Buy 4 Stocks Set To Beat Earnings Estimates This Week
Zacks Investment Research | Oct 30, 2019 08:00AM ET
Wall Street is witnessing an impressive rally in October after a mixed third quarter. Aside from positive development on the U.S.-China trade war front and reduction in geopolitical concerns, better-than-expected third-quarter earnings results are major drivers of the Wall Street bull run, pushing the benchmark S&P 500 Index to a new all-time high.
So far, more than 200 S&P 500 companies have reported earnings results. Barring a few companies, which have very strong exposure in China, most players provided a fairly stable guidance. Notably, overall guidance is not as disappointing as it was feared initially, easing concerns of a near-term recession.
Better-Than-Expected Third-Quarter Earnings So Far
Third-quarter earnings results so far are not as disappointing as feared. However, the forecast of overall earnings dip is still looming large.
As of Oct 28, 205 S&P 500 members reported third-quarter results. Total earnings for these index members are down 0.2% from the same period last year while revenues increased 4.1%. Notably, 78% companies surpassed EPS estimates while 62% beat revenue estimates.
At present, total third-quarter earnings for the S&P 500 Index are expected to be down 3.3% from the prior-year period while revenues are expected to increase 4.1%. This indicates good improvement from an earnings decline of 5% on 4.2% higher revenues, expected at the beginning of the reporting cycle.
4 Stocks Poised to Beat Earnings Estimates This Week
In line with better-than-expected earnings results, four stocks from retail and consumer discretionary sectors are set to beat earnings this week. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Original post
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