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Top 4 Stocks Set to Beat on Earnings Today After Market Closes

We are in the last leg of the first-quarter 2023 earnings season. This week is the last big week with 2044 companies slated to report their financial numbers. The results have so far turned out better-than-expected on the back of the threat of a recession later this year by a large section of economists and financial experts.

In line with this trend, we have selected four stocks with a favorable Zacks Rank that are set to beat on earnings today after the closing bell. The combination of a favorable Zacks Rank with a possible earnings beat is likely to drive stock prices in the near-term.

Q1 Earnings Results So Far

As of May 8, 430 companies on the S&P 500 Index have reported their quarterly financial numbers. Total earnings of these companies are down 3.6% year over year on 4.7% higher revenues. Further, 77.4% of companies have surpassed earnings estimates while 74.9% have surpassed revenue estimates.

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Moreover, 62.3% of these 343 companies have surpassed both earnings and revenue estimates, marking the highest beat percentage for these companies as a whole since first-quarter 2022 and an increase from the 20-quarter average of 58.9%.

Our projection has shown that total earnings of the S&P 500 Index are set to decline 4.3% year over year on 4.2% higher revenues compared with a 10% year-over-year decline in earnings on 1.7% higher revenues, estimated at the beginning of the reporting cycle. This will follow a 5.4% year-over-year decline in earnings of the S&P 500 Index on 5.9% higher revenues in fourth-quarter 2022.

This earnings season is likely to witness the fifth consecutive quarter of a year-over-year decline in net margins of the S&P 500 Index. However, the aggregate net margin is likely to decline 1.07% year-over-year in first-quarter 2023 compared with a drop of 1.47% estimated at the beginning of the reporting cycle. This will follow a 1.38% year-over-year decline in fourth-quarter 2022 and a 1.22% decrease in third-quarter 2022.

Our Top Picks

We have narrowed our search to four stocks that are set to report earnings results today after market closes. Each of these stocks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank 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 four picks in the last quarter.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Wynn Resorts Ltd. WYNN is benefiting from improved non-gaming revenues and expansion efforts. WYNN has entered into a definitive agreement with Realty Income Corporation for the sale-leaseback of its real estate at Encore Boston Harbor. The initiative paves the path for financial flexibility in terms of retiring its near-term debt and deploying capital for the construction of additional parking and complimentary non-gaming amenities.

Also, WYNN emphasizes on adding food and beverage and entertainment amenities. With group business returning, the initiatives are likely to benefit it in the upcoming periods. Increased focus on WynnBET bodes well.

Zacks Rank #2 Wynn Resorts has an Earnings ESP of +105.69%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 25% over the last 30 days. WYNN recorded earnings surprises in two of the last four reported quarters, while missing estimates twice. This resulted in an average beat of 0.6%.

Celsius Holdings Inc. CELH specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. CELH markets Celsius, the calorie burner, through its wholly-owned operating subsidiary, Celsius Inc. CELH sells its products through grocery, drug, convenience, club and mass, and health and fitness channels.

Zacks Rank #1 Celsius Holdings has an Earnings ESP of +22.04%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.7% over the last 30 days.

IAC Inc. IAC operates as a media and internet company worldwide. IAC publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas, and magazines related to women and lifestyle.

IAC also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands.

Zacks Rank #1 IAC has an Earnings ESP of +13.58%. It has an expected earnings growth rate of 84.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.5% over the last seven days.

Revance Therapeutics Inc. RVNC developes a portfolio of products for aesthetic medicine and underserved therapeutic specialties, including dermatology and neurology. RVNC’s science is based upon a proprietary TransMTS peptide technology, which when combined with active drug molecules, may help address the current unmet needs.

RVNC’s lead drug candidate, DaxibotulinumtoxinA for Injection (RT002), is currently in development for the treatment of glabellar lines and cervical dystonia and has the potential to be the first long-acting neurotoxin. RVNC holds worldwide rights for all indications of RT002 injectable and RT001 topical and the pharmaceutical uses of the TransMTS technology platform.

Zacks Rank #2 Revance Therapeutics has an Earnings ESP of +29.33%. It has an expected earnings growth rate of 43.5% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.4% over the last 30 days.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report

Revance Therapeutics, Inc. (RVNC) : Free Stock Analysis Report

IAC Inc. (IAC) : Free Stock Analysis Report

Celsius Holdings Inc. (CELH) : Free Stock Analysis Report

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