The first-quarter earnings season is nearing its end, with better-than-expected results so far. Market participants are eagerly awaiting overall results and management guidance to assess the health of the U.S. economy.
As of May 8, 440 companies on the S&P 500 Index have reported their financial numbers. Total earnings for these companies have increased by 5% from the same period last year, with 78% beating EPS estimates and 60.9% beating revenue estimates.
Looking ahead, total earnings for the S&P 500 Index in the first quarter of 2024 are expected to be up 9.2% on 4.5% higher revenues. This follows solid earnings growth in the previous quarters, indicating a positive trend in corporate performance.
Some U.S. corporate giants are poised to beat on earnings this month, with a few of them holding a favorable Zacks Rank. DailyBubble believes that the combination of a favorable Zacks Rank and an earnings beat could drive stock prices higher in the near term.
DailyBubble’s top picks include five large-cap stocks expected to beat earnings results this month. Each of these stocks carries either a Zacks Rank #2 (Buy) or 3 (Hold) and has a positive Earnings ESP, increasing the likelihood of an earnings beat.
AutoZone Inc. (AZO) has been delivering record sales for 34 consecutive years, with a focus on expanding market penetration through the expansion of mega hubs. Deere & Co. (DE) is enhancing its pricing strategy to boost results, while Applied Materials Inc. (AMAT) is benefiting from strength in its global services segment.
Walmart Inc. (WMT) has been gaining from its diversified business and omnichannel initiatives, while The TJX Companies Inc. (TJX) is seeing success with its off-price business model and strategic store locations.
Overall, DailyBubble remains optimistic about the earnings potential of these stocks and believes that they are well-positioned for growth. Keep an eye on these companies as they release their earnings results in the coming days.