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Top 7 Stocks Set to Beat on Earnings Today After Market

Nalak Das
·5 mins read

We are in the middle of the busiest week of the coronavirus-stricken second-quarter 2020 earnings season. The results so far are rather disappointing mainly due to the lockdowns. Each and every sector of the economy has faced coronavirus-induced devastations. Nevertheless, seven top-ranked companies are poised to beat on earnings today after the closing bell.

A Brief Review of Q2

U.S. GDP plunged 32.9% in second-quarter 2020, marking its worst-ever quarterly decline, with the previous low witnessed in the second quarter of 1921. Notably, in the first quarter, the economy declined by 5% year over year.

Economic activities were way below last year in the second quarter since lockdowns continued for nearly two months till the third week of May. Meanwhile, by mid-June, all 50 states reopened their economies in some form or the other.

However, a second wave of COVID-19 in some states since the second half of June forced them to again close some parts of their economies in less than a month. So, with businesses mostly remaining closed in the April-June quarter, the economy suffered significantly.

7 Top Stocks Set to Beat Earnings Estimates Today

We have narrowed down our search to seven stocks that are slated to report earnings results today after market close. 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 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to soar after earnings release. 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 seven picks in the last quarter.

 

Fiserv Inc. FISV provides information management systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, business process outsourcing, software and systems solutions. The company has an Earnings ESP of +3.14%.

Fiserv has an expected earnings growth rate of 10.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.2% over the last 30 days. It has a trailing four-quarter earnings surprise of 0.2%, on average.

Medifast Inc. MED manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products in the United States and the Asia-Pacific. The company has an Earnings ESP of +2.53%.

Medifast has an expected earnings growth rate of 19% for the current year. The Zacks Consensus Estimate for the current year has improved by 3.2% over the last 30 days. It has a trailing four-quarter earnings surprise of 14.8%, on average.

ResMed Inc. RMD develops, manufactures, distributes, and markets medical devices and cloud-based software solutions that diagnose, treat, and manage respiratory disorders and other chronic diseases. It operates through two segments, Sleep and Respiratory Care, and Software as a Service. The company has an Earnings ESP of +20.93%.

ResMed has an expected earnings growth rate of 2.4% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.7% over the last 30 days. It has a trailing four-quarter earnings surprise of 14.7%, on average.

Camping World Holdings Inc. CWH operates as an outdoor and camping retailer. It operates through three segments: Consumer Services and Plans, Dealership and Retail. The company has an Earnings ESP of +35.4%. Camping World has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved by 69.6% over the last 30 days.

Global Blood Therapeutics Inc. GBT is a clinical-stage biopharmaceutical company that  is engaged in the discovery, development, and delivery of treatments for underserved patient communities. The company has an Earnings ESP of +2.69%. Global Blood Therapeutics has an expected earnings growth rate of 5.9% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.4% over the last 7 days.

Cimarex Energy Co. XEC operates as an independent oil and gas exploration and production company primarily in Texas, Oklahoma and New Mexico. The company has an Earnings ESP of +1.90%. The Zacks Consensus Estimate for Cimarex Energy's current-year earnings has improved 111% over the last 30 days. It has a trailing four-quarter earnings surprise of 0.7%, on average.

Fastly Inc. FSLY offers cloud computing, image optimization, security, edge computer technology and streaming solutions. The company has an Earnings ESP of +27.27%. Fastly has an expected earnings growth rate of 75% for the current year. It has a trailing four-quarter earnings surprise of 20.8%, on average.

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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
 
Fiserv, Inc. (FISV) : Free Stock Analysis Report
 
ResMed Inc. (RMD) : Free Stock Analysis Report
 
Camping World Holdings Inc. (CWH) : Free Stock Analysis Report
 
Cimarex Energy Co (XEC) : Free Stock Analysis Report
 
MEDIFAST INC (MED) : Free Stock Analysis Report
 
Global Blood Therapeutics, Inc. (GBT) : Free Stock Analysis Report
 
Fastly, Inc. (FSLY) : Free Stock Analysis Report
 
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