CHICAGO, May 17, 2011 /PRNewswire/ -- Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes: Deere (NYSE: DE), Limited (NYSE: LTD), Ross Stores (Nasdaq: ROST), Aeropostal (NYSE: ARO) and Sears Holdings (Nasdaq: SHLD).
See more earnings analysis.
Every day, Zacks.com makes 4 stock picks available, free of charge.
Historically the best indicators of firms likely to report positive surprises are a recent history of positive surprises and rising estimates going into the report. The Zacks Rank is also a good indicator of potential surprises. Similarly a recent history of earnings disappointments, cuts in the average estimate for the quarter in the month before the report is due and a poor Zacks Rank (#4 or #5) are often red flags pointing to a potential disappointing earnings report. In the Earnings Calendar below, $999.00 should be read as N.A.
Potential Positive Surprises
Deere (NYSE: DE) is expected to report EPS of $2.06, up from $1.58 a year ago. Last time out, DE posted a 20.0% positive surprise. Over the last month, analysts have raised their expectations for this quarter by 0.86%. DE is a Zacks #2 Ranked stock.
Limited (NYSE: LTD) is expected to report EPS of $0.39, up from $0.25 a year ago. Last time out, LTD posted a 0.8% positive surprise. Over the last month, analysts have raised their expectations for this quarter by 11.95%. LTD is a Zacks #2 Ranked stock
Ross Stores (Nasdaq: ROST) is expected to report EPS of $1.46, up from $1.16 a year ago. Last time out, ROST posted in line with expectations. Over the last month, analysts have raised their expectations for this quarter by 9.97%. ROST is a Zacks #1 Ranked stock.
Potential Negative Surprises
Aeropostal (NYSE: ARO) is expected to report EPS of $0.20, down from $0.48 a year ago. Last time out, ARO posted a 2.06% disappointment. Over the last month, analysts have cut their expectations for this quarter by 45.5%. ARO is a Zacks #4 Ranked stock.
Sears Holdings (Nasdaq: SHLD) is expected to report a loss of $1.12, down from EPS of $0.16 a year ago. Last time out, DRYS posted a positive surprise of 4.86. Over the last month, analysts have cut their expectations for this quarter by 3450% (going from an expected profit to an expected loss). SHLD is a Zacks #4 Ranked stock.
Dirk Van Dijk, CFA, is the Chief Equity Strategist for Zacks.com.
About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have significantly underperformed the S&P 500 (+2% versus +9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard 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
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
YouTube Channel: http://www.youtube.com/user/ZacksInvestmentNews
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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.
SOURCE Zacks Investment Research, Inc.