5 high-flying midcaps to buy ahead of Q1 earnings


We’re in the first big week of this reporting cycle, with more than 1,000 companies reporting their financial numbers. Next week will be another big week with 1,600 companies reporting earnings results.

As of April 26, 164 companies in the S&P 500 have reported quarterly financial numbers. These companies had a 6.5% increase in gross revenue, down 1.2% year-over-year. In addition, 81.1% of companies exceeded revenue forecasts and 75% exceeded revenue forecasts.

Our forecast shows total S&P 500 returns falling 6.9% on 2.6% higher returns, compared to a 10% drop in returns on 1.7% higher returns estimated earlier last year. reporting cycle. This follows a 5.4% decline in S&P 500 earnings for the fourth quarter of 2022, compared to a 5.9% increase in Q4 2022.

1st term middle capitals

Like the three major stock indexes, the md-cap-centric S&P 400 ended in positive territory for the first quarter of 2023, up 3.4%. This was primarily due to a steady decline in the inflation rate, favorable economic data and a reduction in volume. An interest rate hike by the Fed.

Meanwhile, in a statement at the March FOMC meeting, Fed Chairman Jerome Powell said the rate hike cycle is nearing an end. This strengthened market participants’ confidence in risky assets such as stocks.

Our favorites

We narrowed our search to five mid-caps (market cap > $1 billion < $10 billion) scheduled to report earnings results in the first quarter of 2023. These stocks have provided returns of over 20% year to date.

Each of these stocks has a Zacks Rank #1 (Strong Buy) or 2 (Buy) and benefits from a positive ESP. You can see The full list of today’s Zacks #1 Rank stocks is here. The combination of a favorable Zacks Rank and potential earnings could further boost the stock price.

Our research shows that stocks with a combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP have up to a 70% chance of upside. These shares are expected to appreciate after the earnings release. The best stocks to buy or sell can be found with our ESP filter before they are announced.

The chart below shows the price performance of our five picks over the last quarter.

Image source: Zacks Investment Research

Shake Shack Inc. SHAK is a chain of fast food hamburger restaurants. SHAK operates in the US and internationally. SHAK is one of the nation’s largest hamburger chains, offering all-beef burgers, flat dogs, chicken sandwiches, ice cream and crusts, and more.

The company’s app and web channels allow customers to order food without visiting restaurants. Shake Shack’s stock price is up 30.2% year to date.

Zacks Rank #2 Shake Shack has an ESP of +2.3%. In the current year, its expected growth rate is 93.6%. The Zacks Consensus Estimate for current-year earnings has improved 33.3% over the past seven days.

Shake Shack has posted an average earnings windfall of 39.8% over the past four quarters. SHAK will announce earnings results on May 4, before the opening bell.

Wingstop Inc. WING franchises and operates restaurants. WING’s operating segment consists of franchise and company segments. WING offers classic wings, boneless wings and tenders cooked to order and tossed in a variety of hand-made sauces. Wingstop’s stock price is up 44.6% year to date.

Zacks Rank #2 Wingstop + Earnings ESP of 2.64%. Its expected revenue growth rate for the current year is 3.2%. The Zacks Consensus Estate for current-year earnings has improved 10.6% over the past 30 days.

Wingstop has posted earnings surprises averaging 22.7% in three of the last four quarters. WING will announce the entry results on May 3, before the opening bell.

AssetMark Financial Holdings Inc. AMK provides wealth management and technology solutions in the United States. AMK provides an open architecture product platform to the financial advisor channel, as well as client advisory, asset allocation options, experience management, support services and technology.

AMK also provides advisors with an integrated technology platform to access a range of automated processes, including new account opening, portfolio creation, simplified financial planning, client invoicing, investor reporting, goal progress analysis and client activity tracking; advisory services and selected investment platform. AssetMark Financial shares are up 34.7% year to date.

Zacks Rank #2 AssetMark Financial has a profit ESP of +1.87%. The expected revenue growth rate for the current year is 27.1%. The Zacks Consensus Estimate for current year earnings has improved by 22.7% over the past 30 days.

AssetMark Financial has recorded an average of 8 percent windfall over the past four quarters. AMK will announce earnings results after the closing bell on May 3.

Primerica Inc. PRI provides financial products and services. PRI helps its clients meet their needs in the term life insurance it underwrites and mutual funds, variable annuities and other financial products it distributes primarily on behalf of third parties.

PRI’s mission is to serve middle-income families by helping them make informed financial decisions and providing them with strategies and tools to achieve financial independence. PRI’s sales representatives use a proprietary Financial Needs Analysis, or FNA, tool and educational approach to demonstrate how its products can help clients provide financial protection for their families, retirement and debt management. Primerica shares rose to 27.1. % Year to date.

Zacks Rank #1 Primerica has an Earnings ESP of +0.17%. Its expected revenue growth rate for the current year is 32.6%. The Zacks Consensus Estate for current year earnings has improved 2.5% over the past 30 days. Primerica will announce earnings results after the May 8 closing bell.

Certara Inc. CERT provides customers with software products and technology-enabled services for drug discovery, preclinical and clinical research, regulatory submissions, and biosimulation for market access.

CERT provides medicines to patients using biosimulation software, technologies and services to transform drug discovery and development. CERT also provides technology support services for the regulatory submission process and marketing of its customers’ new medicines. Certara’s stock price is up 50.2% year to date.

Zacks Rank #1 Certara ESP has a yield of +5.41%. The expected revenue growth rate for the current year is 15.2%. The Zacks Consensus Estimate for current year earnings has improved by 15.2% over the past 60 days. Certara will announce earnings results after the closing bell on May 8.

Stay up-to-date with upcoming earnings announcements with the Zacks Earnings Calendar.

7 Best Stocks for the Next 30 Days

Just Released: Analysts release 7 elite stocks from the current 220 Zacks Rank #1 Strong Buy List. They consider these signs to be “most likely for early price pops.”

Since 1988, the entire list has more than doubled the market with an average annual growth of +24.8%. So pay close attention to these hand-picked 7s.

Check them out now >>

Want to get the latest recommendations from Zacks Investment Research? Today you can download the top 7 stocks for the next 30 days. Click to get this free report

Primerica, Inc. (PRI) : Free stock analysis report

Shake Shack, Inc. (SHAK) : Free stock analysis report

Wingstop Inc. (WING) : Free Stock Analysis Report

AssetMark Financial Holdings, Inc. (AMK) : Free Stock Analysis Report

Certara, Inc. (CERT): Free stock analysis report

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