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Finance Stocks' Earnings to Watch on Apr 19: MS, USB & More
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The earnings season has started off with a bang. The results released by the finance stocks so far depict an improvement in the industry backdrop. There have been three interest rate hikes since the financial crisis, which are likely to alleviate some pressure on the margins of banks. Further, under President Trump, uncertainty relating to the policies, have driven growth in the trading activities.
Performance of the companies so far reflects a substantial improvement over the prior quarter. Per the latest Zacks Earnings Preview article, overall earnings for the S&P 500 stocks in the Finance sector are expected to increase 11% year over year in the quarter.
Our quantitative model offers some insights into stocks that are about to report their earnings. Per the model, in order to be confident of an earnings beat, a stock needs to have the right combination of the two key ingredients: a positive Earnings ESP and a favorable Zacks Rank – Zacks Rank #3 (Hold) or better. You can see the complete list of today’s Zacks Rank #1(Strong Buy)stocks here.
Let’s see what’s in store for the following finance stocks that are expected to report Jan-Mar 2017 quarter results on Apr 19.
Morgan Stanley (MS - Free Report) is scheduled to release its first-quarter 2017 results before the opening bell. It is less likely to witness an earnings beat this time as the company does not has the right combination. The company is expected to witness a rise in trading income and underwriting fees. These factors might be offset by higher expenses and low advisory fee income. (Read More: What Awaits for Morgan Stanley Stock in Q1 Earnings?)
Further, this Zacks Rank #3 stock surpassed the Zacks Consensus Estimate in each of the trailing four quarters, as reflected in the chart below:
For U.S. Bancorp (USB - Free Report) also, we cannot conclusively predict earnings beat in the quarter as higher expenses and muted loan growth are likely to hurt its financials. However, the company is anticipated to witness top-line growth while pressure on margins is expected to somewhat ease. (Read more: What to Expect When U.S. Bancorp Reports Q1 Earnings?).
This Zacks Rank #3 stock posted an average beat of 1.26% for the trailing four quarters, having beaten the Zacks Consensus Estimate in three, as demonstrated in the chart below:
Likewise, for BlackRock, Inc. (BLK - Free Report) , we are unable to conclusively predict an earnings beat for the quarter. Escalating expenses and price reduction for certain iShares core and fixed income are some of the factors that are expected to affect the results. Nevertheless, it should benefit from strong U.S. iShares inflows during the quarter. (Read more: Can BlackRock Pull Off a Surprise in Q1 Earnings?)
This Zacks Rank #3 stock posted an average beat of 0.76% for the trailing four quarters, having beaten the Zacks Consensus Estimate in two, as demonstrated in the chart below:
For TD Ameritrade Holding Corporation (AMTD - Free Report) , an investment broker, it is less likely to have an earnings beat for the to-be-reported quarter. Mounting expenses and persistent margin pressure might affect the results. However, rise in trading activities and continued asset growth are likely to support the financials. (Read more: Will TD Ameritrade Stock Disappoint in Q2 Earnings?)
The Zacks Rank #4 (Sell) company witnessed a positive earnings surprise in one of the prior four quarters, as demonstrated in the chart below:
TD Ameritrade Holding Corporation Price and EPS Surprise
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>
Unique Zacks Analysis of Your Chosen Ticker
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Finance Stocks' Earnings to Watch on Apr 19: MS, USB & More
The earnings season has started off with a bang. The results released by the finance stocks so far depict an improvement in the industry backdrop. There have been three interest rate hikes since the financial crisis, which are likely to alleviate some pressure on the margins of banks. Further, under President Trump, uncertainty relating to the policies, have driven growth in the trading activities.
Performance of the companies so far reflects a substantial improvement over the prior quarter. Per the latest Zacks Earnings Preview article, overall earnings for the S&P 500 stocks in the Finance sector are expected to increase 11% year over year in the quarter.
Our quantitative model offers some insights into stocks that are about to report their earnings. Per the model, in order to be confident of an earnings beat, a stock needs to have the right combination of the two key ingredients: a positive Earnings ESP and a favorable Zacks Rank – Zacks Rank #3 (Hold) or better. You can see the complete list of today’s Zacks Rank #1(Strong Buy)stocks here.
Let’s see what’s in store for the following finance stocks that are expected to report Jan-Mar 2017 quarter results on Apr 19.
Morgan Stanley (MS - Free Report) is scheduled to release its first-quarter 2017 results before the opening bell. It is less likely to witness an earnings beat this time as the company does not has the right combination. The company is expected to witness a rise in trading income and underwriting fees. These factors might be offset by higher expenses and low advisory fee income. (Read More: What Awaits for Morgan Stanley Stock in Q1 Earnings?)
Further, this Zacks Rank #3 stock surpassed the Zacks Consensus Estimate in each of the trailing four quarters, as reflected in the chart below:
Morgan Stanley Price and EPS Surprise
Morgan Stanley Price and EPS Surprise | Morgan Stanley Quote
For U.S. Bancorp (USB - Free Report) also, we cannot conclusively predict earnings beat in the quarter as higher expenses and muted loan growth are likely to hurt its financials. However, the company is anticipated to witness top-line growth while pressure on margins is expected to somewhat ease. (Read more: What to Expect When U.S. Bancorp Reports Q1 Earnings?).
This Zacks Rank #3 stock posted an average beat of 1.26% for the trailing four quarters, having beaten the Zacks Consensus Estimate in three, as demonstrated in the chart below:
U.S. Bancorp Price and EPS Surprise
U.S. Bancorp Price and EPS Surprise | U.S. Bancorp Quote
Likewise, for BlackRock, Inc. (BLK - Free Report) , we are unable to conclusively predict an earnings beat for the quarter. Escalating expenses and price reduction for certain iShares core and fixed income are some of the factors that are expected to affect the results. Nevertheless, it should benefit from strong U.S. iShares inflows during the quarter. (Read more: Can BlackRock Pull Off a Surprise in Q1 Earnings?)
This Zacks Rank #3 stock posted an average beat of 0.76% for the trailing four quarters, having beaten the Zacks Consensus Estimate in two, as demonstrated in the chart below:
BlackRock, Inc. Price and EPS Surprise
BlackRock, Inc. Price and EPS Surprise | BlackRock, Inc. Quote
For TD Ameritrade Holding Corporation (AMTD - Free Report) , an investment broker, it is less likely to have an earnings beat for the to-be-reported quarter. Mounting expenses and persistent margin pressure might affect the results. However, rise in trading activities and continued asset growth are likely to support the financials. (Read more: Will TD Ameritrade Stock Disappoint in Q2 Earnings?)
The Zacks Rank #4 (Sell) company witnessed a positive earnings surprise in one of the prior four quarters, as demonstrated in the chart below:
TD Ameritrade Holding Corporation Price and EPS Surprise
TD Ameritrade Holding Corporation Price and EPS Surprise | TD Ameritrade Holding Corporation Quote
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>