For Immediate Release
Chicago, IL – February 8, 2010 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes The New York Times (NYT), Hartford Insurance (HIG), AutoNation (AN), Electronic Arts (ERTS) and Allstate (ALL). 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.
Heavy Earnings Reports Continue
Potential Positive Surprises
Historically, the best indicators of firms which are 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. While normally firms that report better-than-expected earnings rise in reaction, that has not been the case so far this quarter. Some of the companies that have these characteristics include:
The New York Times (NYT) is expected to report EPS of $0.04, down from $0.36 per share a year ago. Last time out, NYT posted a positive surprise of 700% (OK, it was a very low base, so take that percentage with a grain of salt) and over the last month the mean estimate for its fourth quarter earnings is up 3.80%. NYT has a Zacks Rank of 1.
Hartford Insurance (HIG) is expected to report EPS before non-recurring items of $0.62, up from a loss of $0.72 a year ago. In the 3Q, HIG posted a positive surprise of 45.8% and over the last month, the consensus estimate for its 4Q earnings is up 71.0%. HIG is a Zacks Rank #1 stock.
AutoNation (AN) is expected to earn $0.20 per share this year, up from $0.12 a year ago. In the third quarter they posted a 2.86% positive surprise. Over the last month, the mean estimate for the 4Q is up 4.3%. AN holds a Zacks #2 rank.
Potential Negative Surprises
Electronic Arts (ERTS) is expected to earn $0.25 a share this quarter, down from $0.42 last year. They disappointed by 33.3% last time out, and analysts have cut the estimate for this quarter by 53.11% over the last month. The stock holds a Zacks Rank of 4.
Allstate (ALL) is expected to report EPS of $0.09 down from EPS of $0.97 last year. Last quarter they reported in line with expectations. Over the past month analysts have cut the estimate for this Zacks #4 ranked stock by 1.76%.
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.
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: Dirk Van Dijk, CFA
Company: Zacks.com
Phone: 312-265-9211
Email: pr@zacks.com
Visit: www.Zacks.com
