The Zacks Analyst Blog Highlights: Alcoa, Chevron, Pepsi, Google and J.P. Morgan

Oct 12, 2011, 09:30 ET from Zacks Investment Research, Inc.

CHICAGO, Oct. 12, 2011 /PRNewswire/ -- announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alcoa (NYSE: AA), Chevron (NYSE: CVX), Pepsi (NYSE: PEP), Google (Nasdaq: GOOG) and J.P. Morgan (NYSE: JPM).


Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Tuesday's Analyst Blog:

Waiting for Earnings Season

The five-day old market rally appears to be stalling today on Europe-related news, this time concerning the legislative approval for expansion of the lending capacity of the European Financial Stability Facility (EFSF). In the latest of the national Euro-zone legislative approvals, parliament of the Slovak Republic is scheduled to vote on the EFSF, and the outcome of the vote is reportedly far from certain.

But the suspense surrounding the Slovak vote is perhaps just an excuse for the market to take a breather. After all, the market has gained almost 9% in the last 5 trading sessions and no one would begrudge the market a pause after such a sprint. This is particularly so given the paucity of hard economic news today.

Except for the release of the minutes of the last Fed meeting later today, there isn't anything notable on the economic calendar. There is some interest in the Fed minutes, particularly the discussion surrounding the launch of Operation Twist, which may provide clues by the Fed's future course of action.

The biggest event of the day is the start of the third quarter reporting cycle with the release of Alcoa's (NYSE: AA) results after the market close. Chevron (NYSE: CVX) will also be providing a quarterly update after the close today. Later this week, we get results from Pepsi (NYSE: PEP), Google (Nasdaq: GOOG) and J.P. Morgan (NYSE: JPM). Estimates for Alcoa's quarterly earnings have been steadily coming down in recent weeks and currently remain roughly 26% below the level of just two months ago. Alcoa has produced a negative surprise in each of the last three quarters, but it may be able to reverse that trend today given the low expectations.

Alcoa's results may not tell us much about the health of overall corporate profitability, but a lot is riding on the quality of this earnings season. Of particular significance is the lack of conviction around current earnings expectations for the next four to six quarters. This is affecting investors' ability to arrive at a fair value for the market. The hope is that comments from management teams in this reporting cycle will lift the uncertainty surrounding earnings expectations, which would be a major positive for the market.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter:

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339

SOURCE Zacks Investment Research, Inc.