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3 Top-Rated Stocks to Watch as Earnings Approach: ABT, EFX, SLG

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Big banks continue to highlight this week’s earnings lineup but several stocks are standing out from various industries that are in the top 40% of over 250 Zacks industries

Sporting a Zacks Rank #2 (Buy) here are three of these top-rated stocks that investors will want to consider as their Q3 results approach on Wednesday, October 16.

 

Abbott Laboratories

Industry: Medical Products 

Starting with a medical standout, Abbott Laboratories (ABT - Free Report)  stock is attractive as a provider of pharmaceutical products, diagnostic products, nutritional products, and medical devices.

Abbott’s diverse healthcare offerings have fueled the company’s steady growth with Q3 sales thought to be up 4% to $10.56 billion. Furthermore, Q3 earnings are expected to rise 5% to $1.20 per share with it noteworthy that Abbott has reached or exceeded the Zacks EPS Consensus for 13 consecutive quarters dating back to July of 2021.

Expecting steady top and bottom line growth in fiscal 2024 and FY25, Abbott has a generous 1.89% annual dividend yield that tops the S&P 500’s 1.23% average while many of its industry peers don’t offer a payout.

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Equifax

Industry: Financial Transaction Services 

Among the Zacks Business Services sector, Equifax (EFX - Free Report)  is appealing as a global data, analytics, and technology company. Providing information solutions and outsourcing services, Equifax’s Q3 sales are projected to spike 9% to $1.44 billion with earnings expected to be up 4% to $1.84 per share (Current QTR below).

The financial transaction services leaders' bottom line is now expected to increase 9% this year with high-double-digit EPS growth in the forecast for FY25.

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Plus, the Zacks ESP (Expected Surprise Prediction) suggests Equifax could surpass earnings expectations with the Most Accurate Estimate having Q3 EPS pegged at $1.88 and 2% above the Zacks Consensus. Equifax has exceeded earnings expectations in three of its last four quarterly reports posting an average EPS surprise of 3.22%.

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SL Green Realty

Industry: REIT and Equity Trust-Other 

Operating commercial and residential real estate properties in New York, SL Green Reality (SLG - Free Report)  is a REIT that is worthy of consideration. SL Green’s Q3 sales are slated to increase 4% to $136.66 million. Most intriguing, SLG is starting to make the case for being undervalued at 8.9X forward earnings despite Q3 EPS expected to dip -5% to $1.20.

However, the Zacks ESP indicates SL Green could surpass Q3 earnings expectations with the Most Accurate Estimate at $1.23 and 2% above the Zacks Consensus.

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Even better, SL Green’s annual earnings are still projected to leap 54% in FY24 to $7.61 per share versus EPS of $4.94 in 2023. While FY25 EPS is expected to contract to $5.20 after what would be an exceptional year, SL Green’s 4.42% annual dividend should keep investors engaged. The real estate office titan has beaten the Zacks EPS Consensus in two of its last four quarterly reports with an average earnings surprise of 9.98%.

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Bottom Line

Ahead of their Q3 reports, Abbott Laboratories, Equifax, and SL Green Reality are three of the most intriguing stocks to watch in regards to this week’s earnings lineup. These top-rated stocks should certainly have more upside if they can reach or exceed expectations and offer favorable guidance.


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Abbott Laboratories (ABT) - free report >>

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