U.S. markets closed
  • S&P 500

    4,163.26
    -22.21 (-0.53%)
     
  • Dow 30

    34,077.63
    -123.04 (-0.36%)
     
  • Nasdaq

    13,914.77
    -137.58 (-0.98%)
     
  • Russell 2000

    2,232.00
    -30.67 (-1.36%)
     
  • Crude Oil

    63.55
    +0.17 (+0.27%)
     
  • Gold

    1,771.10
    +0.50 (+0.03%)
     
  • Silver

    25.87
    +0.03 (+0.13%)
     
  • EUR/USD

    1.2042
    +0.0001 (+0.01%)
     
  • 10-Yr Bond

    1.6010
    +0.0280 (+1.78%)
     
  • GBP/USD

    1.3991
    +0.0007 (+0.05%)
     
  • USD/JPY

    108.1570
    +0.0070 (+0.01%)
     
  • BTC-USD

    55,839.10
    -519.10 (-0.92%)
     
  • CMC Crypto 200

    1,273.66
    -25.30 (-1.95%)
     
  • FTSE 100

    7,000.08
    -19.45 (-0.28%)
     
  • Nikkei 225

    29,685.37
    +2.00 (+0.01%)
     

Top 5 Large-Cap Stocks Set to Beat Earnings Results This Week

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Nalak Das
·5 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Fourth-quarter 2020 earnings are in full swing with better-than-expected results on board. Strong overall earnings results and future guidance will support the current stock market valuation, which a section of economists and financial experts have already characterized as overvalued.

Meanwhile, five large-cap (market capital > $10 billion) stocks with a favorable Zacks Rank are poised to beat earnings estimates this week. Investment in these stocks should be fruitful going forward.

Better-Than-Expected Fourth-Quarter Earnings Results So Far

As of Feb 5, 292 S&P 500 companies reported their quarterly results. Total earnings of these companies were up 4.9% from the same period last year on 2.4% higher revenues, with 80.5% beating EPS estimates and 79.5% beating revenue estimates.

Overall, the fourth-quarter earnings for the S&P 500 Index are projected to be up 2.2% year over year on 2.5% higher revenues. This is in contrast to the projection of a 7.8% decline in earnings on 0.3% higher revenues at the beginning of the reporting cycle.

Notably, first-quarter earnings were down 12.8% year over year on 1.6% higher revenues. Second-quarter earnings plunged 32.2% on 9.3% lower revenues. Third-quarter earnings dropped 7% year over year on 0.7% lower revenues. The fourth-quarter earnings estimates were improving steadily since July 2020. (Read More: Q4 Earnings Growth Turns Positive)

Our Top Picks

We have narrowed down our search to five large-cap stocks slated to release earnings results this week. Each of these stocks carries a Zacks Rank #2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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 anticipated to appreciate after the earnings releases. 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 last quarter.

Take-Two Interactive Software Inc. TTWO develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games and 2K labels, as well as under the Private Division and Social Point labels. The company has an Earnings ESP of +16.11% for third-quarter fiscal 2021 (ended December).

Take-Two Interactive has an expected earnings growth rate of 2.4% for the current year (ending March 2021). The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 7 days. It has a trailing four-quarter earnings surprise of 49%, on average. The company is set to release earnings results on Feb 8, after the closing bell.

Fox Corp. FOXA operates as a news, sports, and entertainment company in the United States. It operates through the Cable Network Programming, Television, and Other, Corporate and Eliminations segments. The company has an Earnings ESP of +145.46% for second-quarter fiscal 2021 (ended December).

The Zacks Consensus Estimate for Fox Corp.'s current-year earnings has improved 2.7% over the last 30 days. It has a trailing four-quarter earnings surprise of 106.6%, on average. The company is set to release earnings results on Feb 9, before the opening bell.

Carrier Global Corp. CARR provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies worldwide. It operates through three segments: HVAC, Refrigeration, and Fire & Security. The company has an Earnings ESP of +10.96% for fourth-quarter 2020.

Carrier Global has an expected earnings growth rate of 12.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.6% over the last 30 days. It has a trailing four-quarter earnings surprise of 48.7%, on average. The company is set to release earnings results on Feb 9, before the opening bell.

CDW Corp. CDW provides integrated IT solutions to business, government, education and healthcare customers in the United States, the U.K. and Canada. The company has an Earnings ESP of +3.40% for fourth-quarter 2020.

CDW has an expected earnings growth rate of 6.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 7 days. It has a trailing four-quarter earnings surprise of 11.1%, on average. The company is set to release earnings results on Feb 10, before the opening bell.

Sun Life Financial Inc. SLF is a financial services company providing insurance, wealth and asset management solutions to individuals and corporate clients worldwide. It operates through five segments: Sun Life Financial Canada, Sun Life Financial United States, Sun Life Financial Asset Management, Sun Life Financial Asia and Corporate. The company has an Earnings ESP of +12.50% for fourth-quarter 2020.

The Zacks Consensus Estimate for Sun Life's current-year earnings has improved 1.5% over the last 30 days. It has a trailing four-quarter earnings surprise of 14.8%, on average. The company is set to release earnings results on Feb 10, after the closing bell.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Sun Life Financial Inc. (SLF) : Free Stock Analysis Report

CDW Corporation (CDW) : Free Stock Analysis Report

Carrier Global Corporation (CARR) : Free Stock Analysis Report

To read this article on Zacks.com click here.