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The Zacks Analyst Blog Highlights CF Industries, Occidental Petroleum, Marriott International, Airbnb and Enterprise Products Partners
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For Immediate Release
Chicago, IL – August 1, 2022 – 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: CF Industries Holdings Inc. (CF - Free Report) , Occidental Petroleum Corp. (OXY - Free Report) , Marriott International Inc. (MAR - Free Report) , Airbnb Inc. (ABNB - Free Report) and Enterprise Products Partners L.P. (EPD - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 Top Large-Cap Stocks Set to Beat on Q2 Earnings This Week
The second-quarter 2022 earnings season has gathered pace this week. Next week will be another big one with as many as 964 companies slated to release their quarterly numbers. So far, earnings results have come in better than expected and corporate America is yet to reveal any major signal regarding a near term recession.
We have selected five large-cap companies with a favorable Zacks Rank that are slated to release earnings results next week. The combination of a favorable Zacks Rank and a possible earnings beat should drive their share prices going forward.
These companies are - CF Industries Holdings Inc., Occidental Petroleum Corp., Marriott International Inc., Airbnb Inc. and Enterprise Products Partners L.P..
Q2 Earnings Results So Far
As of Jul 28, 245 companies within the S&P 500 Index reported their financial numbers. Total earnings of these companies are up 1.4% year over year on 11% higher revenues, with 75.5% beating EPS estimates and 65.7% beating revenue estimates. Our latest projection is that for the second quarter as a whole, total earnings of the S&P 500 Index will rise 4.2% year over year on 10.4% higher revenues.
Q2 At a Glance
Like the first quarter, the second quarter of 2022 also remained tough for the U.S. economy. Various measures of inflation remained elevated at a 41-year high. The Fed hiked the benchmark interest rate by 1.25% to the range of 1.5% to 1.75% at the end of the second quarter from 0.25% to 0.50% at the end of the first quarter. Moreover, the central bank has started reducing the size of its $9 trillion balance sheet systematically since June.
Despite these aggressive monetary policies adopted by the Fed, inflation is showing no sign of declining. The latest measure of inflation showed that the consumer price index jumped 9.1% year over year in June, marking the highest monthly rise since November 1981.
The complete devastation of the global supply-chain system and shortage of labor continued to put pressure on businesses in the form of higher input costs and wages. The lingering war between Russia and Ukraine, and the lockdown in China due to the resurgence of COVID-19 infections were the major hindrances to the restoration of the global supply-chain system.
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 anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
CF Industries is well-positioned to capitalize on the rising nitrogen fertilizer demand in major markets. Demand for CF's products is expected to rise on the back of higher industrial activities and high levels of planted acres in key regions. Nitrogen demand is expected to be strong in North America, supported by healthy corn acres in the United States.
Increased planted acres, higher crop prices and improved farm economics should also drive demand in Brazil. This, along with rising nitrogen prices, is expected to boost CF Industries' bottom line. We expect the company's adjusted EPS to grow by a whopping 374.2% in 2022. CF also remains committed to reducing debt and boosting shareholder value by leveraging strong cash flows.
CF Industries has an Earnings ESP of +0.30%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 12.2% over the last 90 days. CF is set to release earnings results on Aug 1, after the closing bell.
Marriott is benefiting from its focus on expansion initiatives, digital innovation and the loyalty program. MAR is gaining from the reopening of the international borders and leniency in travel restrictions.
Marriott is consistently trying to expand its worldwide presence and capitalize on the demand for hotels in the international markets. The U.S. and global economies have reopened to a great extent as new coronavirus cases have dropped considerably. Several countries are gradually removing travel restrictions. MAR will be a major gainer of the economy's reopening.
Marriott has an Earnings ESP of +7.11%. It has an expected earnings growth rate of 90.9% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.3% over the last 7 days.
MAR recorded earnings surprises in the last four reported quarters, with an average beat of 36.2%. The company is set to release earnings results on Aug 2, before the opening bell.
Occidental Petroleum continues to increase hydrocarbon production volumes from its high-quality asset holdings and lower outstanding debts through the proceeds from non-core assets sale. The acquisition of Anadarko, investments to strengthen infrastructure and its Permian Basin exposure continue to boost the performance of OXY.
