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JPMorgan Chase, Citigroup, PepsiCo and Micron Technology are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – September 28, 2020 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes JPMorgan Chase & Co. (JPM - Free Report) , Citigroup Inc. (C - Free Report) , PepsiCo, Inc. (PEP - Free Report) and Micron Technology, Inc. (MU - Free Report) .
Handicapping Q3 Earnings Season
The overall earnings picture has been steadily improving over the last three months as big parts of the U.S. economy have started coming out of the pandemic-driven lockdown. The market will be looking for this improving earnings trend to accelerate in the Q3 earnings season.
The wide majority of companies have fiscal quarters that correspond with the calendar quarters, which is September 30th for Q3. These calendar-quarter companies will start reporting Q3 results after September 30th. Back in the day when Alcoa was in all the major indexes, the aluminum producer was generally seen as kick-starting quarterly reporting cycles.
The rump Alcoa took following its split a few years back means it no longer has this distinction, with the big banks now kicking off the reporting cycle. We will see the same with the September-quarter earnings season when JPMorgan and Citigroup report quarterly results before the market opens on October 13th.
Not all companies have fiscal quarters that correspond with the calendar quarters, with about two dozen S&P 500 members that have fiscal quarters that ended in August and 12 such companies have reported their fiscal August-quarter results in recent days.
We and other data aggregators put the results from these 12 index members as part of the Q3 tally. And we have another 6 S&P 500 members on deck to report fiscal August-quarter results this week, including Pepsi, Micron and others. Looked at this way, the Q3 earnings season has gotten underway already from our standpoint.
The expectation is for total S&P 500 earnings to decline -23.1% from the same period last year -3.1% lower revenues. This would follow the -32.5% decline in Q2 when economic and business activities came to a halt as a result of the pandemic driven lockdowns.
The earnings outlook has been steadily improving since the start of Q3, as economic and business activities have resumed.
The positive revisions trend is not restricted to Q3, but also for Q4 and beyond. Estimates have started moving up again in recent days, after staying essentially stable through most of August and the first week of September.
To get a sense of the aforementioned favorable revisions trend, the current $282.3 billion estimate is up from $281.2 billion last week. 2020 earnings and revenues are expected to be down -20.8% and -4.8%, respectively.
The above annual growth picture approximates to an index ‘EPS’ of $126.86 for 2020, down from $160.20 in 2019 and $159.10 in 2021.
For an in-depth look at the overall earnings picture and expectations for the coming quarters, please check out our weekly Earnings Trends report.
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performancefor information about the performance numbers displayed in this press release.
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JPMorgan Chase, Citigroup, PepsiCo and Micron Technology are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – September 28, 2020 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes JPMorgan Chase & Co. (JPM - Free Report) , Citigroup Inc. (C - Free Report) , PepsiCo, Inc. (PEP - Free Report) and Micron Technology, Inc. (MU - Free Report) .
Handicapping Q3 Earnings Season
The overall earnings picture has been steadily improving over the last three months as big parts of the U.S. economy have started coming out of the pandemic-driven lockdown. The market will be looking for this improving earnings trend to accelerate in the Q3 earnings season.
The wide majority of companies have fiscal quarters that correspond with the calendar quarters, which is September 30th for Q3. These calendar-quarter companies will start reporting Q3 results after September 30th. Back in the day when Alcoa was in all the major indexes, the aluminum producer was generally seen as kick-starting quarterly reporting cycles.
The rump Alcoa took following its split a few years back means it no longer has this distinction, with the big banks now kicking off the reporting cycle. We will see the same with the September-quarter earnings season when JPMorgan and Citigroup report quarterly results before the market opens on October 13th.
Not all companies have fiscal quarters that correspond with the calendar quarters, with about two dozen S&P 500 members that have fiscal quarters that ended in August and 12 such companies have reported their fiscal August-quarter results in recent days.
We and other data aggregators put the results from these 12 index members as part of the Q3 tally. And we have another 6 S&P 500 members on deck to report fiscal August-quarter results this week, including Pepsi, Micron and others. Looked at this way, the Q3 earnings season has gotten underway already from our standpoint.
The expectation is for total S&P 500 earnings to decline -23.1% from the same period last year -3.1% lower revenues. This would follow the -32.5% decline in Q2 when economic and business activities came to a halt as a result of the pandemic driven lockdowns.
The earnings outlook has been steadily improving since the start of Q3, as economic and business activities have resumed.
The positive revisions trend is not restricted to Q3, but also for Q4 and beyond. Estimates have started moving up again in recent days, after staying essentially stable through most of August and the first week of September.
To get a sense of the aforementioned favorable revisions trend, the current $282.3 billion estimate is up from $281.2 billion last week. 2020 earnings and revenues are expected to be down -20.8% and -4.8%, respectively.
The above annual growth picture approximates to an index ‘EPS’ of $126.86 for 2020, down from $160.20 in 2019 and $159.10 in 2021.
For an in-depth look at the overall earnings picture and expectations for the coming quarters, please check out our weekly Earnings Trends report.
>>>> Q3 Earnings Season Preview
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performancefor information about the performance numbers displayed in this press release.