For Immediate Release
Chicago, IL – January 16, 2012 – Today, Zacks Investment Ideas feature highlights Features: Herbalife Limited (HLF - Free Report) , Kadant Inc. (KAI - Free Report) and Wyndham Worldwide Corporation (WYN - Free Report) .
3 Earnings Season All-Stars
During earnings season, investors wait with bated breath to see which companies will "meet", "beat", or "miss" the consensus estimate. It is a high stakes game that can whip a stock's share price around if expectations aren't met.
Wouldn't it be great if you could just invest in companies that ALWAYS beat the earnings estimate?
It's not just wishful thinking. There actually are some companies that manage to achieve such a feat, at least over the last 5 years, even though market conditions haven't been easy during that time.
Over the last 5 years, companies have had to endure the worst economy since the Great Depression while managing earnings expectations. When the global economy was falling off a cliff at the end of 2008, it took a lot of management skill to successfully navigate those earnings seasons and come out with a beat quarter after quarter.
These three companies managed to do just that.
Until last quarter, I could have added a fourth company, Apple. But it missed for the first time in over five years so its streak ended.
However, missing only one time in the last 5 years is also impressive given the depth of the financial crisis.
Here are a few companies that have managed to do that:
Oil Services International (OIS)
Yum Brands (YUM)
In addition to beating the estimate, Herbalife, Kadant and Wyndham are all seeing double digit earnings growth in 2011 and are expected to see further growth in 2012.
As we head into another earnings season, will these companies successfully keep their streaks intact for another quarter?
3 Earnings All-Stars
1. Herbalife Limited (HLF - Free Report)
Herbalife sells nutrition products such as protein shakes and snacks, fitness drinks, vitamins and other nutritional supplements through its army of 2.5 million independent distributors in 79 countries.
It is currently a Zacks #3 Rank (Hold) with a forward P/E of just 15.5.
2011 Expected Earnings Growth: 33.2%
2012 Expected Earnings Growth :9.5%
Herbalife is next scheduled to report earnings on Feb 21.
2. Kadant Inc. (KAI - Free Report)
Kadant makes fiber processing products. It supplies systems to the global pulp and paper industries through fluid handling which transfer fluids, steam or air between rotating cylinders and water-management equipment designed to clean fabrics.
Kadant is cheap, with a forward P/E of just 9.5. It is a Zacks #2 Rank (Buy) stock.
2011 Expected Earnings Growth: 50%
2012 Expected Earnings Growth: 13.3%
Kadant is scheduled to report earnings on Feb 22.
3. Wyndham Worldwide Corporation (WYN - Free Report)
Wyndham Worldwide is a hospitality company that operates 55 brands worldwide, including well-known hotel brands such as Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, and English Country Cottages.
This Zacks #3 Rank (Hold) has attractive valuations, with a forward P/E of just 13.6, well under its peers which average a P/E of 20.
2011 Expected Earnings Growth: 22.8%
2012 Expected Earnings Growth: 16.4%
Wyndham is scheduled to report its next earnings report on Feb 8.
While Apple proves that a "miss" can happen at any time, even to the best of them, I like the odds of a beat with any of these companies.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms. It monitors more than 200,000 earnings estimates, looking for changes.
Then when changes are discovered, they’re applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock picking system; the Zacks Rank, continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter Profit from the Pros. In short, it’s your steady flow of profitable ideas GUARANTEED to be worth your time. Get your free subscription to Profit from the Pros at: https://at.zacks.com/?id=7298
Follow us on Twitter: http://twitter.com/ZacksResearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339