From Alcoa to Wells Fargo: Prepare for Q4 Earnings Season

by Louis Navellier | January 8, 2014 10:03 am

From Alcoa to Wells Fargo: Prepare for Q4 Earnings Season

Earnings season is upon us and you can bet that it is going to spur some big swings in the market. While the Fed was Wall Street’s obsession in 2013, I expect corporate profits to take center stage in 2014.

After a five-quarter earnings drought for the S&P 500, growth finally materialized in the third quarter, and earnings are expected to significantly improve from the fourth quarter and then again in every single quarter in 2014. With the U.S. dollar near a one-year low against a broad basket of 15 major currencies, many multinational companies are benefitting from a “currency tailwind.”

So I expect the fourth-quarter earnings season to be even more eventful than the last. To prepare for this, let’s preview some of the biggest earnings announcements coming at us over the next few trading days. I’ll provide what the analyst community’s expectations are for each stock plus my take on whether the upcoming earnings announcement is a buying opportunity.

The Good

Ticker Company Name Earnings Date Estimated Sales Growth Estimated Earnings Growth Recommendation
AXP American Express 16-Jan 5.0% 14.7% Buy[1]
BBBY Bed Bath & Beyond 8-Jan 6.8% 11.7% Buy[2]
SCHW Charles Schwab 13-Jan 14.4% 40.0% Buy[3]
SVU SUPERVALU 9-Jan -48.8% 333.3% Buy[4]
UNH UnitedHealth Group 16-Jan 12.4% 1.3% Buy[5]
WEN Wendy’s 13-Jan -2.7% -33.3% Buy[6]
WFC Wells Fargo 14-Jan -5.9% 6.5% Buy[7]

The Bad

Ticker Company Name Earnings Date Estimated Sales Growth Estimated Earnings Growth Recommendation
BAC Bank of America 15-Jan -1.7% 800.0% Hold[8]
BK Bank of New York Melon 17-Jan 2.3% 3.8% Hold[9]
COF Capital One Financial 16-Jan -2.8% 9.2% Hold[10]
CSX CSX 15-Jan 1.7% -2.3% Hold[11]
FDO Family Dollar Stores 9-Jan 3.4% 0.0% Hold[12]
GE General Electric 17-Jan 2.3% 20.5% Hold[13]
GS Goldman Sachs Group 16-Jan -17.4% -26.1% Hold[14]
INTC Intel 16-Jan 1.8% 8.3% Hold[15]
JPM JPMorgan 14-Jan -2.2% -4.3% Hold[16]
MON Monsanto 8-Jan 4.5% 3.2% Hold[17]
MS Morgan Stanley 17-Jan 7.5% 4.4% Hold[18]
TXI Texas Industries 8-Jan 31.9% 33.3% Hold[19]

The Ugly

Ticker Company Name Earnings Date Estimated Sales Growth Estimated Earnings Growth Recommendation
AA Aloca 9-Jan -8.5% 0.0% Sell[20]
C Citigroup 16-Jan -1.1% 49.3% Sell[21]
FAST Fastenal 13-Jan 8.4% 6.1% Strong Sell[22]
KMI Kinder Morgan 15-Jan 23.8% 2.9% Sell[23]
RT Ruby Tuesday 8-Jan -11.1% -300.0% Strong Sell[24]
STI SunTrust Banks 17-Jan -11.2% 6.2% Sell[25]
Endnotes:
  1. Buy: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AXP
  2. Buy: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=BBBY
  3. Buy: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=schw
  4. Buy: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=SVU
  5. Buy: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=unh
  6. Buy: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=wen
  7. Buy: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=wfc
  8. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=BAC
  9. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=BK
  10. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=COF
  11. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=csx
  12. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=FDO
  13. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ge
  14. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=gs
  15. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=intc
  16. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=jpm
  17. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MON
  18. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ms
  19. Hold: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=TXI
  20. Sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=AA
  21. Sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=C
  22. Strong Sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=fast
  23. Sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=kmi
  24. Strong Sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=RT
  25. Sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=sti

Source URL: http://investorplace.com/2014/01/earnings-season-aa-wfc-c-axp-bbby/
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