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5 Must-Buy Stocks Ahead of Q3 Earnings This Week

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Wall Street bulls are raging since the beginning of 2019 after a disappointing 2018. Despite severe market fluctuations and concerns about global and U.S. economic slowdown, third-quarter 2019 results so far have not been as disappointing as expected initially. However, overall earnings are still expected to dip.

Better-Than-Expected Third-Quarter Earnings So Far    

Third-quarter earnings results so far are not as disappointing as feared. As of Nov 1, 357 S&P 500 members reported third-quarter results. Total earnings for these index members are down 1.9% from the same period last year while revenues increased 3.6%. Notably, 74.5% companies surpassed EPS estimates while 59.7% beat revenue estimates.

At present, total third-quarter earnings for the S&P 500 Index are expected to be down 2.5% from the prior-year period while revenues are expected to increase 4.1%. This indicates improvement from an earnings decline of 5% on 4.2% higher revenues, expected at the beginning of the reporting cycle. Moreover, overall guidance so far fairly stable and is not indicating recession anytime soon. (Read More: A Reassuring Q3 Earnings Picture)

5 Stocks Poised to Beat Earnings Estimates This Week

Below are five stocks set to beat earnings estimates this week. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The chart below shows price performance of our five picks in the past six months.

 

Kinross Gold Corp. (KGC - Free Report) is engaged in the acquisition, exploration and development of gold properties in the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania. It is also involved in the reclamation of gold mining properties, and production and sale of silver. The Zacks Rank #1 stock has an Earnings ESP of +2.50% for the third quarter of 2019. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross Gold has an expected earnings growth rate of 300% and 210% for the current quarter and year, respectively. The Zacks Consensus Estimate for the current quarter and year has improved 14.3% and 10.7%, respectively, over the last 30 days.

The company delivered positive earnings surprise in two of the last four quarters, with an average beat of 66.7%. Kinross Gold is expected to release earnings results on Nov 6, after the closing bell.

Activision Blizzard Inc. (ATVI - Free Report) develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. It operates through three segments: Activision Publishing Inc., Blizzard Entertainment Inc., and King Digital Entertainment. The Zacks Rank #1 stock has an Earnings ESP of +24.30% for the third quarter of 2019.

The Zacks Consensus Estimate for the current quarter has improved 4.2% over the last 30 days. The company delivered positive earnings surprise in the last four quarters, with an average beat of 18%. Activision Blizzard is expected to release earnings results on Nov 7, after the closing bell.

Manulife Financial Corp. (MFC - Free Report) provides financial advice, insurance, and wealth and asset management solutions for individuals, groups, and institutions in Asia, Canada, and the United States. The Zacks Rank #2 stock has an Earnings ESP of +1.07% for the third quarter of 2019.

Manulife Financial has an expected earnings growth rate of 5.7% for the current year. The Zacks Consensus Estimate for the current year has improved 0.9% over the last 30 days. The company delivered positive earnings surprise in two of the last four quarters, with an average beat of 5%. Manulife Financial is expected to release earnings results on Nov 6, after the closing bell.

Vulcan Materials Co. (VMC - Free Report) is engaged in the production, distribution and sale of construction aggregates and other construction materials in the U.S. and Mexico. The company has four operating segments going by the principal product lines: Aggregates, Concrete, Asphalt mix and Calcium. The Zacks Rank #2 stock has an Earnings ESP of +8.24% for the third quarter of 2019.

Vulcan Materials has an expected earnings growth rate of 21.4% and 20.3% for the current quarter and year, respectively. The Zacks Consensus Estimate for the current quarter and year has improved 1.2% and 0.6%, respectively, over the last 30 days.

The company delivered positive earnings surprise in the last four quarters, with an average beat of 14.6%. Vulcan Materials is expected to release earnings results on Nov 6, before the opening bell.

Seaspan Corp. (SSW - Free Report) operates as an independent charter owner and manager of containerships in Hong Kong. It charters its containerships under long-term and fixed-rate time charters to various container liner companies. The Zacks Rank #2 stock has an Earnings ESP of +29.40% for the third quarter of 2019.

The Zacks Consensus Estimate for the current quarter and year has improved 6.3% and 2.8%, respectively, over the last 30 days. The company delivered positive earnings surprise in the last four quarters, with an average beat of 20.4%. Seaspan is expected to release earnings results on Nov 7, before the opening bell.

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