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Construction Stocks to Post Earnings on Apr 28: WY & KBR

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With the Q1 earnings season taking center stage, investors are all eagerly waiting to note the daily beats and misses of the mega companies.

Our latest Earnings Outlook article reveals that 181 S&P 500 companies have reported earnings till Apr 26, accounting for 40% of the index’s total market capitalization, with 75.7% topping EPS (earnings per share) estimates and 64.1% coming in ahead of top-line expectations.

Overall performance of the Q1 reported cycle has been fairly good till now. The broad-based momentum has been stemmed by the better-than-expected results of companies reporting earnings in the recent days, especially banks.  

We currently anticipate that earnings and revenues of all the S&P 500 stocks would increase 9.7% and 5.9%, respectively, on a year-over-year basis.

While reckoning the performance of construction stocks, we believe that positives like increased infrastructure spending in the U.S., upbeat consumer confidence and the recovering Chinese economy will likely bolster near-term results.   

Zacks Counsel

According to the Zacks Industry classification, construction stocks are broadly grouped under the Construction sector, one of the 16 Zacks sectors.

The graph below shows that over the last one month, the Zacks classified Construction sector yielded a return of 1.99%, outperforming growth of 1.38% recorded by the benchmark S&P 500 index.  

Our latest Earnings Outlook (dated Apr 26, 2017) article states that roughly 53.8% of the Construction stocks in the S&P 500 Group have reported results for this quarter, recording 14% rise in earnings and 10.6% upside in revenues on a year-over-year basis.

We project that both earnings and revenues of all the construction stocks in the S&P 500 Group would increase 6.1% and 5.4%, respectively, on a year-over-year basis.

What's in the Cards for these 2 Construction Stocks?

Weyerhaeuser Co. (WY - Free Report) is scheduled to report its quarterly numbers, before the market opens. The company’s average positive earnings surprise for the last four quarters is 0.72%. Our proven model predicts that Weyerhaeuser would beat on earnings this quarter.

This is because the company has the right combination of the two key ingredients – a positive Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Weyerhaeuser currently has an Earnings ESP of +5.56% for the quarter. This is because the Most Accurate estimate of 19 cents comes above the Zacks Consensus Estimate of 18 cents.

Weyerhaeuser Company Price and EPS Surprise

 

Weyerhaeuser Company Price and EPS Surprise | Weyerhaeuser Company Quote

Weyerhaeuser’s favorable Zacks Rank #2, when combined with a positive ESP, makes earnings beat prediction possible this quarter.

Notably, over the last seven days, the Zacks Consensus Estimate for the stock moved north 12.5% to 18 cents, reflecting positive market sentiments. You can see the complete list of today’s Zacks #1 Rank stocks here.

Strategic disinvestment plans and improving housing market conditions in the U.S. are anticipated to drive the company’s top- and bottom-line performance in the quarter to be reported. (Read more: Will Weyerhaeuser be Able to Top Q1 Earnings Estimates?)

KBR, Inc. (KBR - Free Report) is slated to report its quarterly figures, before the market opens. The company’s average negative earnings surprise for the trailing four quarters is 111.93%. However, our proven model predicts that KBR, Inc. would beat on earnings this quarter.

The company carries a favorable Zacks Rank #3 and an Earnings ESP of +3.57%. The stock’s Most Accurate estimate of 29 cents is higher than the Zacks Consensus Estimate of 28 cents.

KBR, Inc. Price and EPS Surprise

 

KBR, Inc. Price and EPS Surprise | KBR, Inc. Quote

Notably, over the last seven days, the Zacks Consensus Estimate for the stock climbed 3.7% to 28 cents, indicating positive market sentiments.  

Don’t miss on our full earnings release articles for these two construction stocks, as the actual results might hold some surprises!

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