The Zacks Analyst Blog Highlights: Netflix, ASML, PNC Financial Services, Kinder Morgan And United Rentals
Zacks Investment Research | Jul 17, 2019 07:55AM ET
For Immediate Release
Chicago, IL – July 17, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix Inc. (NASDAQ:NFLX) , ASML Holding (AS:ASML) N.V. (NASDAQ:ASML) , The PNC Financial Services Group Inc. (NYSE:PNC) , Kinder Morgan Inc. (NYSE:KMI) and United Rentals Inc. (NYSE:URI) .
Here are highlights from Tuesday’s Analyst Blog:
5 Large-Cap Stocks Poised to Beat on Q2 Earnings
Wall Street is on a dream run since the beginning of this year, resulting in a complete turnaround from a disappointing 2018. All three major stock indexes, predominantly consisting of large-cap stocks, witnessed the best first half of any year in more than two decades. Year to date, the Dow, S&P 500 and Nasdaq Composite have rallied 17.3%, 20.2% and 24.5%, respectively.
While the stock market rally in the first quarter was primarily driven by expectations of a U.S.-China trade deal, the Fed’s rate cut signal was the main driving force for U.S. stocks in the second quarter. The rally is continuing from the beginning of July, as major indexes are achieving fresh all-time highs every week. However, bleak expectation from the second-quarter earnings session raised questions on the sustainability of this rally.
Will Second-Quarter Earnings Mar Wall Street Rally?
At present, the market is anticipating a negative earnings session for the second quarter of 2019. As of Jul 12, total Q2 earnings for the S&P 500 Index are expected to be down 3.4% from the year-earlier period on 3.9% higher revenues.
This would follow the 0.2% earnings decline on 4.5% higher revenues in Q1. Notably, despite earnings decline, first-quarter performance was far better than what was initially expected. Nevertheless, if the current consensus estimate for the second-quarter proves itself true, it will be two consecutive quarters of earnings decline for the S&P 500.
As of Jul 12, 23 S&P 500 members have reported second-quarter results. For these companies, total earnings are down 12.8% from the same period last year on 3.1% higher revenues, with 83.3% beating EPS estimates and 62.5% beating revenue estimates. (Read More: Zacks Investment Research
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