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).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
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Retailers' Turn
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.
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