The investors are getting more vigilant as the Q1 earnings season gains momentum revealing a positive earnings growth trend so far. The overall outlook for this reporting cycle has definitely improved buoyed by expectations of higher earnings as well as revenue growth compared with the prior quarter.

Per the Earnings Preview report as of Apr 21, out of the 95 S&P 500 members that have come up with their quarterly numbers, approximately 72.6% have posted positive earnings surprises, while 62.1% beat top-line expectations.

According to the report, earnings for the 95 S&P 500 companies that have reported so far are up 14.3% from the same period last year, while revenues have increased 4.6%.

Additionally, the report projects that earnings for the total S&P 500 companies are anticipated to grow 9.1% from the year-ago period, while revenue will rise 6%. In the fourth quarter, earnings of S&P 500 companies increased 7.4% while revenues gained 4.8%.

The performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, seven are anticipated to witness an earnings decline in Q1, with Autos, Retail/Wholesale and Transportation being a big drag. As far as Consumer Discretionary sector is concerned, the total earnings of the sector are anticipated to increase 3.6%, while revenues are estimated to advance 11.3%. Apparel stocks forms part of the consumer discretionary sector.

Let’s take a sneak peek at three Apparel stocks which are lined up to report first-quarter 2017 results on Apr 27.

Under Armour, Inc. (UAA Quick QuoteUAA - Free Report) is the developer, marketer and distributor of apparel, footwear, and accessories. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 27% despite missing the mark by 8% in the preceding quarter.

Under Armour’s sustained focus on brand development, expansion of DTC business, product innovation and foray into the technology-based fitness business bode well. Further, it has rolled out eCommerce platforms in countries like Mexico, Australia, New Zealand and Chile. Another major tool used by Under Armour to expand presence is the development of an International eCommerce team. In fourth-quarter 2016, international business increased 55% to $215 million.

However, Under Armour has been grappling with higher interest expense on account of higher debt level. In fourth-quarter 2016, the company’s interest expenses increased to nearly $8 million in comparison with $4 million in the prior-year quarter. The company expects interest expenses to rise to roughly $40 million in 2017. Management anticipates net revenue for 2017 to be nearly $5.4 billion. This represents an increase of 11–12% over the 2016 level. In 2016, the company’s revenue grew 22%. (Read more: Under Armour to Post Q1 Earnings: What's in the Cards?)

Under Armour carries a Zacks Rank #3 (Hold) and has an Earnings ESP of -25.00%. The Zacks Consensus Estimate for the quarter is pegged at a loss of 4 cents. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Columbia Sportswear Company (COLM Quick QuoteCOLM - Free Report) is a leading distributor of outdoor and active lifestyle apparel, footwear, accessories and equipment. However, the question lingering in investors’ minds is whether the company will be able to maintain its positive earnings streak in the to-be-reported quarter. Notably, its earnings have outpaced the Zacks Consensus Estimate in 16 straight quarters, with a trailing four-quarter average of 16.3%.

While Columbia Sportswear boasts a robust earnings history, it remains susceptible to the macroeconomic challenges in some of its key markets like the Europe/Middle East/Africa (EMEA) and the Latin America/Asia Pacific (LAAP) regions, especially in Korea and Russia. Further, the company is witnessing sluggish performance in Canada since past two quarters. These have weighed upon the company’s sales performance, which have missed the Zacks Consensus Estimate in the last three quarters of 2016, by an average of 2.7%.

Additionally, currency headwind remains a concern for the company and is expected to hurt results in 2017. Higher excise duties may also put pressure on margin, moving ahead.

Nevertheless, Columbia Sportswear is armed with a robust brand portfolio that caters to a wide range of customers. Further, its brand enhancing initiatives in the form of product innovation and marketing campaigns seem to be encouraging. Additionally, the company enhances footprint through strategic joint ventures and acquisitions. (Read more: Columbia Sportswear Q1 Earnings: What's in the Cards?)

Columbia Sportswear carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter is pegged at 42 cents. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Carter's, Inc. (CRI Quick QuoteCRI - Free Report) is slated to report quarterly results before the market opens. Last quarter, this marketer of branded apparel and related products, posted a positive earnings surprise of 6.6% with an average beat of 4.8% in the trailing four quarters. Carter's has an Earnings ESP of +1.21%. This is because the Most Accurate estimate stands at 84 cents, while the Zacks Consensus Estimate is pegged lower at 83 cents. Moreover, the company carries a Zacks Rank #3. The combination of a favorable Zacks Rank and positive Earnings ESP makes us reasonably confident of an earnings beat this quarter.

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