5 Top Must-Buy Stocks Set to Beat on Q1 Earnings This Week
Zacks Investment Research | Apr 20, 2020 06:34AM ET
The first-quarter 2020 earnings season has been set in full motion. However, corporate earnings are expected to suffer significantly on account of the coronavirus outbreak that spread like wildfire across the United States and all over the world in the second half of the first quarter.
Global economic activities came almost to a standstill in March as either partial or full lockdowns were imposed. In the absence of any vaccine or line of treatment, enforcing of social distancing was the only option to curb the spread of the deadly virus.
Despite the coronavirus-induced economic disaster and stock market turmoil, five stocks with a favorable Zacks Rank are set to beat first-quarter earnings estimates this week.
Disappointing Economic Data in Q1
Several disappointing data revealed how badly the U.S. economy was hurt in the first quarter due to lockdowns, both domestic and international. In March, unemployment soared to 10 million and retail sales plunged by 8.7%, marking the highest ever monthly decline. Industrial production slipped 5.4%, the largest decline since 1946 and the manufacturing sector was down 6.3%. The ISM Manufacturing index contracted and the services index witnessed a sharp decline.
Moreover, U.S. home-building activity collapsed in March with housing starts plunging 22.3%. This was the worst monthly decline since the 1980s. Building permits declined 6.8% and consumer confidence witnessed a stiff decline.
The 11-year long historic bull run of Wall Street came to end on early March with all the three major stock indexes entering the bear market. In fact, several corporate giants warned about stiff business decline and withdrew their previously issued rosy outlook for 2020.
As of Apr 17, 47 S&P 500 members reported first-quarter 2020 earnings results. Total earnings of these companies are down 31.1% from the same period last year on 2.9% higher revenues. Of the total, 68.1% surpassed EPS estimates and an equivalent proportion outpaced revenue estimates. Overall, first-quarter earnings for the S&P 500 Index were projected to be down 14.1% year over year on 1.2% higher revenues. (Read More: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.