Yahoo Finance Top 5 Large-Cap Stocks Set to Beat on Q4 Earnings This Week
We are in the middle of the fourth-quarter 2022 earnings season. So far, results are mostly in line with expectations. This earnings season will be important as market participants will closely monitor any sign of earnings, revenues or margin decline as well as the guidance given by companies.
A total of 792 companies will report their quarterly financial numbers this week. We have selected five with a favorable Zacks Rank that are poised to beat fourth-quarter earnings estimates. The combination of a favorable Zacks Rank and a possible earnings beat should drive their stock prices in the near-term.
These companies are - Prudential Financial Inc. PRU, Omnicom Group Inc. OMC, Yum! Brands Inc. YUM, Sun Life Financial Inc. SLF and Bruker Corp. BRKR.
Q4 2022 Earnings Results So Far
As of Feb 3, 251 S&P 500 companies reported their earnings results. Total earnings of these companies are down 7.5% year over year on 5.5% higher revenues with 71.3% beating EPS estimates and 68.1% beating revenue estimates. Our current projection shows that for fourth-quarter 2022, total earnings of the S&P 500 Index as a whole are expected to decline 5.9% year over year on 5% higher revenues.
Our Top Picks
Five large-cap (market capital > $10 billion) companies are set to beat fourth-quarter earnings estimates this week. Each of these stocks carries a Zacks Rank #2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of our five picks in the last quarter.
Image Source: Zacks Investment Research
Omnicom Group is one of the largest advertising, marketing and corporate communications companies in the world. OMC continues to focus on its internal development initiatives. Consistency and diversity of operations and increased focus on delivering consumer-centric strategic business solutions ensure persistent profitability.
OMC’s bottom line is gaining from ongoing operating efficiency initiatives in real estate, back-office services, procurement and IT areas. Change in the business mix resulting from the disposition of some underperforming or non-core agencies has been aiding the bottom line.
Omnicom Group has an Earnings ESP of +2.75%. The Zacks Consensus Estimate for current-year earnings has improved 3.6% over the last seven days. OMC recorded earnings surprises in the last four reported quarters, with an average beat of 9.4%. The company is set to release earnings results on Feb 7, after the closing bell.
Prudential Financial continues to benefit from its solid asset-based businesses, improved margins in Group Insurance business and international operations. A high-performing asset management business and deeper reach in the pension risk transfer market are catalysts for long-term growth.
PRU’s strategic initiatives have strengthened existing capabilities and poise it well for effective capital deployment. It is on track to become a higher growth, less market-sensitive business and is thus rearranging its businesses. A vast distribution network, a compelling product portfolio and superior brand image will give PRU a competitive edge.
Prudential Financial has an Earnings ESP of +0.46%. It has an expected earnings growth rate of 23.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 30 days.
PRU recorded earnings surprises in two out of the last four reported quarters, with an average beat of 36%. The company is set to release earnings results on Feb 7, after the closing bell.
YUM! Brands is the global leader in multi-branding and offers consumers more choice and convenience at one outlet. YUM presently reports through four segments - KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
Yum Brands now owns, operates and franchises restaurants in more than 150 countries and territories. YUM’s units were operated by independent franchisees or licensees under the terms of franchise or license agreements.
YUM has an Earnings ESP of +1.85%. It has an expected earnings growth rate of 15.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 30 days. YUM is set to release earnings results on Feb 8, before the opening bell.
Sun Life Financial is a financial services company providing insurance, wealth and asset management solutions to individuals and corporate clients worldwide. SLF’s focus on Asia operation, growing asset management businesses, scaling-up and integration of U.S. operations bode well. SLF banks on strategic buyouts to ramp up its growth profile.
Sun Life Financial is aggressively trying to boost its Global Asset Management Business. Aiming a spot within the top five players, it is growing its voluntary benefits business. SLF also intends to invest in the low investment-grade private credit space. A solid balance sheet and effective capital deployment for growth initiatives drive earnings, return on equity, and shareholder value. SLF intends to invest an additional $20 billion over the next five years.
Sun Life Financial has an Earnings ESP of +0.58%. It has an expected earnings growth rate of 2.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.4% over the last 30 days.
SLF recorded earnings surprises in three out of the last four reported quarters, with an average beat of 7%. The company is set to release earnings results on Feb 8, after the closing bell.
Bruker designs and manufactures proprietary life science and materials research systems and associated products that serve multiple customers in life science research, pharmaceuticals, applied markets, nanotechnology, cell biology, clinical research, microbiology and in-vitro diagnostics.
Despite operational headwinds from lingering supply chain and logistic delays, lockdowns in China and the conflict in Europe, BRKR registered a strong demand for differentiated high-value scientific instruments and life science solutions.
Bruker has an Earnings ESP of +3.88%. It has an expected earnings growth rate of 9.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 30 days.
BRKR recorded earnings surprises in the last four reported quarters, with an average beat of 11%. The company is set to release earnings results on Feb 8, after the closing bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Omnicom Group Inc. (OMC) : Free Stock Analysis Report
Yum! Brands, Inc. (YUM) : Free Stock Analysis Report
Prudential Financial, Inc. (PRU) : Free Stock Analysis Report
Sun Life Financial Inc. (SLF) : Free Stock Analysis Report
Bruker Corporation (BRKR) : Free Stock Analysis Report
