Stocks opened higher on Monday as investors seem to think the U.S.-led air strikes on Syria won’t lead to a much larger conflict. The strikes also coincided with the real start of first-quarter earnings season, which investors should use as a way to fight off the volatility that has plagued markets recently.
Earnings season kicked into gear last Friday when banking giants, JPMorgan Chase (JMPÂ -Â Free Report), Citigroup (CÂ -Â Free Report), and PNC Financial (PNCÂ -Â Free Report), reported their Q1 financial results. Going forward, investors should use this highly anticipated period to try to recoup any losses they might have suffered during the extended bearish run.
With that said, investors still need to be selective during earnings season and hunt for stocks that look poised to top quarterly earnings estimates. Conversely, investors should stay away from any companies that might disappoint by reporting lower-than-expected earnings results.
Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to surprise, in one way or the other.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Today, we are giving our readers a look at three stocks that look ready to post an earnings beat this week.
Check them out now:Â
1. Honeywell International (HON - Free Report)
Shares of Honeywell climbed on Monday, which might signal that investors have reason to be excited about the company famous for its thermostats and other control technologies for buildings, homes, and industries. Honeywell is indeed expected to see its revenues climb by 4.7% to reach $9.94 billion, based on our current Zacks Consensus Estimates. Meanwhile, the company’s earnings are projected to climb by 13.9% to $1.89 per share.
