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The Zacks Analyst Blog Highlights: Denny's, Bunge, YETI, Tempur Sealy International and Alteryx

Zacks Equity Research
·7-min read

For Immediate Release

Chicago, IL – February 10, 2020 – 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: Denny's Corp. DENN, Bunge Ltd. BG, YETI Holdings Inc. YETI, Tempur Sealy International Inc. TPX and Alteryx Inc. AYX.

Here are highlights from Friday’s Analyst Blog:

5 Top Mid-Cap Stocks Set to Gain on Earnings Next Week

Wall Street had a dream run in 2019 wherein all three major stock indexes, predominantly comprising large-cap stocks, witnessed best yearly performances in six years. Aside from these three large-cap centric indexes, the S&P 400 Mid Cap Index (SP400) also rallied 24.2% in 2019 and 2.6% in fourth-quarter 2019. In fact, investment in mid-cap stocks is recognized as a good portfolio diversification strategy. These stocks combine attractive attributes of both small and large-cap stocks.

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Notably, the fourth-quarter earnings trends are showing steady improvement. Although corporate earnings growth was negative year over year in the first three quarters of last year, fourth-quarter results are faring better than initially anticipated. Below we will discuss how the reporting cycle is faring and present five top-ranked mid-cap stocks that are poised to beat earnings estimates next week.

Fourth-Quarter Earnings Results Improving  

Fourth-quarter 2019 earnings results are improving gradually. However, overall earnings are still expected to decline. As of Feb 5, 266 S&P 500 members reported fourth-quarter earnings results. Total earnings of these companies are up 0.4% from the same period last year on 3% higher revenues. Of the total, 70.7% surpassed EPS estimates while 67.3% outpaced revenue estimates.

Overall, fourth-quarter 2019 earnings for the S&P 500 Index were projected to be down 0.2% year over year on 4.2% higher revenues. This suggests a significant improvement from earnings decline of 3.2% year over year on 3.5% higher revenues, projected at the beginning of the reporting cycle. (Read More: Q4 Earnings Season Scorecard)

Fourth-Quarter at a Glance

The final three months of last year were quite promising as the U.S.-China trade war finally showed signs of shimmering down and strong economic data boosted investors’ sentiments. Moreover, Fed’s timely intervention and accommodative monetary policy helped the economy, especially the sagging U.S. housing market to recover with a low mortgage rate.

The U.S. economy is on a stable footing. In the fourth quarter, the GDP grew at 2.1% while for 2019, the economy increased 2.3%. Strong consumer spending (constituting 70% of GDP), a robust labor market with a historically low-level of unemployment, steady growth in wage rate and a housing-market revival bolstered investors’ sentiments are likely to get reflected in earnings results.

5 Mid-Cap Stocks Poised to Beat Earnings Estimates

We have narrowed down our search to five mid-cap companies that are gearing up to release their earnings results next week. Each of these stocks carries a Zacks Rank #1 (Strong 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 expected to soar after earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Denny's Corp. is one of the largest restaurant companies worldwide, operating moderately-priced restaurants: Denny's, Hardee's, Quincy's, El Pollo Loco, Coco's and Carrows. The company has an Earnings ESP of +5% for fourth-quarter 2019.

Denny's has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for the current year has improved 1.3% over the last 30 days. The trailing four-quarter positive earnings surprise is 19.5%, on average. Denny's is set to release earnings results on Feb 11, after the closing bell.

Bunge Ltd. operates as an agribusiness and food company globally. It operates in five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy and Fertilizer. The company has an Earnings ESP of +18.18% for fourth-quarter 2019.

Bunge has an expected earnings growth rate of 30.7% for the current year. The Zacks Consensus Estimate for the current year has improved 1.7% over the last 30 days. The trailing four-quarter positive earnings surprise is 394.6%, on average. Bunge is set to release earnings results on Feb 12, before the opening bell.

YETI Holdings Inc. designs, markets, retails, and distributes products for the outdoor and recreation market under the YETI brand in the United States, Canada, Australia and Japan. The company has an Earnings ESP of +4.65% for fourth-quarter 2019.

YETI Holdings has an expected earnings growth rate of 20.6% for the current year. The Zacks Consensus Estimate for the current year has improved 2.2% over the last 30 days. The trailing four-quarter positive earnings surprise is 51.8%, on average. YETI Holdings is set to release earnings results on Feb 13, before the opening bell.

Tempur Sealy International Inc. develops, manufactures, markets, and distributes bedding products. It operates through two segments, North America and International. The company has an Earnings ESP of +0.94% for fourth-quarter 2019.

Tempur Sealy has an expected earnings growth rate of 46.8% for the current year. The Zacks Consensus Estimate for the current year has improved 0.7% over the last 30 days. The trailing four-quarter positive earnings surprise is 10%, on average. Tempur Sealy is set to release earnings results on Feb 13, before the opening bell.

Alteryx Inc. operates a self-service data analytics software platform that enables organizations to enhance business outcomes and productivity of their business analysts, data scientists and citizen data scientists worldwide. The company has an Earnings ESP of +6.49% for fourth-quarter 2019.

Alteryx has an expected earnings growth rate of 39.1% for the current year. The trailing four-quarter positive earnings surprise is 129.2%, on average. Alteryx is set to release earnings results on Feb 13, after the closing bell.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.7% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

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Zacks Investment Research

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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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Denny's Corporation (DENN) : Free Stock Analysis Report
 
Bunge Limited (BG) : Free Stock Analysis Report
 
Tempur Sealy International, Inc. (TPX) : Free Stock Analysis Report
 
Alteryx, Inc. (AYX) : Free Stock Analysis Report
 
YETI Holdings, Inc. (YETI) : Free Stock Analysis Report
 
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Zacks Investment Research