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Zacks.com featured expert Kevin Matras highlights: BJ's Restaurants, Restoration Hardware, Yelp, ArcBest and Under Armour

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For Immediate Release

Chicago, IL – January 11, 2019– Stocks in this week’s article include BJ's Restaurants Inc. (BJRI - Free Report) , Restoration Hardware Holdings Inc. (RH - Free Report) , Yelp Inc. (YELP - Free Report) , ArcBest Corp. (ARCB - Free Report) and Under Armour Inc. (UAA - Free Report) . Kevin Matras screens for companies showing their 'first' profit and explains why they are ones to watch.

Screen of the Week written by Kevin Matras of Zacks Investment Research:

Top 5 Stocks to Beat Q4 Earnings Estimates

Tapping stocks that come up with solid earnings is a common practice. But instead of picking them post earnings, investing in those that are like to beat market expectations may increase your gains manifolds.

Why Is Positive Earnings Surprise So Important?

Historically, stocks of companies with solid quarterly earnings (on a nominal basis) fall if they miss or just meet market expectations. After all, a 20% earnings rise (though it looks good apparently) doesn’t tell you if earnings growth has been exhibiting a decelerating trend. If that is the case, the company’s fundamentals are in question.

There is also the factor of seasonal fluctuation. If a company’s Q1 is seasonally weak and Q4 is strong, it is likely to report a sequential earnings decline. In such cases, growth rates are ambiguous while judging the company’s true health.

Meanwhile, Wall Street analysts study companies’ financials and initiatives to forecast earnings. They in fact club their insights and the company’s guidance to arrive at an earnings estimate. So, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as market perception. And if the company manages to surpass earnings by a wide margin, it typically drives the stock higher right after the release.

How to Find Those Gems?

Since it is hard to predict if a company will beat or miss in the upcoming earnings season, investors can check its earnings surprise history. A notable track record generally acts as a tailwind. It revs up chances of beating estimates in the next release too as investors expect the company to use the same old trick to surpass expectations, or is smart enough to pull off a beat in the next release.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/346644/top-5-stocks-with-solid-earnings-beat-potential

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

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 more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% 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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.



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