Occidental Petroleum has achieved the $10-billion divestiture goal through non-core assets sales. Its cost-management initiatives will boost margins going forward. OXY is also working to lower emissions and aims for net-zero emissions by 2050.
Occidental Petroleum has an Earnings ESP of +1.78%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.3% over the last 30 days.
OXY recorded earnings surprises in the last four reported quarters, with an average beat of 26.2%. The company is set to release earnings results on Aug 2, after the closing bell.
Airbnb is riding on an improvement in the travel industry. Continuous recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is benefiting ABNB's Nights & Experience bookings. Additionally, growth in Average Daily Rates and Gross Booking Value remain tailwinds.
Growing active listings in Latin America, North America and EMEA are contributing well to the top-line. Further, growing sales and marketing initiatives along with continuous efforts to upgrade various aspects of the Airbnb service are helping the company gain momentum among hosts and guests.
ABNB has an Earnings ESP of +0.82%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.5% over the last 7 days.
Airbnb recorded earnings surprises in the last four reported quarters, with an average beat of 67.8%. The company is set to release earnings results on Aug 2, after the closing bell.
Enterprise Products Partners boasts an extensive network of pipelines that spreads more than 50,000 miles and connects to every major U.S. shale play. EPD has a massive storage capacity of 260 million barrels of liquids and 14 billion cubic feet of natural gas.
Almost 80% of its pipeline contracts with shippers have been extended for 15-20 years, which will help generate steady cash flow for unitholders. Enterprise Products Partners is well-positioned to generate additional cash flow from under-construction growth capital projects worth $4.6 billion.
Enterprise Products Partners has an Earnings ESP of +2.42%. It has an expected earnings growth rate of 16.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.4% over the last 7 days.
EPD recorded earnings surprises in three out of the last four reported quarters, with an average beat of 3.4%. The company is set to release earnings results on Aug 3, before the opening bell.
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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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The Zacks Analyst Blog Highlights CF Industries, Occidental Petroleum, Marriott International, Airbnb and Enterprise Products Partners
For Immediate Release
Chicago, IL – August 1, 2022 – 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: CF Industries Holdings Inc. (CF - Free Report) , Occidental Petroleum Corp. (OXY - Free Report) , Marriott International Inc. (MAR - Free Report) , Airbnb Inc. (ABNB - Free Report) and Enterprise Products Partners L.P. (EPD - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 Top Large-Cap Stocks Set to Beat on Q2 Earnings This Week
The second-quarter 2022 earnings season has gathered pace this week. Next week will be another big one with as many as 964 companies slated to release their quarterly numbers. So far, earnings results have come in better than expected and corporate America is yet to reveal any major signal regarding a near term recession.
We have selected five large-cap companies with a favorable Zacks Rank that are slated to release earnings results next week. The combination of a favorable Zacks Rank and a possible earnings beat should drive their share prices going forward.
These companies are - CF Industries Holdings Inc., Occidental Petroleum Corp., Marriott International Inc., Airbnb Inc. and Enterprise Products Partners L.P..
Q2 Earnings Results So Far
As of Jul 28, 245 companies within the S&P 500 Index reported their financial numbers. Total earnings of these companies are up 1.4% year over year on 11% higher revenues, with 75.5% beating EPS estimates and 65.7% beating revenue estimates. Our latest projection is that for the second quarter as a whole, total earnings of the S&P 500 Index will rise 4.2% year over year on 10.4% higher revenues.
Q2 At a Glance
Like the first quarter, the second quarter of 2022 also remained tough for the U.S. economy. Various measures of inflation remained elevated at a 41-year high. The Fed hiked the benchmark interest rate by 1.25% to the range of 1.5% to 1.75% at the end of the second quarter from 0.25% to 0.50% at the end of the first quarter. Moreover, the central bank has started reducing the size of its $9 trillion balance sheet systematically since June.
Despite these aggressive monetary policies adopted by the Fed, inflation is showing no sign of declining. The latest measure of inflation showed that the consumer price index jumped 9.1% year over year in June, marking the highest monthly rise since November 1981.
