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This week, Tracey is joined by Zacks Director of Research, Sheraz Mian, to discuss what Zacks earnings data is telling us about the upcoming earnings season. Be sure to watch the video format of this podcast.

Earnings Data to Keep an Eye On

Energy earnings are expected to be down 39.7% in the third quarter but if you strip it out, the other 15 sectors are expected to see earnings growth of 3.1% on 3.5% higher revenue.

Additionally, estimates have increased for 6 out of the 16 Zacks sectors since the quarter began. These were Tech, Construction, Autos, Medical, Retail and Industrials.

Earnings estimates for Q4 and 2024 are also improving.

You can read all about the latest earnings data in Sheraz’s latest article: Q3 Earnings Season Kicks Off.

5 Stocks to Watch this Earnings Season

1.      NVIDIA Corp. (NVDA - Free Report)

NVIDIA reports late in the earnings season so it’s going to be a few months before we hear from it again. But the analysts have been revising their estimates over the last 2 months. 15 have been revised higher for this fiscal year during that time, with none revised lower.

NVIDIA is expected to see earnings growth of 219% this fiscal year. NVIDIA’s earnings trend is bullish.

NVIDIA is a Zacks Rank #1 (Strong Buy).

2.      Meta Platforms (META - Free Report)

Meta Platforms also has seen its earnings estimates move higher for 2023 in the last 90 days. The Zacks Consensus is now looking for $13.24 up from $11.90 just 3 months ago.

Meta Platforms made $9.83 per share last year so this would be earnings growth of 35.7%. It’s attractively priced with a forward P/E of just 22.9.

Meta Platforms reports earnings on Oct 25, after the market close.

3.      Amazon.com, Inc. (AMZN - Free Report)

Amazon has staged a big earnings turnaround in 2023. Earnings are expected to be up 214% to $2.23 versus just $0.71 last year. The full year consensus has also been on the move higher, jumping to $2.23 from $1.56 in the last 90 days.

Analysts are not bearish on Amazon. No estimates have been cut in the last 60 days for the full year.

Amazon shares still aren’t cheap. It trades with a forward P/E of 56.9.

Amazon is a Zacks Rank #1 (Strong Buy).

4.      JPMorgan Chase (JPM - Free Report)

JPMorgan Chase shares are down 2.7% over the last month. The stock is cheap, at 8.9x. There is a gloom around the banks heading into earnings season, but should there be?

JPMorgan Chase is expected to see earnings grow 33% in 2023. The Zacks Consensus has jumped to $16.05 from $14.37 in the last 90 days. It made just $12.09 in 2022.

Should JPMorgan Chase be on your short list?

5.      Sterling Infrastructure (STRL - Free Report)

Sterling Infrastructure is a company to watch this earnings season. It has business in some of the hottest areas of infrastructure, including data centers. Analysts are bullish about Sterling. Over the last 60 days, the full year Zacks Consensus has jumped to $4.09 from $3.52. That’s earnings growth of 29.4% from 2022.

Sterling Infrastructure is still attractively valued, with a forward P/E of 17.9.

Sterling Infrastructure is a Zacks Rank #1 (Strong Buy). Tracey owns it in the Zacks Value Investor portfolio.

What Else do you Need to Know About the Third Quarter Earnings Season?

Running Length: 00:36:45

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