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The Zacks Analyst Blog Highlights: Caterpillar, First Solar and Aaron's

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For Immediate Release

Chicago, IL – August 02, 2017 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Caterpillar, Inc. (NYSE:CAT Free Report), First Solar, Inc. (NASDAQ:FSLR Free Report) and  Aaron’s, Inc. (NYSE:AAN Free Report).  

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

3 Strong Buy Stocks that Crushed Earnings Estimates This Season

 It has been a relatively strong earnings season thus far, and although most investors will say that Q2 reports tend to be the most inconsequential, it is encouraging that the markets are touching new all-time highs in the midst of a busy earnings week.

Here at Zacks, our proven Zacks Rank is dependent not only on earnings estimates and estimate revisions, but also actual earnings results. Positive surprises strengthen our outlook on a stock, and of course, one way to ensure positive estimate revisions is by posting strong earnings figures.

With that said, it is always important to target stocks that are moving higher after strong earnings surprises. The post-earnings momentum can last several days or weeks, and a strong outlook can be the catalyst for continued momentum over the course of several months.

Luckily, we can easily pinpoint companies that recently crushed earnings estimates. Check out these three Zacks Rank #1 (Strong Buy) stocks that did just that this earnings season.

1.       Caterpillar, Inc. (NYSE:CATFree Report)

Caterpillar posted adjusted earnings of $1.49 per share, which came in more than 18% higher than the Zacks Consensus Estimate of $1.26 and improved 37% year-over-year. The company recently implemented rigid cost-control strategies, and the bottom line results speak for themselves.

Nevertheless, revenues were up 9.6% to $11.3 billion and exceeded our consensus estimate of $10.9 billion. The company also upped its full-year view, and as a result, shares of this Zacks Rank #1 (Strong Buy) stock have moved nearly 4.6% higher since its report.

2.       First Solar, Inc. (NASDAQ:FSLRFree Report)

First Solar recorded a surprise profit in the most recent quarter, with adjusted earnings of $0.64 coming in well ahead of the Zacks Consensus Estimate, which called for a loss of five cents per share. These results represented a staggering 1,700% positive earnings surprise.

Earnings were lifted by improvements in gross margin and a discrete income tax benefit, but revenues of $623 million were also significantly higher than our consensus estimate of $535.5 million. On top of this, a revenues full-year outlook has helped send shares more than 10% higher since its report was released.

3.       Aaron’s, Inc. (NYSE:AANFree Report)

Despite a tough retail environment, Aaron’s was able to post its fifth-straight earnings beat in the most recent quarter. Indeed, earnings of $0.68 per share surpassed our Zacks Consensus Estimate of $0.58 by a cool 17%.

Revenues of $815.6 million were up about 3.3% year-over-year and above our consensus estimate of $790 million. However, slumping comparable-store sales have kept the stock bogged down since its report, so it will be interesting to see what will happen next.

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release.

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Aaron's, Inc. (AAN) - free report >>

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First Solar, Inc. (FSLR) - free report >>

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