American Tower, Expeditors International, Tenent Health, Dean Foods and Electronic Arts
CHICAGO--([ BUSINESS WIRE ])--Zacks.com releases the list of companies likely to issue earnings surprises. This weeka™s list includes American Tower (NYSE: [ AMT ]), ExpeditorsInternational (Nasdaq: [ EXPD ]), Tenent Health (NYSE: [ THC ]), Dean Foods (NYSE: [ DF ]) and Electronic Arts (Nasdaq: [ ERTS ]).
"Earnings estimate revisions are the most powerful force impacting stock prices."
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Employment, Earnings to Share Spotlight
Earnings season will be still going strong next week. There will be 1,161 firms reporting, including 106 S&P 500 firms. The firms reporting are some of the biggest and most important bellwethers of the economy, and slice across a wide spectrum of industries. By the end of the week, more than seven-eighths of the earnings will be in for the S&P 500.
In addition to earnings there will also be a very busy week for economic data. We start with Construction Spending and end the week with the all-important employment report on Friday. In between, we get both the ISM Manufacturing and Service surveys, personal Income and Spending and Auto Sales. More than enough data on the economic front to significantly move the markets.
Potential Positive Surprises
Historically the best indicators of firms likely to report positive surprises are a recent history of positive surprises and rising estimates going into the report. The Zacks Rank is also a good indicator of potential surprises. While normally firms that report better-than-expected earnings rise in reaction, that has not been the case so far this quarter.
American Tower (NYSE: [ AMT ]) is expected to report EPS of $0.20 versus $0.13 a year ago. Last time out AMT beat the consensus by 33.3%, and over the last four weeks the mean estimate has risen by 0.29%. AMT is a Zacks #2 Ranked stock.
Expeditors International (Nasdaq: [ EXPD ]) is expected to report EPS of $0.39 versus $0.25 a year ago. Last time out EXPD beat the consensus by 3.6% and over the last four weeks the mean estimate has gone up by 28.3%. EXPD is a Zacks #1 Ranked stock.
Tenent Health (NYSE: [ THC ]) is expected to report EPS of $0.06 versus $0.05 a year ago. Last time out THC beat the consensus by 128.6%, and over the last four weeks the mean estimate has gone up by 6.5%. THC is a Zacks #1 Ranked stock
Potential Negative Surprises
Dean Foods (NYSE: [ DF ]) is expected to report EPS of $0.25 versus $0.43 a year ago. Last time out DF disappointed by 17.9%, and over the last four weeks the mean estimate has fallen by 1.2%. DF is a Zacks #4 Ranked stock.
Electronic Arts (Nasdaq: [ ERTS ]) is expected to report a loss of $0.50 versus a loss of $0.12 a year ago. Last time out ERTS reported in line with expectations, and over the last four weeks the mean estimate has dropped by 1.6%. ERTS is a Zacks #5 Ranked stock.
Dirk Van Dijk, CFA, is the Chief Equity Strategist for Zacks.com.
About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have significantly underperformed the S&P 500 (+2% versus +9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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