Stocks to watch for Friday, Oct. 17, 2014: The Q3 earnings parade on Wall Street continues Friday.
This week brought a slew of earnings reports. Some 127 companies announced results, including 52 Standard & Poor's 500 Index members. The financial industry was heavily represented this week, along with a number of key bellwethers in several sectors.
Today's hot stocks to watch include a couple of major global infrastructure companies, a key investment bank, a couple of regional banks, and a freight rail transporter.
7 Hot Stocks to Watch Today
Hot Stocks to Watch No. 1: General Electric Co. (NYSE: GE) reports Q3 results before the open. Analysts are looking for the conglomerate to post earnings per share (EPS) of $0.37, up from $0.36 in the same quarter a year ago. Whisper numbers are for EPS of $0.38. GE was busy in the last quarter. The company announced it would acquire the world's largest helicopter leasing company, by fleet, for $1.775 billion. The helicopters are typically used to transport workers and supplies to oil platforms and emergency medical services and for search and rescue. GE also reached a deal to sell its GE Appliance unit to Electrolux for $3.3 billion. In addition, GE spun off its consumer finance unit Synchrony Financial (NYSE: SYF). Shares are down 13.45% year to date.
Hot Stocks to Watch No. 2: Morgan Stanley (NYSE: MS) is scheduled to post Q3 numbers Friday morning. Expectations are for the investment bank to report EPS of $0.55, up from $0.50 in the same quarter a year ago. Whisper numbers have MS beating EPS estimates by a nickel. Revenue is seen coming in at $8.17 billion. The Manhattan-based bank is expected to show robust performance in its trading units. Morgan Stanley's quarterly profit more than doubled in Q2 as stronger performances by its investment banking and wealth management businesses more than made up for a fall in revenue from bond trading. Analysts view Morgan Stanley with 9 "Buys," 9 "Holds," and 1 "Sell" rating, according to data from Analystratings.net.
Hot Stocks to Watch No. 3: Honeywell International Inc. (NYSE: HON) will report Q3 results before Friday's opening bell. The diversified technology and manufacturing company of engines, surveillance, aircraft lighting, and navigation systems is expected to post EPS of $1.41, up from $1.24 in the same quarter a year ago. Whisper numbers are for EPS of $1.43. In Q2, HON posted EPS of $1.38, beating consensus estimates by $0.02. Q2 revenue of $10.30 billion also beat forecasts of $10.19 billion. Earlier this month, Barclays reiterated its "Overweight" rating on HON with a $105 price target. The company has an average rating of "Buy" and median price target of $105. At $84.79, HON shares are off 7% year to date.
Hot Stocks to Watch No. 4: Bank of NY Mellon Corp. (NYSE: BK) reports Q3 results ahead of the opening bell. Analysts expect the NY-based bank to report EPS of $0.61, up from $0.60 in the same quarter a year ago. Whisper numbers are for EPS of $0.64. BNY Mellon recorded an earnings beat in all of the trailing last four quarters with an average positive surprise of 1.70%. The mean analyst recommendation on BK is a "Hold."
Hot Stocks to Watch No. 5: SunTrust Banks Inc. (NYSE: STI) reports Q3 numbers Friday morning. Expectations are for the Atlanta, Ga.-based bank to post EPS of $0.80, up handily from $0.66 in the same quarter a year ago. Whisper numbers are for EPS of $0.85. Boding well for STI heading into the release is that it has seen favorable earnings estimate revisions, generally a precursor to an earnings beat. The bank is expected to benefit from a rebounding housing market in Florida. Regional banks like STI contributed to the healthy rise in financial stocks in September. The group are deemed the purest play on rising interest rates.
Hot Stocks to Watch No. 6: Kansas City Southern (NYSE: KSU) is expected to report Q3 EPS of $1.26 per share Friday morning. Whisper numbers are for EPS of $1.28. Revenue is expected to come in at $670.60 million. Last month, KSU updated its full-year guidance due to strength in the grain and automotive commodity groups. The company now expects FY2014 EPS growth in the high teens. Last week, Barclays reiterated its "Equal Weight" rating on KSU with a $129 price target. And, BMO Capital Markets recently raised its price target on KSU to $120 from $115. The company has a mean analyst rating of "Hold" and median price target of $117.15. At $115, KSU shares are down 6.58% year to date.
Hot Stocks to Watch No. 7: M&T Bank Corp. (NYSE: MTB) reports Q3 results before the open. Analysts expect the Buffalo, N.Y.-headquartered bank to post EPS of $1.98. Whisper numbers are for EPS of $2.10. Last week, MTB reached a $3.1 million settlement with the Consumer Financial Protection Bureau for marketing no-fee checking accounts the government said weren't always free, signaling the new regulator intends to closely monitor bank product claims. The consumer regulator's action against M&T Bank was the first of its kind against a bank over checking-account marketing. MTB has a consensus analyst recommendation of "Hold."
Don't Miss Today's Top Story: Ebola may be the most serious threat to humanity since the bubonic plague of the Middle Ages. But out of chaos comes opportunity - here are three tactics you can use to trade the Ebola stock market sell-off for maximum profit...