We’re officially in the most important two weeks of earnings season, according to Bank of America Merrill Lynch.
They’re the two busiest periods during which S&P 500 companies will update investors on their third-quarter performance, and when many will provide guidance for the months ahead.
By BofAML’s calculation, 33% of earnings are on tap this week and next.
The firm’s analysts went a step further to identify the stocks that are poised to deliver the biggest earnings surprises. For stock pickers, these post-earnings rallies could mean returns bigger than what the broader market is offering.
“Alpha opportunity should be high: our work suggests that stock differentiation is heightened during earnings season, particularly the busiest reporting days, which fall this week on Oct. 23-25 and next week on Oct 30-Nov 1,” a team led by Savita Subramanian said in a note on Monday.
The list below showcases stocks that BofAML has handpicked as most likely to beat earnings expectations. They are all buy-rated, and are scheduled to report third-quarter results during the earnings-season peak that Subramanian specified.
They are ranked in ascending order of the number of standard deviations between BofAML’s earnings-per-share estimates and the consensus. A higher Z-score implies that the firm’s analysts are more bullish than their peers.
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