4 Utility Stocks Poised To Outpace Earnings Estimates In Q4

How Q4 Earnings is Shaping Up

As of Feb 13, 357 S&P 500 members released fourth-quarter results. Total earnings for these companies are up 13.4% from the same period last year on 7.3% higher revenues, with 67.2% beating EPS estimates and 62.5% beating revenue estimates.

Most of the Zacks sectors (12 out of 16) are expected to perform well in the fourth quarter of 2018, with overall S&P 500 earnings expected to be up 13.6% from the same period last year on 6.2% higher revenues.

Ways to Pick Winners in the Utility Space

Choosing the right stock for one’s portfolio from too many participants is certainly a tough job. An easy way to streamline the list is by selecting stocks with a positive Earnings ESP and a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which will help in surpassing estimates.

Per our proprietary methodology, Earnings ESP is a determining factor for zeroing in on stocks with a maximum chance of beating on earnings in the next announcement. It shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Please check our Earnings ESP Filter that enables you to come across stocks with the potential to outshine earnings estimates this reporting cycle.

Our research shows that stocks with the perfect combination of the two key ingredients have 70% chances of a positive earnings surprise.

For investors seeking to apply this proven model to their portfolio, we have highlighted four Utility stocks that beat on earnings in the upcoming releases.

Our Utility Picks

The Southern Company (SO - Free Report) has an Earnings ESP of +22.29% and a Zacks Rank #2. The company’s earnings topped estimates in the last four reported quarters, the average positive surprise being 9.53%. The company is slated to release earnings on Feb 20, before market open.

Southern Company (The) Price and EPS Surprise

Southern Company (The) Price and EPS Surprise | Southern Company (The) Quote

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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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