Per the latest report by the U.S. Energy Information Administration (EIA), almost half of the planned 2022 electric capacity additions in the United States are expected to be solar. In particular, according to EIA’s Preliminary Monthly Electric Generator Inventory report, 46.1 gigawatts (GW) of new utility-scale electric generating capacity is projected to be added to the U.S. power grid, of which 21.5 GW is expected to be solar.

– Zacks

This planned new capacity would exceed 2021’s 15.5 GW of solar capacity additions. This should benefit stocks like Enphase Energy ENPH, ReneSola SOL and First Solar FSLR that have a strong presence in the U.S. solar market.

Factors Driving Increased Solar Capacity

The U.S. solar industry, which was dealt a big blow at the initial stages of the pandemic due to a decline in installation trend, is once again on a solid growth trajectory. Several factors have been boosting the growth of this industry, which we expect to witness this year as well.

While the rapid transition of the entire world toward a net-zero carbon environment driven by growing demand for clean energy has been the primary catalyst bolstering the solar industry, factors like declining price, abundant corporate investment and a booming storage market have been playing a vital role in strengthening the U.S. solar industry lately.

For instance, per the Solar Energy Industry Association’s report (SEIA), as of 2020, the cost to install solar dropped by more than 70% over the last decade. According to SEIA’s latest Solar Means Business Report, U.S. corporate solar investments swelled to 8300 megawatts, growing 20-fold over the last decade.

Per Wood Mackenzie, the United States commands a global leadership position in energy storage and is expected to constitute 40% of the world’s capacity by 2030.  Such developments are surely boosting the U.S. solar industry.

Solar Stocks to Benefit

Considering the aforementioned favorable trends of the U.S. solar industry along with the forward-looking prospects, the following solar stocks are expected to witness growth in the days ahead.

Enphase Energy: Based in Fermont, CA, Enphase designs, develops, manufactures and sells home energy solutions, while microinverters remain this company’s legacy product. At the onset of the fourth quarter of 2021, the company introduced an all-in-one Enphase Energy System with IQ8 solar microinverters for customers in North America. With IQ8 being Enphase’s smartest microinverter, so far, this launch surely expands the revenue growth prospects of the company in the United States.

The Zacks Consensus Estimate for Enphase’s 2022 earnings has improved 15.2% over the past 90 days. ENPH boasts a four-quarter earnings surprise of 29.49% on average.

ReneSola: Based in Stamford, CT, ReneSola is a solar project developer and operator, with robust pipeline projects worldwide. The United States continues to be a large and lucrative market for ReneSola. As of Sep 30, 2021, the company had mid-to-late-stage projects of 464 MW in the United States.

The Zacks Consensus Estimate for Enphase’s 2022 earnings indicates an improvement of 39% from the prior-year estimated figure. SOL boasts a four-quarter earnings surprise of 127.50% on average.

First Solar: Based in Tempe, AZ, First Solar is a leading global provider of comprehensive PV solar energy solutions and specializes in designing, manufacturing, and selling solar electric power modules. The company announced plans to expand its manufacturing capacity by 6.6 GW by constructing its third U.S. manufacturing facility in Ohio. This should enable First Solar to maintain its position as the largest U.S. solar module manufacturer.

First Solar currently boasts a solid long-term earnings growth rate of 10.8%. FSLR has a four-quarter earnings surprise of 19.01% on average.

(We are reissuing this article to correct a mistake. The original article, issued on January 13, 2022, should no longer be relied upon.)

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In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?

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Renesola Ltd. (SOL): Free Stock Analysis Report
 
