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The Zacks Analyst Blog Highlights: SL Green Realty, American Express, Hill-Rom, Invesco and LPL Financial

Zacks Equity Research

For Immediate Release

Chicago, IL – January 16, 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: SL Green Realty Corp. SLG, American Express Co. AXP, Hill-Rom Holdings Inc. HRC, Invesco Ltd. IVZ and LPL Financial Holdings Inc. LPLA.

Here are highlights from Wednesday’s Analyst Blog:

5 Momentum Stocks Set to Beat Earnings Estimates This Month

Momentum investing calls for a continuous appraisal of stocks, which ensures that an investor does not pick a beaten-down name and overlook a thriving one. Momentum investors buy high on the anticipation that the stock will only ascend in the short to intermediate term.

We believe the recent stock market upsurge presents an ideal buying opportunity for momentum investors. The market is highly anticipated to continue its bullish run driven by a stable U.S. economy, an accommodative Fed and the signing of an interim trade deal between the United States and China.

Expectations for fourth-quarter 2019 earnings are far from encouraging at present. Total earnings of the S&P 500 Index are anticipated to be down 3.6% from the same period last year on 3.2% higher revenues. However, one thing must be noticed here. Although corporate earnings growth were negative year over year in the first three quarters, results were far better than initially anticipated.

Fourth Quarter at a Glance

In the fourth quarter of 2019, the Dow gained 6%, the S&P 500 rose 8.5% and the Nasdaq rose 12.2%. The last three months of the year were quite promising for Wall Street as the U.S.-China trade war finally seemed to ease and strong economic data boosted investors’ sentiments.

The U.S. economy is on a stable footing. Strong consumer spending, which constitutes 70% of the GDP, a firm labor market, a historically low-level of unemployment, steady growth in wage rate and a housing-market revival bolstered investors’ sentiments and are likely to reflect on earnings results. Notably, in the first three quarters of 2019, the GDP growth rate was more than 2%.

Moreover, after remaining quiet in the first half of 2019, the central bank reduced the benchmark interest rate by 75 basis points in three equal trenches in the second half of last year. Fed’s timey intervention not only boosted the economy and raised investors’ confidence, but also helped the sagging U.S. housing market to recover with a low mortgage rate.

5 Momentum Stocks Poised to Beat Earnings Estimates

We have narrowed down our search to five momentum stocks slated to release earnings reports this month that have a positive Earnings ESP. Each of our picks carries a Zacks Rank #2 (Buy) and a Momentum Score of A or B.  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%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

SL Green Realty Corp.is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. The company has an Earnings ESP of +0.46% for fourth-quarter 2019.

The company has an expected earnings growth of 2.2% for the current year. The Zacks Consensus Estimate for the current year has improved 0.8% over the last 30 days. SL Green Realty will release earnings results on Jan 22, after the closing bell.

American Express Co.provides charge and credit payment card products, and travel-related services to consumers and businesses worldwide. It operates through three segments: Global Consumer Services Group, Global Commercial Services and Global Merchant. The company has an Earnings ESP of +0.41% for fourth-quarter 2019.

The company has an expected earnings growth of 10.9% for the current year. The Zacks Consensus Estimate for the current year has improved 0.2% over the last 30 days. American Express will release earnings results on Jan 24, before the opening bell.

Hill-Rom Holdings Inc.operates as a medical technology company worldwide. It operates in Patient Support Systems, Front Line Care and Surgical Solutions segments. The company has an Earnings ESP of +1.54% for the first quarter of fiscal 2020.

Hill-Rom has an expected earnings growth of 8.9% for the current year (ending September 2020). The Zacks Consensus Estimate for the current year has improved 0.2% over the last 30 days. Hill-Rom will release earnings results on Jan 24, before the opening bell.

Invesco Ltd.provides its investment management services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions and sovereign wealth funds. The company has an Earnings ESP of +3.40% for fourth-quarter 2019.

The company has an expected earnings growth of 4.6% for the current year. The Zacks Consensus Estimate for the current year has improved 2.6% over the last 30 days. Invesco will release earnings results on Jan 29, before the opening bell.

LPL Financial Holdings Inc.provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. The company has an Earnings ESP of +1.36% for fourth-quarter 2019.

The company has an expected earnings growth of 1.9% for the current year. The Zacks Consensus Estimate for the current year has improved 1.4% over the last 30 days. LPL Financial will release earnings results on Jan 30, 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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LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
 
Invesco Ltd. (IVZ) : Free Stock Analysis Report
 
American Express Company (AXP) : Free Stock Analysis Report
 
Hill-Rom Holdings, Inc. (HRC) : Free Stock Analysis Report
 
SL Green Realty Corporation (SLG) : Free Stock Analysis Report
 
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