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The Zacks Analyst Blog Highlights: Thermo Fisher Scientific, Lithia Motors, Quest Diagnostics, Pool and Boston Beer

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For Immediate Release

Chicago, IL – July 21, 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: Thermo Fisher Scientific Inc. (TMO - Free Report) , Lithia Motors Inc. (LAD - Free Report) , Quest Diagnostics Inc. (DGX - Free Report) , Pool Corp. (POOL - Free Report) and The Boston Beer Co. Inc. (SAM - Free Report) .

Here are highlights from Monday’s Analyst Blog:

5 Top-Ranked Stocks Set to Outperform Q2 Earnings This Week

Second-quarter earnings estimates are rather disappointing at a glance. However, upon looking closely, there are several stocks poised to beat on earnings estimates this week.

Looking Back at Q2 2020

The second quarter had two distinct characteristics. First, economic activities were way below last year since lockdowns continued till the third week of May. Several economists have forecast that this earnings session will be the worst in 12 years, since the days of the Great Recession.

On the other hand, a series of economic data indicates that coronavirus-induced devastations may not be as serve as expected earlier. Unprecedented fiscal and monetary stimulus injected by the government and the Fed helped in strengthening consumer spending and business confidence. Consequently, Wall Street witnessed its best second quarter in more than two decades.

However, a second wave of COVID-19 in some states since the second half of June has forced them to again close some parts of their economies in less than a month. The resurgence significantly dented a section of economists and stifled financial experts' expectations of a V-shaped recovery of the U.S. economy.

Disappointing Expectations for Second-Quarter Earnings 

As of Jul 17, 47 S&P 500 members reported second-quarter 2020 earnings results. Total earnings of these companies are down 46% from the same period last year on 2% lower revenues. Of the total, 74.5% surpassed EPS estimates and 68.1% outpaced revenue estimates.

Overall, second-quarter  earnings for the S&P 500 Index are projected to be down 44.3% year over year on 10.3% lower revenues. Notably, first-quarter earnings of companies on the S&P 500 Index were down 13.5% on 1.4% higher revenues. (Read More: Previewing the Tech Sector's First Full Coronavirus Earnings Season)

5 Top-Ranked Stocks Set to Beat Q2 Earnings

We have narrowed down our search to five Zacks Rank #1 (Strong Buy) stocks slated to release earrings results this week with 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 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.

Thermo Fisher Scientific Inc. is a scientific instrument maker and a world leader in serving science. It provides analytical and other instruments, laboratory equipment, software, consumables, reagents, instrument systems, chemicals, supplies, and services worldwide. Thermo Fisher Scientific has an Earnings ESP of +14.37%.

The company has an expected earnings growth rate of 3.1% for the current year. The Zacks Consensus Estimate for the current year has improved by 7% over the last 30 days. It has a trailing four-quarter earnings surprise of 2.2%, on average. The company is set to release earnings results on Jul 22, before the opening bell.

Lithia Motors Inc. is one of the leading automotive retailers of new and used vehicles and related services in the United States. It operates through three segments: Domestic, Import, and Luxury. The company has an Earnings ESP of +6.19%.

The Zacks Consensus Estimate for Lithia Motors' current-year earnings has improved 10.3% over the last 30 days. It has a trailing four-quarter earnings surprise of 2%, on average. The company is set to release earnings results on Jul 22, before the opening bell.

Quest Diagnostics Inc. provides diagnostic testing, information, and services in the United States and internationally. It develops and delivers diagnostic information services, such as routine testing, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. The Quest Diagnostics has an Earnings ESP of +181.0%.

The company has an expected earnings growth rate of 2% for the current year. The Zacks Consensus Estimate for the current year has improved by 14.8% over the last 7 days. It has a trailing four-quarter earnings surprise of 5.6%, on average. The company is set to release earnings results on Jul 23, before the opening bell.

Pool Corp. is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. In addition, it is a leading regional wholesale distributor of irrigation and landscape products.

The company has an Earnings ESP of +6.88%. It has a trailing four-quarter earnings surprise of 9.8%, on average. The company is set to release earnings results on Jul 23, before the opening bell.

The Boston Beer Co. Inc. produces and sells alcohol beverages primarily in the United States. Aside its flagship Samuel Adams Boston Lager beer, it offers various beers, hard ciders and hard seltzers under the Samuel Adams, Twisted Tea, Angry Orchard Hard Cider and Truly Hard Seltzer brands. The Boston Beer has an Earnings ESP of +20.46%.

The company has an expected earnings growth rate of 9.1% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.2% over the last 7 days. It has a trailing four-quarter earnings surprise of 4.7%, on average. The company is set to release earnings results on Jul 23, after the closing bell.

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