First Solar, Inc. (FSLR): Free Stock Analysis Report
 
Enphase Energy, Inc. (ENPH): Free Stock Analysis Report
 
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Zacks Investment Research

https://www.entrepreneur.com/article/413636

With thousands of companies about to report their quarterly results as a new earnings season begins, let’s take a look at the Sales & Earnings Growth Winners screen. It starts with Zacks Rank #1s (Strong Buys) and Zacks Rank #2s (Buys), but also seeks out companies with effective management through ROE and good liquidity.
The companies that pass this screen have a history of earnings and sales growth, which makes them likely to continue such success as they go to the plate in the next few weeks. Here are three names on the list right now: 
FedEx Corp. FDX
FedEx Corp. (FDX) and the holiday season is a combination that goes together like peanut butter & jelly; buy & hold; Hall & Oates, etc. It’s a match made in market heaven, which was on display in its fiscal second quarter report from mid-December.
You know what FDX does. Every time you hear a beeping sound, its either an Amazon or FedEx truck. The company provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services.
It operates through the following segments: FedEx Express, TNT Express, FedEx Ground and FedEx Freight. As part of the Transportation – Air Freight and Cargo space, FDX is in the top 4% of the Zacks Industry Rank.
Shares surged more than 12.5% in December as it took advantage of the holiday shopping season despite supply chain disruptions and a challenging labor market.
Fiscal second-quarter earnings per share of $4.83 beat the Zacks Consensus Estimate by more than 14%. Revenue of nearly $23.5 billion jumped 14.2% year over year while also exceeding our expectations by nearly 4.2%.
The company thinks the fiscal second half is looking pretty good, so FDX raised its outlook. Analysts followed suit and increased their estimates over the past 30 days.
The Zacks Consensus Estimate for this fiscal year (ending May 2022) is now up to $20.82, which marks a 7% advance over the past 60 days. Expectations for next fiscal year (ending May 2023) is now $23.22, which advanced 2.9% in the same time and suggests year-over-year improvement of approximately 11.5%.
Another sign of second-half optimism was FDX authorizing a new $5 billion share repurchase program. FDX repurchased about $750 million of its common stock fiscal year to date and ended the fiscal second quarter with $6.8 billion in cash.
Image Source: Zacks Investment Research
D.R. Horton DHI
Home is a good place to be during this pandemic, both literally (for safety) and financially (for big bucks in your portfolio). Robust housing market conditions have been a boon for the space, including major players like D.R. Horton (DHI).
This Zacks Rank #2 (Buy) homebuilder builds and sells single-family houses for entry level and move-up markets. It operates through three segments… and you’d probably never guess that Homebuilding is the biggest piece with nearly 97% of total revenues in fiscal 2020. The other segments are Forestar and Financial Services. Shares are up more than 45% over the past 12 months.
DHI reports again on Feb 2, when it will be going for a 12th straight quarter with a positive earnings surprise. In its fiscal fourth quarter report, earnings per share of $3.70 beat the Zacks Consensus Estimate by 8.8%. Total revenues of $8.1 billion improved 27% year over year and beat our expectation by more than 4%. Homebuilding revenues accounted for $7.63 billion and were up 23.9% year over year.
As for all of fiscal 2022, DHI expects consolidated revenue between $32.5 billion and $33.5 billion. Homes closed is expected at 90K to 92K.
DHI has been successfully dealing with severe disruptions in its supply chain, including restricting the pace of its sales orders. Analysts believe that the company’s upward trajectory should continue, given its industry-leading market share; solid acquisition strategy; well-stocked supply of land, lots and homes; and affordable product offerings across multiple brands.
Over the past 60 days, the Zacks Consensus Estimate for this year (ending September 2022) advanced 2.3% to $14.50. Next year increased in that time by 2.2% to $15.50. Therefore, the year-over-year improvement is currently expected at nearly 7%.
Image Source: Zacks Investment Research
Keysight Technologies KEYS
Our dependence on semiconductors and electronics accelerated dramatically during this pandemic… and it won’t be slowing down anytime soon. In fact, the demand will continue growing exponentially into the future, so we better make sure this stuff works!
That’s what Keysight Technologies (KEYS) is all about. This provider of electronic design and test instrumentation systems is part of the electronics – measuring equipment space, which is in the top 5% of the Zacks Industry Rank.
It’s two segments are the Communications Solutions Group (accounting for 74% of non-GAAP revenues in fiscal 2020) and the Electronic Industrial Solutions Group (26%). Shares of KEYS are up approximately 28% over the past year.
The company topped the Zacks Consensus Estimate for six straight quarters now. Most recently, it reported fiscal fourth quarter earnings per share of $1.82, which beat expectations by 10.3%. Revenues of $1.29 billion improved 6% year over year.
Furthermore, orders increased 21% to $1.49 billion. Revenues at CSG rose 2% year over year to $919 million due to strength in 5G and aerospace, defense and government end-markets. EISG revenues jumped 18% to $375 million thanks to demand for semiconductor measurement solutions and next-generation automotive and energy technologies.
The company attributed the momentum to its software-centric solutions strategy that allows it to capitalize on long-term secular growth trends in its markets. KEYS expects to continue delivering above-market growth moving forward.
Analysts obviously agree as they have raised earnings estimates over the past 60 days. The Zacks Consensus Estimate for this year (ending October 2022) are up 3.1% to $6.91, while the advance for next year (ending September 2023) is 4.3% to $7.54. The expected year-over-year improvement is more than 9% at the moment.
KEYS is in a good position to continue capitalizing on the investment in next generation process technologies by semiconductor companies. The acceleration of 5G deployments and the defense technology modernization are also avenues for growth moving throughout 2022 and beyond.
For its fiscal first quarter, KEYS expects revenues of $1.225 billion to $1.245 billion with non-GAAP earnings between $1.50 and $1.56.
Image Source: Zacks Investment Research

