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6 Top Stocks to Buy Ahead of Earnings Results This Week

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The coronavirus-stricken first-quarter 2020 earnings season has already completed its major part. The disappointing performance by U.S. corporates that started in the beginning of the reporting cycle is still continuing. Despite the negative earnings trend, a handful of stocks with a favorable Zacks Rank are poised to beat earnings estimates this week. We have selected the top six.

First-Quarter Earnings in Brief

As of May 8, 434 S&P 500 members reported first-quarter  earnings results. Total earnings of these companies are down 10.6% from the same period last year on 1.1% higher revenues. Of the total, 67.7% surpassed EPS estimates and 58.3% outpaced revenue estimates. Overall, first-quarter  earnings for the S&P 500 Index were projected to be down 12.8% year over year on 1.3% higher revenues. This is in sharp contrast to 4% earnings growth expected in early January. (Read More: Is Wall Street Oblivious of Main Street Pain?)

Our Top Picks

We have narrowed down our search to six stocks that will release earnings results this week. Each of these stocks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.

Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to soar after earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The chart below shows the price performance of our six picks in the last quarter.

 

Logitech International S.A. (LOGI - Free Report) designs, manufactures and markets products that allow people to connect through music, gaming, video, computing and other digital platforms worldwide. The Zacks Rank # 1 company has an Earnings ESP of +8.33% for the fourth quarter of fiscal 2020.

Logitech International has an expected earnings growth rate of 7.6% for the current year (ending March 2021). The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the last 30 days. It has a trailing four-quarter positive earnings surprise of 9.2%, on average. The company is set to release earnings results on May 11, after the closing bell.

Grocery Outlet Holding Corp. (GO - Free Report) owns and operates a chain of grocery stores primarily in the United States. It offers products such as grocery, dairy and deli, produce, refrigerated and frozen, floral, beer and wine, general merchandise as well as fresh meat and seafood and natural, organic, specialty and healthy products. The Zacks Rank #1 company has an Earnings ESP of +33.33% for first-quarter 2020.

Grocery Outlet has an expected earnings growth rate of 15.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.2% over the last 30 days. It has a trailing four-quarter positive earnings surprise of 31.1%, on average. The company is set to release earnings results on May 11, after the closing bell.

GFL Environmental Inc. (GFL - Free Report) offers non-hazardous solid waste management, infrastructure & soil remediation and liquid waste management services in North America. The Zacks Rank # 2 company has an Earnings ESP of +16.19% for first-quarter 2020. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days. The company is set to release earnings results on May 11, after the closing bell.

Health Catalyst Inc. (HCAT - Free Report) provides data and analytics technology and services to healthcare organizations primarily in the United States. It operates through two segments, Technology and Professional services. The Zacks Rank #1 company has an Earnings ESP of +7.26% for first-quarter 2020.

Health Catalyst has an expected earnings growth rate of 6.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the last 30 days. It has a trailing four-quarter positive earnings surprise of 31%, on average. The company is set to release earnings results on May 12, after the closing bell.

Viela Bio Inc. (VIE - Free Report) is a clinical-stage biotechnology company engaged in the research and development of treatments for severe inflammation and autoimmune diseases in the United States. The Zacks Rank #2 company has an Earnings ESP of +13.04% for first-quarter 2020.

Viela Bio has an expected earnings growth rate of 58.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 30 days. The company is set to release earnings results on May 13, after the closing bell.

SSR Mining Inc. (SSRM - Free Report) is engaged in the acquisition, exploration, development, and operation of precious metal resource properties in the Americas. It primarily explores gold and silver deposits. The Zacks Rank #2 company has an Earnings ESP of +13.57% for first-quarter 2020.

SSR Mining has an expected earnings growth rate of 63% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 18.9% over the last 60 days. It has a trailing four-quarter positive earnings surprise of 77.8%, on average. The company is set to release earnings results on May 14, after the closing bell.

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