5 High-Flying Stocks Set To Beat On Earnings In Q2 Next Week
Zacks Investment Research | Aug 09, 2019 08:24AM ET
Wall Street is reeling under severe volatility since the beginning of August after a two-month long bull run. All three major stock indexes -- the Dow, the S&P 500 and the Nasdaq Composite -- have lost 1.9%, 1.4% and 1.8%, respectively, so far this month.
A less-than-expected dovish stance taken by the Fed and President Donald Trump’s tweet expressing desire to impose 10% tariff on a new set of $300 billion Chinses goods effective Sep 1, are the two primary factors responsible for volatile trading.
Meanwhile, second-quarter 2019 earnings results have so far come in better than expected. In spite of a prolonged trade conflict with China and limited hope of any near-term solution to the tariff war, there hasn’t been any broad-based decline in earnings although the pace has slowed. In line with better-than-expected earnings reports, five companies are set to beat earnings estimates next week.
Second-Quarter 2019 Earnings Results at a Glance
As of Aug 7, 428 S&P 500 members reported second-quarter earnings results. Total earnings for these 428 index members are up 0.9% from the same period last year on 5.1% higher revenues. Notably, 75.5% companies surpassed EPS estimates while 57% beat revenue estimates.
At present, total second-quarter earnings for the S&P 500 Index are expected to be down 0.3% from the prior-year period on 4.5% higher revenues. This is a massive improvement from an earnings decline of 3.4% on 3.9% higher revenues, expected in the beginning of the second-quarter earnings session.
Notably, Wall Street had witnessed negative earnings (0.2% earnings decline on 4.2% higher revenues) in the first quarter for the first time since the second quarter of 2016. (Read More: Original post
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