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The Zacks Analyst Blog Highlights: Comcast, Thermo Fisher, McDonald's, Canadian National and NextEra

Zacks Equity Research
Comcast's (CMCSA) second-quarter 2019 results benefit from increasing high-speed Internet subscriber base.

For Immediate Release

Chicago, IL –July 24, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Comcast Corp. CMCSA, Thermo Fisher Scientific Inc. TMO, McDonald's Corp. MCD, Canadian National Railway Co. CNI and NextEra Energy Inc. NEE.

Here are highlights from Tuesday’s Analyst Blog:

5 Corporate Giants Set to Win Big on Q2 Earnings This Week

Wall Street bulls are raging since the beginning of 2019 barring the trade-related market rout in May. All three major stock indexes, predominantly consisting of large-cap stocks, witnessed the best first half of any year in more than two decades.

Meanwhile, second-quarter 2019 earnings results so far are not as disappointing as expected initially. However, the forecast of overall earnings dip for two consecutive quarters is still looming large. Notably, Wall Street witnessed negative earnings in the first quarter for the first time since the second quarter of 2016. In spite of this, a few big corporates are set to handsomely beat earnings estimates this week.  

Second-Quarter Earnings Mixed So Far

As of Jul 19, 79 S&P 500 members reported second-quarter earnings results. Total earnings for these 79 index members are up 2.6% from the same period last year on 2.9% higher revenues. Notably, 79.7% companies surpassed EPS estimates while 60.8% beat revenue estimates.

At present, total second-quarter earnings for the S&P 500 Index are expected to be down 1.7% from the year-earlier period on 4% higher revenues. This is a significant improvement over an earnings decline of 3.4% on 3.9% higher revenues, expected on Jul 12. However, if the current estimate actually materializes, it would follow the 0.2% earnings decline on 4.5% higher revenues in the first quarter. (Read More: 3 Takeaways from Q2 Earnings Results Thus Far)

5 Corporate Behemoths Poised to Beat on Earnings in Q2

We have used several selection criteria for our picks. First, we selected large-cap stocks as these companies are doing business for a long time and their stock prices are generally stable. Second, these stocks are regular dividend payers. So, during severe market downturns, they can prove to be a regular income stream. Third, these stocks have surged year to date.

Moreover, all these stocks are expected to release earnings reports this week and have a positive Earnings ESP. Finally, each of our picks carries either a Zacks Rank #2 (Buy) or 3 (Hold). 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 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%.

Comcast Corp.is a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. Comcast Cable is one of the nation's largest video, high-speed Internet, and phone providers to residential customers under the XFINITY brand and also provides these services to businesses. The stock carries a Zacks Rank #2.

Comcast has an Earnings ESP of +1.88%% for the current quarter. The company has an expected earnings growth of 15.4% and 18.8% for current quarter and year, respectively. The Zacks Consensus Estimate for the current quarter and year improved 1.4% and 1%, respectively, over the last 60 days. It delivered positive earnings surprise in the last four quarters with an average beat of 7.9%.

The stock has jumped 28.8% year to date and offers a dividend yield of 1.9%. Comcast is expected to release earnings results on Jul 25, before the opening bell.

Thermo Fisher Scientific Inc.provides analytical and other instruments, laboratory equipment, software, consumables, reagents, instrument systems, chemicals, supplies and services worldwide. The stock carries a Zacks Rank #3.

Thermo Fisher has an Earnings ESP of +0.54%% for the current quarter. The company has an expected earnings growth of 9.5% and 9.7% for current quarter and year, respectively. The Zacks Consensus Estimate for the current quarter improved 0.3% over the last 60 days. The company pulled of a positive earnings surprise in the last four quarters with an average beat of 2.9%.

The stock has jumped 30.4% year to date and offers a dividend yield of 0.3%. Thermo Fisher is expected to release earnings results on Jul 24, before the opening bell.

McDonald's Corp.is the world's leading global food service retailer. The company operates and franchises McDonald's restaurants, which serve a locally-relevant menu of quality food and beverages sold at various price. The stock carries a Zacks Rank #3.

McDonald's has an Earnings ESP of +0.44%% for the current quarter. The company has an expected earnings growth of 3.5% and 1.4% for current quarter and year, respectively. The Zacks Consensus Estimate for the current quarter and year improved 0.5% and 0.1%, respectively, over the last 60 days. The company delivered positive earnings surprise in three out of the last four quarters with an average beat of 3.2%.

The stock has surged 21.1% year to date and offers a dividend yield of 2.2%. McDonald's is expected to release earnings results on Jul 26, before the opening bell.

Canadian National Railway Co.operates the larger of Canada's two principal railroads and the only coast-to-coast railroad network in North America. The company's rail network serves major ports in Canada and includes strategic connections to the United States. The stock has a Zacks Rank #3.

Canadian National Railway has an Earnings ESP of +0.71% for the current quarter. The company has an expected earnings growth of 7.7% and 12.5% for current quarter and year, respectively. The Zacks Consensus Estimate for the current year improved 0.9% over the last 60 days. The company delivered positive earnings surprise in three out of the last four quarters with an average beat of 3.7%.

The stock has surged 23% year to date and offers a dividend yield of 1.8%. Canadian National Railway is expected to release earnings results on Jul 23, after the closing bell.

NextEra Energy Inc.generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear and natural gas-fired facilities. The stock has a Zacks Rank #3.

NextEra Energy has an Earnings ESP of +1.41%% for the current quarter. The company has an expected earnings growth of 8.1% and 9.4% for current quarter and year, respectively. The Zacks Consensus Estimate for the current year improved 0.1% over the last 60 days. The company delivered positive earnings surprise in three out of the last four quarters with an average beat of 2.6%.

The stock has soared 20.5% year to date and offers a dividend yield of 2.4%. NextEra Energy is expected to release earnings results on Jul 24, before the opening bell.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Canadian National Railway Company (CNI) : Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
Comcast Corporation (CMCSA) : Free Stock Analysis Report
 
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
McDonald's Corporation (MCD) : Free Stock Analysis Report
 
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