For Immediate Release
Chicago, IL – January 11, 2010 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes H.B. Fuller (FUL), Sealy Corp (ZZ), Supervalu (SVU) and Charles Schwab (SCHW). To see more earnings analysis, visit http://at.zacks.com/?id=3207.
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Historically, the best indicators of firms likely to report positive surprises are a recent history of positive surprises and rising estimates going into the report. The Zacks Rank is also a good indicator of potential surprises. Some of the companies that have these characteristics include:
H.B. Fuller (FUL) is expected to report EPS of $0.42, almost double the year ago level of $0.24. Last time out, they posted a positive surprise of 33.3%, and over the last month the mean estimate for its fourth quarter earnings is up 1.02%. FUL has a Zacks Rank of 2.
Sealy Corp (ZZ) should allow its investors to sleep well going into earnings season. This Zacks Rank #2 stock is expected to return to marginal profitability ($0.01) after posting a loss of $0.13 a share last year. While it was right on the mark relative to expectations last time out, the mean estimate for this quarter has increased by 22.1% over the last month.
In keeping with the overall very positive tone of last earnings season, the potential negative firms are less clear cut. However:
Supervalu (SVU) is expected to post earnings of $0.43 a share, down from earnings of $0.62 a share a year ago. Last time they disappointed by 2.78%. Worse for this Zacks Rank #4 stock, analysts have cut the estimates for this quarter by 1.72% over the last month.
Charles Schwab (SCHW) is expected to earn $0.15 a share this year versus EPS of $0.27 last year. They disappointed by 5.56% last time out, and analysts have cut the estimate for this quarter by 15.8% over the last month. The stock holds a Zacks Rank #5.
Dirk Van Dijk, CFA, is the Chief Equity Strategist 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.
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Contact: Dirk Van Dijk, CFA
Company: Zacks.com
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