U.S. stocks are on track to finish the week basically flat, as rate hike and trade war uncertainty gave way to positive economic data amid the drama on Capitol Hill. The major indexes are now sitting just below their all-time highs, and with Q3 earnings season, it feels like a pivotal moment for Wall Street and our historic bull market.
Just a few weeks ahead of the bulk of the reporting, Q3 results look like they should be strong. Earnings expansion is projected to be in double-digit percentages for 10 out of the 16 sectors defined by Zacks for the Q3 period. Energy, Finance, Construction, Basic Materials, and Technology are expected to see the strongest growth, while Conglomerates and Autos are estimated to see modest declines.
With that said, the easiest way to prepare for this period is with the Zacks Earnings Calendar. This handy tool is your perfect one-stop-shop to properly prepare for earnings, dividend announcements, and other important financial releases.
We are not quite to the beginning of the traditional Q3 reporting season, but next week will feature a number of marquee earnings announcements. So what should investors be on the watch for? Let’s take a closer look at a few of the market's major reports due during the week of October 1.
1. Stitch Fix, Inc. (SFIX - Free Report)
Stitch Fix is a trendy, relatively young personal shopping e-commerce platform. The company offers subscription boxes of custom-sorted apparel to online users. Stitch Fix sports a Zacks Rank #2 (Buy) and is set to release its latest quarterly results after the closing bell on October 1. Shares are up over 100% in the six months leading up to the report.
According to our latest Zacks Consensus Estimates, analysts expect Stitch Fix to report earnings of $0.04 per share and revenue of $318.90 million. We do not have year-over-year comparisons on these figures, as the company went IPO in late 2017.
2. Pepsico, Inc. (PEP - Free Report)
Beverage behemoth Pepsico is scheduled to announce its most recent quarterly financial figures before the market opens on October 2. The stock is basically flat on the year, although shares have rallied from 52-week lows reached in early May. PEP is holding a Zacks Rank #3 (Hold) ahead of the report.
Based on our most recent estimates, we expect Pepsico to post earnings of $1.56 per share and revenue of $16.38 billion. These results would represent year-over-year growth rates of 5.4% and 0.9%, respectively. Pepsico’s consensus earnings projection has trended downward over the duration of the quarter, but the company did see one positive estimate revision this week.
3. Costco Wholesale Corporation (COST - Free Report)
Big box discount retailer Costco is slated to release its latest earnings report after the market closes on October 4. COST shares have rallied nearly 25% so far this year. The stock is holding a Zacks Rank #3 (Hold) less than one week from its report. However, earnings estimates for the soon-to-be-reported quarter have trended upward in the past 30 days.
Our Zacks Consensus Estimate for earnings is calling for profits of $2.34 per share, which would represent year-over-year growth of 12.5%. Meanwhile, revenue is expected to come in at $44.40 billion, up about 5.0% from last year.
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