Back to top

Image: Bigstock

3 Stocks Likely to Beat Earnings Estimates This Week

Read MoreHide Full Article

A strong global economy and newly-passed tax laws in the U.S. have brought new attention to the bottom lines of the world’s most powerful companies, and although Q4 report season will not feel all of the effects of these new forces, investors are certainly focused intently on the latest earnings announcements right now.

The wave of fourth-quarter earnings reports is only just picking up, but so far Wall Street has been impressed. Through Friday’s pre-market announcements, 44 members of the S&P 500 had reported, tallying an average earnings growth rate of 11.4% on 7.5% higher revenues.

Of course, investors are always looking to find companies that are poised to post better-than-expected earnings results and experience strong post-earnings gains.

Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat. Zacks Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst estimates.

This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.

A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.

Today, we are giving our readers a very special treat: a free look at three of the strongest stocks that are popping up on our Earnings ESP Screener right now. Check them out:

1.       Johnson & Johnson (JNJ)

Johnson & Johnson is one of the world’s largest manufacturers of pharmaceuticals and personal healthcare items. The company is scheduled to release its fiscal fourth-quarter earnings report before the market opens on Jan. 23. JNJ is currently sporting a Zacks Rank #3 (Hold) and has an Earnings ESP of +0.58%.

Based on our latest consensus estimates, we expect to see Johnson & Johnson report earnings of $1.72 per share and revenues of $20.22 billion. These results would represent year-over-year growth of 9% and 12%, respectively.


2.       Las Vegas Sands Corp. (LVS - Free Report)

Las Vegas Sands is a casino operator. The company’s property portfolio includes the historic Venetian Resort, the Sands Expo and Convention Center, and the Venetian Macau. Las Vegas Sands is scheduled to release its latest quarterly results after the closing bell on Jan. 24. LVS is currently a Zacks Rank #2 (Buy) and has an Earnings ESP of +5.19%.

According to our latest consensus estimates, Las Vegas Sands is projected to post earnings of $0.77 per share and revenues of $3.21 billion, which would represent year-over-year growth of 24% and 4%, respectively.


3.       SEI Investments Company (SEIC)

SEI Investments is a leading global provider of asset management and investment technology solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. SEI is scheduled to release its latest report on Jan. 24. The stock is currently a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of +3.28%.

Based on our latest consensus estimates, SEI is expected to report earnings of $0.61 per share and revenues of $398.84 million. These results would represent year-over-year growth of 11% and 8%, respectively.


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

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Las Vegas Sands Corp. (LVS) - free report >>