Science & Technology
Science and Technology
Science and Technology
Tue, October 19, 2010
Mon, October 18, 2010
CHICAGO--([ BUSINESS WIRE ])--Zacks.com releases the list of companies likely to issue earnings surprises. This weeka™s list includes: Apple (Nasdaq: [ AAPL ]), Caterpillar (NYSE: [ CAT ]), Freeport McMoRan (NYSE: [ FCX ]) and Temple Inland (NYSE: [ TIN ]) and Pension World (Nasdaq: [ PNSN ]). To see more earnings analysis, visit [ http://at.zacks.com/?id=3207 ].
"Earnings estimate revisions are the most powerful force impacting stock prices."
Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to [ http://at.zacks.com/?id=3567 ].
The Flood Begins
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.
Potential Positive Surprises
Apple (Nasdaq: [ AAPL ]) is expected to report EPS of $4.03 vs. $2.77 a year ago. Last time out AAPL had a positive surprise of 13.96% and over the last month analysts have raised their expectations for the about to be reported quarter by 2.08%. AAPL is a Zacks #1 Ranked stock.
Caterpillar (NYSE: [ CAT ]) is expected to report EPS of $1.08 vs. $0.64 a year ago. Last time out, CAT had a positive surprise of 16.47% and over the last month analysts have raised their expectations for the about to be reported quarter by 2.53%. CAT is a Zacks #1 Ranked stock.
Freeport McMoRan (NYSE: [ FCX ]) is expected to report EPS of $2.04 vs. $2.07 a year ago. Last time out FCX had a positive surprise of 7.97% and over the last month analysts have raised their expectations for the about to be reported quarter by 16.09%. FCX is a Zacks #1 Ranked stock.
Potential Negative Surprises
Temple Inland (NYSE: [ TIN ]) is expected to report EPS of $0.40 vs. $0.24 a year ago. Last time out, TIN had a negative surprise of 38.7% and over the last month analysts have cut their expectations for the about to be reported quarter by 5.96%. TIN is a Zacks #5 Ranked stock.
Pension World (Nasdaq: [ PNSN ]) is expected to report a loss of $0.04 vs. EPS of $0.15 a year ago. Last time out PNSN had a negative surprise of 160% (reported a loss when a gain when positive earnings were expected) and over the last month analysts have cut their expectations for the about to be reported quarter by 100% (the expected loss doubled). PNSN is a Zacks #5 Ranked stock.is expected to report EPS of $2.04 vs. $2.07 a year ago. Last time out FCX had a positive surprise of 7.97% and over the last month analysts have raised their expectations for the about to be reported quarter by 16.09%. FCX is a Zacks #1 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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About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to [ http://at.zacks.com/?id=3568 ].
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