Many stocks tend to see more trading activity after reporting their quarterly earnings results. The increased share volume can do great things for a company that surpasses investor expectations.
However, higher volume levels can also hurt firms if they had a bad quarter. Zeroing in on stocks that are set to beat earnings expectations can be easy, but only if you have the right tools.
The Zacks Rank harnesses the power of earnings estimate revisions, so let’s see which healthcare stocks are poised to outperform this earnings season.
ICON PLC (ICLR) is a full service clinical research organization. It operates internationally, and it provides contract clinical research services to the pharmaceutical industry. The company has been growing sales every year, and it recently completed its acquisition of Clinical Research Management Inc. ICLR stock is a Zacks Rank #2 (Buy) and it has a “B” for Value in our Style Scores.
Icon has a relatively tame forward PE of 16.3, and its EPS is projected to grow by 18% this year. It should also be noted that the research organization has a nice level of profitability, posting a trailing twelve month net margin of 15%. The company has topped our EPS consensus in each of the last four quarters, and it is slated to release its Q3 earnings in mid-October.
Laboratory Corp. of America Holdings (LH) is a clinical laboratory that offers various tests which are used by the medical field in routine testing, patient diagnosis, and in the monitoring and treatment of disease. The company provides end-to-end drug development support through Covance Drug Development. LH stock is a Zacks Rank #2 (Buy) and it has an “A” for Value in our Style Scores. The corporation has been growing rapidly, with sales increasing by 44.37% last year.
Four analysts have revised their EPS estimates for the current year over the last 60 days. No analysts have lowered their earnings estimates in that span of time for fiscal 2016. Laboratory Corporation has topped our estimates over three of the last four quarters, and it is expected to release its Q3 results on the 26th of October.
The Zacks Rank is a truly marvelous trading tool. Our ranking system has beaten the S&P 500, yielding an average return of 25% per year for the last 29 years! Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report