Thursday’s Hot Stocks to Watch Include AMZN, MSFT, GM, Airlines, and More

Stocks to watch for Thursday, Oct. 23, 2014: Q3 earnings season is just getting started. But already the S&P 500 Index looks on track to post Q3 earnings growth of 5.1% year over year (YOY). That's up from 4.5% before numbers starting rolling in, according to FactSet.

stocks to watchSeveral airlines report earnings Thursday. American Airlines Group Inc. (Nasdaq: AAL), United Continental Holdings Inc. (NYSE: UAL), Southwest Airlines Co. (NYSE:  LUV), Alaska Air Group Inc. (NYSE: ALK), and JetBlue Airways Corp. (Nasdaq: JBLU) all post results today.

Analysts expect top U.S. carrier American Airlines to show earnings growth of 10% to 12%, with earnings per share (EPS) of $1.63. United is seen nearly doubling EPS to $2.68. Southwest, the largest discount airline, is projected to boost EPS to $0.53. All are forecast to produce higher revenue.

Today's hot stocks to watch also include a couple of tech heavyweights, a key automaker, a pair of drug giants, and more.

Eight Hot Stocks to Watch Thursday

Hot Stocks to Watch No. 1: Amazon.com Inc. (Nasdaq: AMZN) reports Q3 results after the close. Analysts expect the online e-commerce giant to post an EPS loss of $0.74, up from a $0.09 per share loss in the same quarter a year ago. Loss estimates have grown dramatically from $0.08 in late June, after AMZN in July projected a Q3 operating loss of $410 million to $810 million. Revenue, however, is seen rising to $20.8 billion from $17.1 billion, according to FactSet. That's in-line with AMZN's forecast of $19.7 billion to $21.5 billion. Investors will be listening to how AMZN's new purchases and initiatives have been performing. Over the summer, AMZN bought video streaming site Twitch for some $1 billion. It also unveiled AMZN Local Register, aimed at small businesses and mobile payments. Plus, AMZN expanded its same-day delivery service. Shares are down 21% year to date.

Hot Stocks to Watch No. 2: Microsoft Corp. (NYSE: MSFT) will post Q3 numbers after the closing bell. Expectations are for the tech behemoth to report EPS of $0.49, down from $0.62 in the same quarter a year ago. Whisper numbers are for EPS of $0.50. Revenue is forecast to come in at $22.01 billion, a 19% YOY increase. Under Chief Executive Officer Satya Nadella, MSFT has placed a keen focus on the mobile and cloud markets. Investors will be listening for updates on both shifts. The company also plans to launch a smartwatch soon, so an update on a debut date is expected. Shares are up 20% year to date.

Hot Stocks to Watch No. 3: General Motors Co. (NYSE: GM) posts Q3 results today before the bell. Analysts are looking for the beleaguered auto manufacturer to report EPS of $0.99, up from $0.96 in the same quarter a year ago. Whisper numbers are for EPS of $0.96. Revenue is seen rising a slim 1.6% year over year, with sales coming in at $39.6 billion versus $38.96 billion. GM has missed revenue estimates by over $1 billon in each of the first two quarters of 2014. Without question, it's been a difficult year for GM. The company has recalled more than 30 million cars this year, with ignition problems accounting for more than half. Shares are down a painful 25.63% year to date.

Hot Stocks to Watch No. 4: Caterpillar Inc. (NYSE: CAT) reports Q3 earnings before the open. Analysts are looking for the Dow component to post EPS of $1.36, down from $1.45 in the same quarter a year ago. Whispers number have CAT missing EPS by a nickel. Revenue is seen slipping 1.6% YOY to $13.2 billion. The Peoria, Ill.-based company is also expected to provide an updated FY2014 forecast. The average analyst recommendation on CAT is "Hold," according to Zacks. Shares are up 5.5% year to date.

Hot Stocks to Watch No. 5: Eli Lilly & Co. (NYSE: LLY) posts Q3 numbers before Thursday's open. The pharmaceutical giant is seen reporting EPS of $0.68, down from $1.11 in the same quarter a year ago. Disappointing results are widely expected due to a revenue decline from its key drug Cymbalta (used to treat depression), following the expiration of related patents earlier this year. Revenue is forecast to have dipped 16% YOY to $4.8 billion. On a positive note, the U.S. Food and Drug Administration accepted on Tuesday the filing of a New Drug Application for empagliflozin plus immediate-release metformin hydrochloride fixed-dose combination, an investigational compound being studied for the treatment of adults with type 2 diabetes. Empagliflozin plus metformin is part of the Boehringer Ingelheim and Eli Lilly and Co. diabetes alliance portfolio. LLY shares are up 28% year to date.

Hot Stocks to Watch No. 6: Celgene Corp. (Nasdaq: CELG) is on tap to report Q3 results before the opening bell. The biopharmaceutical company is expected to post EPS of $0.95, up handsomely from $0.78 in the same quarter a year ago. Whisper numbers are for EPS of $0.96. Revenue is seen jumping 16.8% to $1.96 billion. Shares spiked 8% earlier this week after the company rolled out more upbeat data on its new drug to treat Crohn's disease. CELG shares are up 13.36% year to date.

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Hot Stocks to Watch No. 7: Under Armour Inc. (NYSE: UA) is scheduled to post Q3 results Thursday morning. Analysts expect the athletic apparel maker to report EPS of $0.40. Whisper numbers are for EPS of $0.42. Deutsche Bank recently upgraded UA to "Buy" with a $78 price target. The firm sees athletic sector brand momentum extending into second half of 2014. Deutsche also said Under Armour is shifting from wholesale to retail. In doing so, analysts see UA's gross margins improving. In addition, Under Armour's move into women's products is gaining market share. Most importantly, analysts note that increased prices have not been met with consumer resistance. At $67.32, UA share are up a whopping 54.20% year to date.

Hot Stocks to Watch No. 8: The Chubb Corp. (NYSE: CB) will report Q3 numbers after the close. The insurance giant is expected to post EPS of $1.95. Whisper numbers have Chubb handily beating EPS forecast by $0.06. Last quarter, however, Chubb missed Q2 EPS forecasts by a wide $0.23. But, revenue of $3.22 billion beat estimates of $3.17 billion. Earlier this month, Citigroup reiterated its "Sell" rating on Chubb with an $88 price target. The mean analyst recommendation is "Hold." At $94.69, shares are off 2% year to date.

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