Every week, guests will join host and Zacks stock analyst Tracey Ryniec to talk about the current themes in stocks, bonds, and ETFs and how they affect your life.
Sheraz Mian, the director of research at Zacks, joins Tracey this week to talk about what the approaching earnings season is telling us from Zacks earnings data. Make sure to view this podcast’s video version.
If you exclude energy earnings from your calculations, the other 15 sectors are predicted to post earnings growth of 3.1% on 3.5% greater revenue in the third quarter.
In addition, since the start of the quarter, estimates have risen for 6 of the 16 Zacks sectors. These included technology, building, automobiles, medicine, retail, and industries.
Earnings projections for 2024 and Q4 are also rising.
Sheraz’s most recent article, Q3 Earnings Season Kicks Off, has all the most recent earnings data.
It will be a few months before we hear from NVIDIA again because it reports late in the earnings season. However, over the past two months, analysts have been updating their estimates. During that period, 15 have been raised higher for this fiscal year, while none have been revised down.
In the past 90 days, Meta Platforms’ earnings projections for 2023 have also increased. The Zacks Consensus is now expecting $13.24 instead of $11.90 as it was just three months ago.
Last year, Meta Platforms earned $9.83 per share, which represents a 35.7% increase in earnings. With a mere 22.9 ahead P/E, it is reasonably priced.
On October 25, following the closure of the market, Meta Platforms releases its earnings.
In 2023, Amazon pulled off a significant earnings turnaround. Earnings should increase by 214% to $2.23 from just $0.71 last year. The full year consensus has also increased, rising from $1.56 to $2.23 during the past 90 days.
Analysts have no negative views about Amazon. For the entire year, no projections have been reduced in the last 60 days.
Shares of Amazon are still expensive. It trades at 56.9 forward P/E.
The price of JPMorgan Chase stock has dropped 2.7% in the past month. At 8.9x, the stock is inexpensive. As earnings season approaches, there is a sense of doom about the banks, but should there be?
In 2023, earnings for JPMorgan Chase are predicted to increase by 33%. In the past 90 days, the Zacks Consensus has increased from $14.37 to $16.05. In 2022, it earned only $12.09.
Must JPMorgan Chase be among your top choices?
This earnings season, Sterling Infrastructure is a firm to keep an eye on. It conducts business in some of the most popular infrastructure sectors, such as data centres. Analysts are optimistic about the pound. The full year Zacks Consensus increased from $3.52 to $4.09 over the previous 60 days. The earnings growth from 2022 is 29.4%.
With a forward P/E of 17.9, Sterling Infrastructure is still valued at a favourable level.
Zacks has ranked Sterling Infrastructure as #1 (Strong Buy). In the Zacks Value Investor portfolio, Tracey is the owner.