For Immediate Release
Chicago, IL – January 31, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PotlatchDeltic Corp. PCH, RenaissanceRe Holdings Ltd. RNR, Royal Gold Inc. RGLD, NGL Energy Partners LP NGL and Silicon Motion Technology Corp. SIMO.
Here are highlights from Thursday’s Analyst Blog:
5 Must-Buy Top Stocks Poised to Gain on Earnings Next Week
The fourth-quarter earnings season is in full swing and earnings trends are showing improvement. Although corporate earnings growth was negative year over year in the first three quarters of last year, results were far better than initially anticipated. Below we will discuss how the reporting cycle is faring and present five stocks that are poised to beat earnings estimates next week.
Fourth-Quarter Earnings Results Improving
Fourth-quarter 2019 earnings results are improving gradually. However, overall earnings are still expected to dip.
As of Jan 29, 141 S&P 500 members reported fourth-quarter earnings results. Total earnings of these companies are down 0.6% from the same period last year on 2.7% higher revenues. Of the total, 70.2% surpassed EPS estimates while 68.8% outpaced revenue estimates.
As of Jan 29, fourth-quarter 2019 earnings for the S&P 500 Index were projected to be down 2.3% year over year on 3.9% higher revenues. This suggests good improvement from earnings decline of 3.2% in fourth-quarter 2018 on 3.5% higher revenues, projected at the beginning of the reporting cycle. (Read More:Earnings Outlook Improving)
5 Stocks Set to Surpass Earnings Estimates
We have narrowed down our search to five companies that are gearing up to release their earnings results next week. Each of these stocks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank 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 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.
PotlatchDeltic Corp.is a Real Estate Investment Trust with acres of timberland in Alabama, Arkansas, Idaho, Minnesota and Mississippi. The Zacks Rank #2 company has an Earnings ESP of +15% for the fourth quarter.
PotlatchDeltic has an expected earnings growth rate of 42.5% for the current year. The Zacks Consensus Estimate for the current year has improved 1% over the last 30 days. The last four-quarter positive earnings surprise is 44%, on average. PotlatchDeltic is set to release earnings results on Feb 3, after the closing bell.
RenaissanceRe Holdings Ltd.provides reinsurance and insurance products in the United States and internationally. It operates through Property & Casualty and Specialty segments. The Zacks Rank #2 company has an Earnings ESP of +18.32% for the fourth quarter.
RenaissanceRe has an expected earnings growth rate of 56.7% for the current year. The Zacks Consensus Estimate for the current year has improved 0.2% over the last 30 days. The last four-quarter positive earnings surprise is 23.3%, on average. RenaissanceRe is set to release earnings results on Feb 4, after the closing bell.
Royal Gold Inc.acquires and manages precious metals stream and royalty interests, with a primary focus on gold. The Zacks Rank #1 company has an Earnings ESP of +0.78% for the second quarter of fiscal 2020 (ended December).
Royal Gold has an expected earnings growth rate of 83.5% for the current year (ending June 2020). The Zacks Consensus Estimate for the current year has improved 2.3% over the last 30 days. Royal Gold is set to release earnings results on Feb 5, after the closing bell.
NGL Energy Partners LPis engaged in the crude oil logistics, water solutions, liquids, and refined products and renewables businesses. The Zacks Rank #1 company has an Earnings ESP of +36.84% for the third quarter of fiscal 2020 (ended December). The Zacks Consensus Estimate for the current year has improved 6.7% over the last 30 days. NGL Energy is set to release earnings results on Feb 6, before the opening bell.
Silicon Motion Technology Corp.designs, develops and markets NAND flash controllers for solid state storage devices worldwide. The Zacks Rank #1 company has an Earnings ESP of +5.88% for the fourth quarter.
Silicon Motion has an expected earnings growth rate of 28.2% for the current year. The Zacks Consensus Estimate for the current year has improved 3.6% over the last 30 days. The last four-quarter positive earnings surprise is 13.4%, on average. Silicon Motion is set to release earnings results on Feb 6, after the closing bell.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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NGL Energy Partners LP (NGL) : Free Stock Analysis Report
Potlatch Corporation (PCH) : Free Stock Analysis Report
Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report
RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report
Royal Gold, Inc. (RGLD) : Free Stock Analysis Report
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