on fleet expansion efforts and digital initiatives bodes well. 

These factors showcase that NCLH’s strategy is well-aligned with its growth goals and 2026 financial and sustainability targets. Given the substantial progress made so far and current demand expectations, NCLH raised its 2024 full-year guidance. NCLH has an Earnings ESP of +1.29%. The company will report on Oct 31, before the opening bell. 

Impressive Earnings Estimate Revisions for NCLH Stock

For third-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $2.76 billion, suggesting an improvement of 9% year over year and earnings per share of $0.94, indicating an increase of 23.7% year over year. The company reported positive earnings surprises in three out of the last four reported quarters with the average beat being 5.7%.   

Moreover, Norwegian Cruise Line Holdings has witnessed positive earnings estimate revisions for 2024 in the last 30 days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 9.9% and more than 100%, respectively, for revenues and EPS in 2024. Despite this solid growth, the current Zacks Consensus Estimate for 2025 revenues and EPS for NCLH reflects an upside of 6.8% and 20.3%, respectively.

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