5 Top Stocks Set To Beat Earnings Estimates Next Week

Wall Street had a dream run in 2019 wherein all three major stock indexes witnessed the best yearly performance in six years. Although, expectations for fourth-quarter 2019 earnings are negative at present, results so far are far better than initially anticipated. Below we present five stocks that are poised to beat earnings estimates next week.

Fourth-Quarter at a Glance

The final three months of last year were quite promising as the U.S.-China trade war finally seemed to ease and strong economic data boosted investors’ sentiments.

The U.S. economy is on a stable footing. Strong consumer spending, which constitutes 70% of GDP, a strong labor market, a historically low-level of unemployment, steady growth in wage rate and a housing-market revival bolstered investors’ sentiments and are likely to reflect on earnings results.

Moreover, after remaining quiet in the first half of 2019, the central bank reduced the benchmark interest rate by 75 basis points in three equal tranches in the third quarter of last year. Fed’s timey intervention helped the economy, especially the sagging U.S. housing market to recover with a low mortgage rate.

Fourth-Quarter Earnings Results Improving  

As of Jan 29, 141 S&P 500 members reported fourth-quarter earnings results. Total earnings of these companies are down 0.6% from the same period last year on 2.7% higher revenues. Of the total, 70.2% surpassed EPS estimates while 68.8% outpaced revenue estimates.

As of Jan 29, fourth-quarter 2019 earnings for the S&P 500 Index were projected to be down 2.3% year over year on 3.9% higher revenues. This suggests good improvement from earnings decline of 3.2% in fourth-quarter 2018 on 3.5% higher revenues, projected at the beginning of the reporting cycle.

5 Stocks Set to Surpass Earnings Estimates

We have narrowed down our search to five companies that are gearing up to release their earnings results next week. Each of these stocks carries a Zacks Rank #2 (Buy) and has a positive Earnings ESP

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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