Investment Insight: Upcoming Earnings Season Brings Opportunity Investment Insight: Upcoming Earnings Season Brings Opportunity

By: Alex Freidmen

Steel Dynamics (STLD)

In the thrall of the Q4 earnings season, Steel Dynamics draws attention. The leading steel producer, garlanded with a Zacks Rank #1 (Strong Buy), is set to unveil its quarterly results. Earnings estimates are on the rise, signaling that STLD shares are undervalued. Expectations for Q4 EPS have surged 18% over the last 60 days, pointing to a robust figure of $2.63 per share.

Moreover, annual earnings estimates for fiscal 2023 are up 2% over the last two months, whereas FY24 EPS estimates have soared by 10%. These promising figures suggest that the company could potentially deliver better-than-expected guidance, a prospect that has invigorated investor interest in this steel giant.

Netflix (NFLX)

Amidst its shift to emphasize financial performance over subscriber growth, Netflix holds a Zacks Rank #2 (Buy). The streaming behemoth is anticipated to witness substantial quarterly growth, buttressing its valuation while projecting a Q4 EPS surge to $2.20 compared to $0.12 in the prior-year quarter. Furthermore, Q4 sales are expected to ascend by 11% to $8.72 billion, underpinning expectations for a robust financial report.

General Electric (GE)

General Electric, an extensive conglomerate, is another eye-catching prospect as it gears up to release its Q4 report. Sporting a Zacks Rank #2 (Buy), the company’s broad reach continues to underpin its bottom line, notwithstanding the anticipated decline in Q4 earnings. Meanwhile, annual earnings for FY23 are expected to see a 1% uptick, with forecasts for a staggering 69% surge in FY24 EPS to $4.49 per share. Furthermore, General Electric has consistently surpassed earnings expectations for four consecutive quarters, boasting an average earnings surprise of 53.42%.

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Verdict: Readying for Potential Gain

As investors gear up for next week’s earnings releases, the trio of Steel Dynamics, Netflix, and General Electric beckon attention. Positive Q4 results and promising financial guidance could serve as the catalysts propelling these stocks to greater heights.