For Immediate Release
Chicago, IL – August 13, 2018 - Stocks in this week’s article are Molina Healthcare Inc MOH, Caterpillar Inc. CAT, Fortinet Inc. FTNT and GATX Corporation GATX.
Bet on 5 Stocks With Strong Earnings Beat Prospects
Investors are always hunting for estimate-beating stocks before an earnings release. This is because investors always try to place themselves ahead of time and look to play stocks that are rich in quality and have high chances of beating earnings estimates.
Why Is a Positive Earnings Surprise So Important?
Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, 20% earnings rise (though apparently looks good) doesn’t tell you if it has been decelerating.
Also, seasonal fluctuations can come into play. If a company’s Q1 is seasonally weak and Q4 is strong, it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company.
On the other hand, after a whole lot of research and analysis on a company’s financials and initiatives, Wall Street analysts project its earnings. They also take a company’s guidance into consideration when deriving an earnings estimate.
How to Locate Potential Outperformers?
Now, finding stocks that have the potential to beat on the bottom line is a dream that investors chase but might not always come true. One way of fulfilling it is by looking at the earnings surprise history of a company.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/317359/bet-on-5-stocks-with-strong-earnings-beat-prospects
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GATX Corporation (GATX) : Free Stock Analysis Report
Fortinet, Inc. (FTNT) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Molina Healthcare, Inc (MOH) : Free Stock Analysis Report
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