The complete devastation of the global supply-chain system and shortage of labor continued to put pressure on businesses in the form of higher input costs and wages. The lingering war between Russia and Ukraine, and the lockdown in China due to the resurgence of COVID-19 infections were the major hindrances to the restoration of the global supply-chain system.
Our Top Picks
Five large-cap companies will report second-quarter 2022 earnings results next week. Each of these stocks carries a Zacks Rank #2 (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 anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
CF Industries is well-positioned to capitalize on the rising nitrogen fertilizer demand in major markets. Demand for CF's products is expected to rise on the back of higher industrial activities and high levels of planted acres in key regions. Nitrogen demand is expected to be strong in North America, supported by healthy corn acres in the United States.
Increased planted acres, higher crop prices and improved farm economics should also drive demand in Brazil. This, along with rising nitrogen prices, is expected to boost CF Industries' bottom line. We expect the company's adjusted EPS to grow by a whopping 374.2% in 2022. CF also remains committed to reducing debt and boosting shareholder value by leveraging strong cash flows.
CF Industries has an Earnings ESP of +0.30%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 12.2% over the last 90 days. CF is set to release earnings results on Aug 1, after the closing bell.
Marriott is benefiting from its focus on expansion initiatives, digital innovation and the loyalty program. MAR is gaining from the reopening of the international borders and leniency in travel restrictions.
Marriott is consistently trying to expand its worldwide presence and capitalize on the demand for hotels in the international markets. The U.S. and global economies have reopened to a great extent as new coronavirus cases have dropped considerably. Several countries are gradually removing travel restrictions. MAR will be a major gainer of the economy's reopening.
Marriott has an Earnings ESP of +7.11%. It has an expected earnings growth rate of 90.9% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.3% over the last 7 days.
MAR recorded earnings surprises in the last four reported quarters, with an average beat of 36.2%. The company is set to release earnings results on Aug 2, before the opening bell.
Occidental Petroleum continues to increase hydrocarbon production volumes from its high-quality asset holdings and lower outstanding debts through the proceeds from non-core assets sale. The acquisition of Anadarko, investments to strengthen infrastructure and its Permian Basin exposure continue to boost the performance of OXY.
Occidental Petroleum has achieved the $10-billion divestiture goal through non-core assets sales. Its cost-management initiatives will boost margins going forward. OXY is also working to lower emissions and aims for net-zero emissions by 2050.
Occidental Petroleum has an Earnings ESP of +1.78%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.3% over the last 30 days.
OXY recorded earnings surprises in the last four reported quarters, with an average beat of 26.2%. The company is set to release earnings results on Aug 2, after the closing bell.
Airbnb is riding on an improvement in the travel industry. Continuous recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is benefiting ABNB's Nights & Experience bookings. Additionally, growth in Average Daily Rates and Gross Booking Value remain tailwinds.
Growing active listings in Latin America, North America and EMEA are contributing well to the top-line. Further, growing sales and marketing initiatives along with continuous efforts to upgrade various aspects of the Airbnb service are helping the company gain momentum among hosts and guests.
ABNB has an Earnings ESP of +0.82%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.5% over the last 7 days.
Airbnb recorded earnings surprises in the last four reported quarters, with an average beat of 67.8%. The company is set to release earnings results on Aug 2, after the closing bell.
Enterprise Products Partners boasts an extensive network of pipelines that spreads more than 50,000 miles and connects to every major U.S. shale play. EPD has a massive storage capacity of 260 million barrels of liquids and 14 billion cubic feet of natural gas.
Almost 80% of its pipeline contracts with shippers have been extended for 15-20 years, which will help generate steady cash flow for unitholders. Enterprise Products Partners is well-positioned to generate additional cash flow from under-construction growth capital projects worth $4.6 billion.
Enterprise Products Partners has an Earnings ESP of +2.42%. It has an expected earnings growth rate of 16.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.4% over the last 7 days.
EPD recorded earnings surprises in three out of the last four reported quarters, with an average beat of 3.4%. The company is set to release earnings results on Aug 3, before the opening bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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.