5 Must-Buy Stocks Ahead Of Earnings Results This Month
Zacks Investment Research | Aug 18, 2019 09:38PM ET
Wall Street is reeling under severe volatility since the beginning of August due to uncertainty related to trade-related conflicts, which resulted in the inversion of the main treasury yield curve.
Yields on the 2-year and the 10-year U.S. Treasury Notes inverted on Aug 14, for the first time since December 2005, raising concerns about an impending recession in the U.S. economy. However, the yield curve steadied the next day.
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 this month.
Second-Quarter 2019 Earnings Results at a Glance
As of Aug 16, 460 S&P 500 members reported second-quarter earnings results. Total earnings for these 460 index members are up 0.4% from the same period last year on 4.8% higher revenues. Notably, 75.2% companies surpassed EPS estimates while 57.2% beat revenue estimates.
At present, total second-quarter earnings for the S&P 500 Index are expected to be up 0.2% from the prior-year period on 4.7% 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: Zacks Investment Research
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