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Domino's, Paychex and JPMorgan are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – October 5, 2020 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Domino’s (DPZ - Free Report) , Paychex (PAYX - Free Report) and JPMorgan (JPM - Free Report) .
Previewing 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 as companies start reporting their September-quarter results in the coming days.
The wide majority of companies have fiscal quarters that correspond with the calendar quarters, which is September 30th for Q3. But 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 18 such companies have already released their quarterly results.
We and other data aggregators club the results from these 18 index members as part of the Q3 tally. We have another 3 S&P 500 members on deck to report fiscal August-quarter results this week, including Domino’s and Paychex. In other words, we will have seen plenty of such Q3 results before JPMorgan comes out with its report on the morning of October 13th.
The expectation is for total S&P 500 earnings to decline -22.8% from the same period last year on -2.9% lower revenues. This would follow the -32.3% 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. While the latest labor market and factory sector readings suggest some deceleration in the recovery, the recovery is nevertheless in place which should sustain the improving earnings trend.
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 weeks of September.
To get a sense of the aforementioned favorable revisions trend, the current $283.6 billion estimate for Q3 earnings is up from $282.3 billion last week.
The above annual growth picture approximates to an index ‘EPS’ of $126.94 for 2020, down from $159.90 in 2019 and $158.85 in 2021.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Domino's, Paychex and JPMorgan are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – October 5, 2020 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Domino’s (DPZ - Free Report) , Paychex (PAYX - Free Report) and JPMorgan (JPM - Free Report) .
Previewing 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 as companies start reporting their September-quarter results in the coming days.
The wide majority of companies have fiscal quarters that correspond with the calendar quarters, which is September 30th for Q3. But 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 18 such companies have already released their quarterly results.
We and other data aggregators club the results from these 18 index members as part of the Q3 tally. We have another 3 S&P 500 members on deck to report fiscal August-quarter results this week, including Domino’s and Paychex. In other words, we will have seen plenty of such Q3 results before JPMorgan comes out with its report on the morning of October 13th.
The expectation is for total S&P 500 earnings to decline -22.8% from the same period last year on -2.9% lower revenues. This would follow the -32.3% 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. While the latest labor market and factory sector readings suggest some deceleration in the recovery, the recovery is nevertheless in place which should sustain the improving earnings trend.
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 weeks of September.
To get a sense of the aforementioned favorable revisions trend, the current $283.6 billion estimate for Q3 earnings is up from $282.3 billion last week.
The above annual growth picture approximates to an index ‘EPS’ of $126.94 for 2020, down from $159.90 in 2019 and $158.85 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 >>>> Looking at the Improving Outlook Ahead of the Q3 Earnings Season
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.