– Zacks

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

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FedEx Corporation (FDX): Free Stock Analysis Report
 
D.R. Horton, Inc. (DHI): Free Stock Analysis Report
 
Keysight Technologies Inc. (KEYS): Free Stock Analysis Report
 
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Zacks Investment Research

https://www.entrepreneur.com/article/413609

Norwegian Cruise Line (NCLH) closed the most recent trading day at $22.96, moving -0.65% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.

– Zacks

Coming into today, shares of the cruise operator had gained 12.94% in the past month. In that same time, the Consumer Discretionary sector lost 1.32%, while the S&P 500 gained 0.64%.

Wall Street will be looking for positivity from Norwegian Cruise Line as it approaches its next earnings report date. The company is expected to report EPS of -$1.69, up 27.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $585.37 million, up 6010.3% from the year-ago period.

Any recent changes to analyst estimates for Norwegian Cruise Line should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 43.67% lower. Norwegian Cruise Line is holding a Zacks Rank of #3 (Hold) right now.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

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Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
 
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Zacks Investment Research

https://www.entrepreneur.com/article/413610

Toyota Motor Corporation (TM) closed the most recent trading day at $210.69, moving -0.32% from the previous trading session. This change lagged the S&P 500’s 0.08% gain on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.

– Zacks

Heading into today, shares of the company had gained 14.48% over the past month, outpacing the Auto-Tires-Trucks sector’s gain of 7.23% and the S&P 500’s gain of 0.64% in that time.

Investors will be hoping for strength from Toyota Motor Corporation as it approaches its next earnings release. On that day, Toyota Motor Corporation is projected to report earnings of $3.74 per share, which would represent a year-over-year decline of 34.04%. Meanwhile, our latest consensus estimate is calling for revenue of $69.27 billion, down 11.25% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $18.92 per share and revenue of $284.84 billion. These totals would mark changes of +26.22% and +10.74%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Toyota Motor Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.45% higher within the past month. Toyota Motor Corporation is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Toyota Motor Corporation currently has a Forward P/E ratio of 11.13. This represents a no noticeable deviation compared to its industry’s average Forward P/E of 11.13.

Investors should also note that TM has a PEG ratio of 0.48 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Automotive – Foreign was holding an average PEG ratio of 0.41 at yesterday’s closing price.

The Automotive – Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TM in the coming trading sessions, be sure to utilize Zacks.com.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

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
 
Toyota Motor Corporation (TM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

https://www.entrepreneur.com/article/413611

iShares U.S. Regional Banks ETF IAT is probably a suitable pick for investors looking for momentum. The fund hit a 52-week high and is up 51.9% from its 52-week low price of $45.90/share.

– Zacks

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed.

IAT in Focus

The iShares U.S. Regional Banks ETF seeks to track the performance of the Dow Jones U.S. Select Regional Banks Index. It has AUM of $1.58 billion and charges an expense ratio of 41 basis points.

