With third-quarter 2016 earnings nearing its end for the S&P 500 Industrial stocks, we see quite an improvement in the sector’s aggregate results. The uncertainties in the global arena that impacted results in the last few quarters seem to have ebbed considerably. In the U.S., industrial production in the quarter grew roughly 1.8% over the year-ago quarter.
Below we briefly discuss Industrial sectors’ earnings trend so far in the third quarter.
Per our latest Earnings Preview report, roughly 95.7% of Industrial stocks that reported their results as of Nov 11 recorded 16.1% growth in earnings while revenue inched down by 0.3%. Considering the results of all Industrial stocks in the S&P 500 Group, earnings for the sector are predicted to increase 10.6%, while revenue will increase 0.1%.
What’s in Store for 2 Industrial Stocks, ZBRA, MNGA, for Third-Quarter 2016?
Below we discuss briefly the expectations from the two industrial stocks scheduled to report their numbers tomorrow:
Zebra Technologies Corporation (ZBRA - Free Report) : The company recorded better-than-expected results in three of four trailing quarters, with an average positive earnings surprise of 12.11%.
Our proven model does not conclusively show that Zebra Technologies Corporation will beat earnings this quarter as it currently carries a 0.00% Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate) and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For a possible earnings beat, the company should have the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #1, #2 (Buy) or #3.
Over the last 60 days, the Zacks Consensus Estimate for Zebra Technologies Corporation increased 0.8% to $1.31 for the quarter.
Magnegas Corporation (MNGA - Free Report) : The company recorded lower-than-expected results in the second quarter, while reporting in-line results in the first. Average earnings surprise for the last two quarters is a negative 10%.
Our proven model does not conclusively show that Magnegas Corporation will beat earnings this quarter because it currently carries a Zacks Rank #3 and a 0.00% Earnings ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock remained stable at loss of 5 cents.
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