Buy 5 Top Stocks Poised To Beat Earnings Estimates This Week

The fourth-quarter 2019 earnings releases have been showing steady improvement so far. Below we discuss five top-ranked mid-cap stocks that are poised to beat earnings estimates this week.

Better-Than-Expected Fourth-Quarter Earnings So Far

Fourth-quarter 2019 earnings results have been improving significantly. In fact, overall earnings expectations have rebounded and are in positive territory. As of Feb 14, 388 S&P 500 members reported fourth-quarter earnings results. Total earnings of these companies are up 1.3% from the same period last year on 4.8% higher revenues. Of the total, 72.9% surpassed EPS estimates while 66.2% outpaced revenue estimates.

Overall, fourth-quarter 2019 earnings for the S&P 500 Index were projected to be up 0.8% year over year on 4.3% higher revenues. This suggests a complete turnaround from earnings decline of 3.2% year over year 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 this week. Each of these stocks carry either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP

Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to soar after earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The chart below shows the price performance of our five picks in the past three years.

Jack in the Box Inc. (JACK - Free Report) is a restaurant company that operates and franchises through Jack in the Box quick-service restaurants and is one of the nation’s largest hamburger chains. The company has an Earnings ESP of +1.56% for first-quarter fiscal 2020 (ended December).

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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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