Why the Move?

The Federal Reserve has already started tapering bond purchases, which it expects to complete by March this year. The Fed is expected to begin raising its benchmark interest rate in March. The shift toward a tighter monetary policy will push yields higher, thereby helping the financial sector. This is because rising rates will help in boosting profits for banks, insurance companies, discount brokerage firms and asset managers.

The steepening of the yield curve (the difference between short and long-term interest rates) is likely to support banks’ net interest margins. As a result, net interest income, which constitutes a chunk of banks’ revenues, is likely to receive support from the steepening of the yield curve and a modest rise in loan demand. This is making funds like IAT an impressive investment option.

More Gains Ahead?

It seems like the iShares U.S. Regional Banks ETF will remain strong, with a positive weighted alpha of 38.87, which gives cues of a further rally.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.

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iShares U.S. Regional Banks ETF (IAT): ETF Research Reports
 
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Zacks Investment Research

https://www.entrepreneur.com/article/413412

JPMorgan JPM and Citigroup C shares lost ground as they kick-started the Q4 earnings season for the banks. JPMorgan beat EPS estimates, but missed on revenues that were up +1.7% from the same period last year. Citi also missed top-line expectations, with 2021 Q4 revenues down -0.9% from the year-earlier period.

– Zacks

The tone and substance of management commentary about the current and coming periods was cautious, with JPMorgan, in particular, warning about “…a couple of years of sub-target returns.” A notable disappointment for the market was the outlook for costs at JPMorgan, which are expected to reach $77 billion in 2022 up from $71 billion in 2021.

The capital markets business remained red hot, though activity levels in Q4 were below the record levels of the preceding quarters. Trading revenues were down -11% at JPMorgan and -17% at Citigroup, mostly on weakness in fixed income trading.

On the positive side, the outlook for loan demand has been steadily improving, with consumers starting to rely more on credit to sustain spending. The loan portfolio increased +6% at JPMorgan and +3% at Wells Fargo, with the same at Citigroup only modestly above the year-earlier level.

This is a favorable setup for the regional banks that will be reporting December-quarter results in the coming days. And with the outlook for interest rates improving given expectations of multiple Fed rate hikes in 2022, this core banking activity promises to become a lot more profitable than has been the case in recent years.

With respect to the sector’s Q4 earnings season scorecard, we now have results from 17.6% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Finance sector companies are up +3.6% from the same period last year on +1.8% higher revenues, with all the companies beating EPS estimates (100% EPS beats percentage) and 60% beating revenue estimates. 

This is a weaker showing than we have seen from this group of banks in other recent periods, as you can see in the comparison charts below that show how Q4 EPS and revenue beats percentages stack up to other recent periods.

Image Source: Zacks Investment Research

Next week will bring results from Bank of America, Goldman Sachs, Morgan Stanley and all the regional banks. Trends in loan portfolios and the outlook for costs will likely determine how the market responds to those results.

The Overall Earnings Picture

Beyond the Finance sector, the expectation is for Q4 earnings for the S&P 500 index to be up +20.9% from the same period last year on +11.7% higher revenues. This would follow +41.4% earnings growth on +17.3% revenue growth in 2021 Q3.

The chart below takes a big-picture view of S&P 500 quarterly expectations, with earnings and revenue growth expectations for the next three quarters contrasted with actuals for the preceding four periods; expectations for 2021 Q4 have been highlighted.

Image Source: Zacks Investment Research

As you can see in the above chart, the growth pace is expected to decelerate meaningfully over the coming quarters, but still remain positive.

The chart below provides a big-picture view on an annual basis.

Image Source: Zacks Investment Research

Q4 Earnings Season Gets Underway

Friday’s results from JPMorgan, Citi and others (unofficially) kick-started the Q4 earnings season. But from our perspective, the reporting cycle was well underway before these banks results arrived. Including the three major banks that reported Friday morning, we now have 26 S&P 500 members.

We have more than 90 companies on deck to report results this week, including 37 S&P 500 members. The Finance sector dominates this week’s reporting docket, with Netflix and few airlines and railroad operators as the other major reports this week.

