For Immediate Release
Chicago, IL – August 24, 2009 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Dell (DELL), Big Lots (BIG), Medtronic (MDT), Novell (NOVL), Staples (SPLS), Tiffany & Co. (TIF), Dollar Tree, Inc. (DLTR), Marvell Technology Group (MRVL) and Energy Conversion Devices (ENER). To see more earnings analysis, visit http://at.zacks.com/?id=3207.
Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=5612.
This Week’s Events
Dell (DELL) will release its results on Thursday, after the close, as second-quarter earnings season nears an end. The technology company is projected to have earned 23 cents per share.
Joining Dell will be fellow S&P 500 members Big Lots (BIG), Medtronic (MDT), Novell (NOVL), Staples (SPLS) and Tiffany & Co. (TIF). A total of 76 companies are confirmed to release results.
Given the surprisingly strong July existing home sales report, all eyes will be on Wednesday’s new home sales report. Specifically, economists will want to see that new home sales also rose for a fourth consecutive month.
- Tuesday: August Conference Board consumer confidence, June S&P/Case-Shiller Home Price Index
- Wednesday: July durable goods orders, July new home sales, weekly crude inventories
- Thursday: Preliminary second-quarter GDP, weekly initial jobless claims
- Friday: July personal income and spending, revised August University of Michigan consumer confidence
Atlanta Federal Reserve Bank President Dennis Lockhart will talk to the Chattanooga Area Chamber of Commerce on Wednesday. On Thursday, St. Louis Federal Reserve Bank President James Bullard will speak to MBA students at the University of Arkansas.
The markets are clearly climbing the wall of worry. Though the tailwind from second-quarter earnings has weakened, the markets are still finding upward momentum. At the same time, oil is hitting new highs. It’s difficult to make an argument for fighting the trend, though I do worry about how long this rally can last.
Companies That Could Issue Positive Earnings Surprises
Same-store sales for Dollar Tree, Inc. (DLTR) surged by 6.8% last month. In response, the majority of the covering brokerage analysts raised their second-quarter profit forecasts, pushing the Zacks Consensus Estimate up 3 cents to 54 cents per share. Given that DLTR has topped expectations for 7 consecutive quarters, another positive surprise could be forthcoming. Dollar Tree is scheduled to report on Wednesday, Aug 26, before the start of trading,
Marvell Technology Group (MRVL) has topped expectations over the last 4 quarters by an average margin of 3 cents per share. Ahead of the company’s fiscal second-quarter results, 2 of the covering brokerage analysts raised their profit projections. Though the changes did not move the Zacks Consensus Estimate from its current level of 9 cents per share, they did contribute to a more bullish most accurate estimate of 11 cents per share. Marvell Technology is scheduled to report on Thursday, Aug 27, after the close of trading.
Companies That Could Issue Negative Earnings Surprises
During the past few weeks, fiscal fourth-quarter projections on Energy Conversion Devices (ENER) have been cut. The negative revision caused the Zacks Consensus Estimate to worsen by a penny to a loss of 5 cents per share. The most accurate estimate is even more bearish at a loss of 12 cents per share. Given that ENER missed expectations last quarter, the negative revisions signal that another disappointment could occur. Energy Conversion Devices is scheduled to report on Thursday, Aug 27, before the start of trading.
Charles Rotblut, CFA, is the senior market analyst for Zacks.com.
About the Zacks Rank
Since 1988, the Zacks Rank has proven that “Earnings estimate revisions are the most powerful force impacting stock prices.” Since inception in 1988, #1 Rank Stocks have generated an average annual return of +26%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 111% annually (-0.8% versus +8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
Zacks “Profit from the Pros” e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5614.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=5615.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact: Charles Rotblut, CFA
Company: Zacks.com
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.Zacks.com
