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Buy 5 High-Flying Old Economy Stocks With Solid Estimate Revisions

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U.S. stock markets have maintained their northward journey in 2024 after an astonishing rally in 2023. Despite the recent mayhem, year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have advanced 7%, 14% and 13%, respectively. However, a qualitative difference appeared between the rally of 2023 and 2024.

Last year, the rally was predominantly driven by the technology sector. An unprecedented adoption of generative artificial intelligence (AI) technology globally was the prime factor. This year, the rally is much broad-based. Several old economy stocks from sectors such as industrials, finance, utility, materials and consumer defensive have popped year to date.

Here we have selected five old economy stocks that have provided higher returns than the broad-market index — S&P 500 — year to date. These are: Newmont Corp. (NEM - Free Report) , Parker-Hannifin Corp. (PH - Free Report) , Crane Co. (CR - Free Report) , Howmet Aerospace Inc. (HWM - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) . These stocks have seen strong earnings estimate revisions in the last 60 days and carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

 

5 Old Economy Stocks with Strong Earnings Estimate Revisions 

Newmont Corp.

Newmont is making notable progress with its growth projects, including the Tanami expansion. The acquisition of Newcrest has also created an industry-leading portfolio with a multi-decade gold and copper production profile in the most favorable mining jurisdictions globally. The combination of NEM and Newcrest is expected to deliver significant value for shareholders and generate meaningful synergies. 

NEM also focuses on improving operational efficiency and returning value to shareholders. Higher gold prices will also drive NEM’s performance. Strong demand from central banks, a dovish Fed interest rate outlook and a surge in safe-haven demand triggered by geopolitical tensions have contributed to a rally in gold prices.

 

Solid Earnings Estimate Revisions for NEM Stock

Zacks Rank #1 Newmont has an expected revenue and earnings growth rate of 47.3% and 75.2%, respectively, for the current year. The Zacks Consensus Estimate for the current-quarter, next-quarter, current-year and next-year earnings has improved over the last 60 days. The stock price of NEM has surged 21.6% year to date.

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Parker-Hannifin Corp.

Parker-Hannifin is benefiting from higher demand from distributors and end users across the oil and gas, material handling, cars and light trucks, and farm and agriculture markets in the North American region within the Diversified Industrial segment.

Higher volume across all businesses, especially the commercial and military aftermarket businesses bolstered PH’s Aerospace Systems unit. Synergies from the Meggitt buyout are also aiding PH. Benefits from the Win strategy are driving PH’s margins.

 

Earnings Estimate Revisions of PH Shares on the Rise

Zacks Rank #2 Parker-Hannifin has an expected revenue and earnings growth rate of 3.3% and 4.6%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for the current-quarter, next-quarter, current-year and next-year earnings has improved over the last 30 days. The stock price of PH has climbed 24% year to date.

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Crane Co.

Crane manufactures and sells engineered industrial products in the Americas, Europe, the Middle East, Asia, and Australia. CR has three segments: Aerospace & Electronics, Process Flow Technologies, and Engineered Materials. 

 

Strong Earnings Estimate Revisions for CR Shares

Zacks Rank#2 Crane has an expected revenue and earnings growth rate of 11.6% and 18.7%, respectively, for the current year. The Zacks Consensus Estimate for the current-quarter, current-year and next-year earnings has improved over the last 60 days. The stock price of CR has appreciated 20.4% year to date.

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Howmet Aerospace Inc.

Howmet Aerospace is benefiting from solid momentum in the commercial aerospace market, driven by robust build rates and wide-body aircraft recovery. HWM is also witnessing strength in its defense aerospace business on the back of rising U.S. & international defense budgets. 

Robust orders for engine spares for the F-35 program and spares and new builds for legacy fighters auger well for HWM. Given the strength in most of its served markets, HWM has built a sound liquidity position that supports its shareholder-friendly policies.

 

Impressive Earnings Estimate Revisions for HWM Stock

Zacks Rank #1 Howmet Aerospace has an expected revenue and earnings growth rate of 12.6% and 40.8%, respectively, for the current year. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings have improved in the last 60 days. The stock price of HWM has soared 68.9% year to date.

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JPMorgan Chase & Co.

JPMorgan’s second-quarter 2024 results show a rebound in investment banking (IB) business. High rates, buyouts, opening branches and solid loan balance will aid JPM’s net interest income (NII), though higher funding costs will weigh on it. 

Our estimates for JPM’s NII (managed) and loans imply a CAGR of 1.8% and 3.8%, respectively, by 2026. While there has been a resurgence in JPM’s deal-making activities, a complete revival will still take some time.

 

JPM Shares Witness Robust Earnings Estimate Revisions

Zacks Rank #2 JPMorgan has an expected revenue and earnings growth rate of 8.8% and 3.4%, respectively, for the current year. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings have improved in the last 60 days. The stock price of JPM has jumped 24.9% year to date.

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