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.
Can Comerica (CMA) Maintain its Earnings Beat Streak in Q2?
Read MoreHide Full Article
Comerica Incorporated (CMA - Free Report) is scheduled to report second-quarter 2017 results before the opening bell on Jul 18. Its revenues and earnings are expected to grow year over year.
The company boasts a decent earnings surprise history. It surpassed earnings estimates in each of the trailing four quarters, with an average positive surprise of 8.7%.
These earnings beats along with fundamental strength helped Comerica’s shares gain 10.2% year to date, outperforming the Zacks categorized Banks – Major Regional industry’s 6.2% rally.
Will the rally in stock price continue post second-quarter earnings release? It majorly depends on whether the firm is able to maintain its trend of beating earnings estimates.
Our proven model shows that Comerica has the right combination of two key ingredients – positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings beat.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +4.67%. This is a major indicator of a likely positive earnings surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Comerica’s Zacks Rank #2 (Buy) when combined with a positive ESP makes us reasonably confident of an earnings beat.
Factors to Drive Better-than-Expected Results
Easing Pressure on Net Interest Margin (NIM): The interest rate hike by the Federal Reserve in Mar 2017, followed by another in Jun 2017 might be successful in easing some margin pressure. However, the contraction in the three-month/10-year Treasury spread might offset some benefits.
Growth in Average Loan Balance: Comerica’s average loans are likely to increase given a seasonal rebound in the mortgage banker finance. Further, clearing of some uncertainties related to Trump’s policies and a slightly better lending scenario was witnessed in the second quarter.
Lower Fee income: Owing to the decline in M&As and equity issuance activities in the quarter, Comerica’s fee income might witness some pressure.
Effective Cost Saving Initiatives: Expenses might trend downward in the upcoming release due to the company’s GEAR Up expense savings initiatives.
Activities of Comerica during the quarter were inadequate to win analysts’ confidence. Over the last seven days, the Zacks Consensus Estimate for the quarter’s earnings remained stable at $1.07.
Other Stocks that Warrant a Look
Here are some other stocks you may want to consider, as they have the right combination of elements to post an earnings beat this quarter.
Fifth Third Bancorp’s (FITB - Free Report) Earnings ESP is +2.38% and it carries a Zacks Rank #3. The company is expected to release second-quarter results on Jul 21.
Huntington Bancshares Incorporated (HBAN - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #3. It is scheduled to report second-quarter results on Jul 21.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Can Comerica (CMA) Maintain its Earnings Beat Streak in Q2?
Comerica Incorporated (CMA - Free Report) is scheduled to report second-quarter 2017 results before the opening bell on Jul 18. Its revenues and earnings are expected to grow year over year.
The company boasts a decent earnings surprise history. It surpassed earnings estimates in each of the trailing four quarters, with an average positive surprise of 8.7%.
These earnings beats along with fundamental strength helped Comerica’s shares gain 10.2% year to date, outperforming the Zacks categorized Banks – Major Regional industry’s 6.2% rally.
Comerica Incorporated Price and EPS Surprise
Comerica Incorporated Price and EPS Surprise | Comerica Incorporated Quote
Will the rally in stock price continue post second-quarter earnings release? It majorly depends on whether the firm is able to maintain its trend of beating earnings estimates.
Our proven model shows that Comerica has the right combination of two key ingredients – positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings beat.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +4.67%. This is a major indicator of a likely positive earnings surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Comerica’s Zacks Rank #2 (Buy) when combined with a positive ESP makes us reasonably confident of an earnings beat.
Factors to Drive Better-than-Expected Results
Easing Pressure on Net Interest Margin (NIM): The interest rate hike by the Federal Reserve in Mar 2017, followed by another in Jun 2017 might be successful in easing some margin pressure. However, the contraction in the three-month/10-year Treasury spread might offset some benefits.
Growth in Average Loan Balance: Comerica’s average loans are likely to increase given a seasonal rebound in the mortgage banker finance. Further, clearing of some uncertainties related to Trump’s policies and a slightly better lending scenario was witnessed in the second quarter.
Lower Fee income: Owing to the decline in M&As and equity issuance activities in the quarter, Comerica’s fee income might witness some pressure.
Effective Cost Saving Initiatives: Expenses might trend downward in the upcoming release due to the company’s GEAR Up expense savings initiatives.
Activities of Comerica during the quarter were inadequate to win analysts’ confidence. Over the last seven days, the Zacks Consensus Estimate for the quarter’s earnings remained stable at $1.07.
Other Stocks that Warrant a Look
Here are some other stocks you may want to consider, as they have the right combination of elements to post an earnings beat this quarter.
Citizens Financial Group, Inc. (CFG - Free Report) is slated to report second-quarter results on Jul 21. It has an Earnings ESP of +1.70% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fifth Third Bancorp’s (FITB - Free Report) Earnings ESP is +2.38% and it carries a Zacks Rank #3. The company is expected to release second-quarter results on Jul 21.
Huntington Bancshares Incorporated (HBAN - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #3. It is scheduled to report second-quarter results on Jul 21.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>