We are in the initial stages of the fourth-quarter 2024 earnings season. So far, results have come in line with expectations. As of Jan. 29, 112 companies of the broad-market index — the S&P 500 — reported their quarterly financial numbers.
Total earnings of these companies are up 10.8% year over year on 5.5% higher revenues, with 80.4% beating earnings per share (EPS) estimates and 68.8% beating revenue estimates.
Looking at the fourth quarter as a whole, total earnings for the S&P 500 Index are expected to be up 9.2% from the same period last year on 4.8% higher revenues. This follows 8.4% year-over-year EPS growth on 4.9% higher revenues in the previous quarter.
Five large-cap companies slated to report their quarterly financial numbers tomorrow are set to beat their earnings estimates. Investing in these stocks with a favorable Zacks Rank should be fruitful as they are likely to see stock prices move northward in the near future.
These are: W.W. Grainger Inc. GWW, Charter Communications Inc. CHTR, Aon plc AON, Broadridge Financial Solutions Inc. BR and Church & Dwight Co. Inc. CHD.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
5 Large-Cap Stocks Set to Gain on Earnings Results
We have narrowed our search to five corporate bigwigs set to report earnings results tomorrow. Each of these stocks carries either a Zacks Rank # 2 (Buy) or 3 (Hold) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 or better (Rank #1 or 2) and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of five stocks in the last quarter.
Image Source: Zacks Investment Research
W.W. Grainger Inc.
Zacks Rank #3 W.W. Grainger has been gaining from volume growth in the High Touch Solutions segment and customer growth in the Endless Assortment segment. The High-Touch Solutions segment of GWW is gaining from an improved product mix. Repeat customer growth at MonotaRO is aiding the Endless Assortment segment.
Volume improvement and pricing actions will drive GWW’s top-line growth in the upcoming quarters. GWW’s initiatives to manage inventory effectively, as well as its investments in e-commerce and digital capabilities, will likely to drive profitability in the ongoing year. W.W. Grainger has an Earnings ESP of +0.59%.
For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $4.23 billion, suggesting an improvement of 6% year over year and earnings per share of $9.75, indicating an increase of 17.1% year over year.
The Zacks Consensus Estimate for fourth-quarter 2024 earnings improved 3.4% in the last 90 days. The company delivered positive earnings surprises in three out of the last four reported quarters, with the average beat being 1.3%.
Charter Communications Inc.
Zacks Rank #3 Charter Communications is benefiting from continued growth in residential Internet sales and mobile service revenues. CHTR’s expanding Internet subscriber base and strong growth in mobile lines hold promise. CHTR’s broadband service continues to gain traction among small and medium businesses.
CHTR’s initiatives to evolve its network services to improve speed and latency have been a key catalyst. CHTR’s distribution agreement with Warner Bros. Discovery is attracting more users as it allows Spectrum TV Select customers to access Max. Charter Communications has an Earnings ESP of +1.92%.
For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $13.88 billion, suggesting an improvement of 1.2% year over year and earnings per share of $9.54, indicating an increase of 34.9% year over year. The Zacks Consensus Estimate for fourth-quarter 2024 earnings improved 1% in the last 30 days.
Aon plc
Zacks Rank #3 Aon’s bottom line has been growing due to strategic initiatives and strong fundamentals, which have enhanced its capabilities and made it one of the largest insurance brokers. AON expects single-digit or more organic revenue growth in 2024. We expect Commercial Risk Solutions' revenues to jump 12% year over year in 2024.
AON divests non-core assets to streamline operations. AON expects double-digit free cash flow growth in the long term. AON maintains a prudent approach to capital deployment. AON has an Earnings ESP of +2.75%.
For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $4.19 billion, suggesting an improvement of 24.2% year over year and earnings per share of $4.24, indicating an increase of 9% year over year. The Zacks Consensus Estimate for fourth-quarter 2024 earnings improved 0.1% in the last 90 days.
Broadridge Financial Solutions Inc.
Zacks Rank #2 Broadridge Financial Solutions has a strong business model, backed by higher recurring fee revenues. BR’s diversified products and services, along with acquisitions, support top-line growth.
Increasing presence in the EMEA and APAC through the Itiviti acquisition boosts BR’s Global Technology and Operations segment. Consistent demand for technology solutions globally should help BR significantly gain from its SaaS-based offerings. Broadridge Financial Solutions has an Earnings ESP of +7.72%.
For third-quarter fiscal 2025, the Zacks Consensus Estimate currently shows revenues of $1.54 billion, suggesting an improvement of 9.8% year over year and earnings per share of $1.39, indicating an increase of 51.1% year over year.
The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings improved 2.2% in the last 30 days. The company delivered positive earnings surprises in the last four reported quarters, with the average beat being 1.3%.
Church & Dwight Co. Inc.
Zacks Rank #3 Church & Dwight continues to solidify its market position through a strong brand portfolio and adept pricing strategies. CHD’s focus on expanding online sales has aligned with shifting consumer behaviors.
Profitability improved, as CHD’s adjusted gross margin expanded by 80 basis points to 45.2%, supported by productivity gains, higher volumes, and a favorable product mix. CHD benefits from a robust portfolio of trusted consumer brands, strengthened by a continuous focus on innovation. Broadridge Financial Solutions has an Earnings ESP of +0.11%.
For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $1.56 billion, suggesting an improvement of 2.3% year over year and earnings per share of $0.77, indicating an increase of 18.5% year over year. The company delivered positive earnings surprises in the last four reported quarters, with the average beat being 10%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
Aon plc (AON) : Free Stock Analysis Report
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