CHICAGO, Aug. 1, 2011 /PRNewswire/ -- Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes CF Industries (NYSE: CF), CBS (NYSE: CBS) Cigna (NYSE: CI), MEMC Electronic Materials (NYSE: WFR) and XL Group (NYSE: XL). To see more earnings analysis, visit http://at.zacks.com/?id=3207.
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Earnings Season Peaks
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
- CF Industries (NYSE: CF) is expected to report EPS of $5.81 versus $2.51 a year ago. Last time out CF reported 17.96% above expectations, and over the last month the estimates for this quarter have risen by 2.84%. CF is a Zacks #1 Ranked stock.
- CBS (NYSE: CBS) is expected to report EPS of $0.45 versus $0.25 a year ago. Last time out CBS reported 57.63% above expectations, and over the last month the estimates for this quarter have risen by 2.96%. CBS is a Zacks #2 Ranked stock.
- Cigna (NYSE: CI) is expected to report EPS of $1.29 versus $1.38 a year ago. Last time out CI reported 25.69% above expectations, and over the last month the estimates for this quarter have risen by 1.22%. CI is a Zacks #2 Ranked stock.
Potential Negative Surprises
- MEMC Electronic Materials (NYSE: WFR) is expected to report EPS of $0.08 versus a loss of $0.03 a year ago. Last time out WFR reported 25.0% below expectations, and over the last month the estimates for this quarter have plunged by 27.3%. WFR is a Zacks #5 Ranked stock.
- XL Group (NYSE: XL) is expected to report EPS of $0.48 versus $0.71 a year ago. Last time out XL reported 18.18% below expectations, and over the last month the estimates for this quarter have dropped by 9.24%. XL 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 (+3% versus +10%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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Contact: Dirk Van Dijk, CFA
SOURCE Zacks Investment Research, Inc.