For the 26 index members that have reported already, total Q4 earnings or aggregate net income is up +19.2% from the same period last year on +11.7% higher revenues, with 88.5% of the companies beating EPS estimates and 84.6% beating revenue estimates.

This is too small a sample to draw any firm conclusions from. That said, the comparison charts below put the earnings and revenue growth rates for these 26 companies in a historical context.

Image Source: Zacks Investment Research

The comparison charts below put the Q4 EPS and revenue beats percentages in a historical context.

Image Source: Zacks Investment Research

The summary table below shows Q4 expectations in the context of what we saw in the preceding period.

Image Source: Zacks Investment Research

For an in-depth look at the overall earnings picture and expectations for the coming quarters, please check out our weekly Earnings Trends report >>>> The Q4 Earnings Season Gets Underway

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

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
 
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
 
Citigroup Inc. (C): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/413392

Schlumberger (SLB) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. This widely-known consensus outlook gives a good sense of the company’s earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

– Zacks

The earnings report, which is expected to be released on January 21, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus Estimate

This world’s largest oilfield services company is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of +77.3%.

Revenues are expected to be $6.09 billion, up 10% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings Whisper

Estimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Schlumberger?

For Schlumberger, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company’s earnings prospects. This has resulted in an Earnings ESP of +2.86%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that Schlumberger will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

While calculating estimates for a company’s future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Schlumberger would post earnings of $0.36 per share when it actually produced earnings of $0.36, delivering no surprise.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it’s worth checking a company’s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

Schlumberger appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

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
 
Schlumberger Limited (SLB): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/413366

Wall Street expects a year-over-year increase in earnings on higher revenues when Ally Financial (ALLY) reports results for the quarter ended December 2021. While this widely-known consensus outlook is important in gauging the company’s earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

– Zacks

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on January 21. On the other hand, if they miss, the stock may move lower.

While management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus Estimate

This auto finance company and bank is expected to post quarterly earnings of $2.01 per share in its upcoming report, which represents a year-over-year change of +25.6%.

Revenues are expected to be $2.06 billion, up 4.1% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 0.95% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings Whisper

Estimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Ally Financial?

For Ally Financial, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company’s earnings prospects. This has resulted in an Earnings ESP of +2.55%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Ally Financial will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Ally Financial would post earnings of $1.96 per share when it actually produced earnings of $2.16, delivering a surprise of +10.20%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it’s worth checking a company’s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

Ally Financial appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

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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
 
Ally Financial Inc. (ALLY): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/413367

Wall Street expects a year-over-year decline in earnings on lower revenues when First Hawaiian (FHB) reports results for the quarter ended December 2021. While this widely-known consensus outlook is important in gauging the company’s earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

– Zacks

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on January 21. On the other hand, if they miss, the stock may move lower.

While management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus Estimate

This bank holding company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of -6%.

Revenues are expected to be $181.21 million, down 4% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings Whisper

Estimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for First Hawaiian?

For First Hawaiian, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company’s earnings prospects. This has resulted in an Earnings ESP of +5.38%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that First Hawaiian will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that First Hawaiian would post earnings of $0.48 per share when it actually produced earnings of $0.51, delivering a surprise of +6.25%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it’s worth checking a company’s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

First Hawaiian appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

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
 
First Hawaiian, Inc. (FHB): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/413368

Huntington Bancshares (HBAN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. This widely-known consensus outlook gives a good sense of the company’s earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

– Zacks

The earnings report, which is expected to be released on January 21, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus Estimate

This regional bank holding company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +37%.

Revenues are expected to be $1.69 billion, up 36.4% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 1.78% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings Whisper

Estimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Huntington Bancshares?

For Huntington Bancshares, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company’s earnings prospects. This has resulted in an Earnings ESP of +1.46%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Huntington Bancshares will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Huntington Bancshares would post earnings of $0.36 per share when it actually produced earnings of $0.35, delivering a surprise of -2.78%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it’s worth checking a company’s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

Huntington Bancshares appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

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
 
Huntington Bancshares Incorporated (HBAN): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/413369