Stocks to watch for Wednesday, Oct. 29, 2014: Third-quarter earnings overall have shown healthy growth for U.S. companies.
So far 71.4% of companies in the S&P 500 Index have topped Q3 earnings forecasts, better than the long-term average of 63%. Q3 earnings growth is currently on track for a gain of 7.7%.
Wednesday's hot stocks to watch include a credit card giant, a health insurer, a food and beverage manufacturer, and more...
Eight Hot Stocks to Watch on Wednesday
Hot Stocks to Watch No. 1: Visa Inc. (NYSE: V) will report fiscal Q4 results after today's closing bell. Wall Street is looking for the credit card giant to post earnings per share (EPS) of $2.10, up from $1.85 in the same quarter a year ago. Whisper numbers are for EPS of $2.12. Revenue is seen climbing 5% year over year (YOY) to $3.15 billion. Visa last week hiked its quarterly dividend 20%, or $0.08, to $0.48 a share. Analysts are bullish on Visa, with 19 "Buys" and five "Holds." Shares are off 4.16% year to date.
Hot Stocks to Watch No. 2: WellPoint Inc. (NYSE: WLP) reports Q3 numbers before today's open. Forecasts are for EPS of $2.27 a share, up substantially from $2.10 in the same quarter a year ago. Whisper numbers are even more bullish at EPS of $2.38. The health insurer's strong membership is expected to have driven results, thanks to affordable healthcare expansion. Shares are up 30.25% year to date.
Hot Stocks to Watch No. 3: Kraft Foods Group Inc. (Nasdaq: KRFT) reports Q3 results after the close. Expectations are for EPS of $0.74, up from $0.70 in the same quarter a year ago. Whisper numbers are for EPS of $0.77. Revenue is seen rising 12% YOY to $822 million. "With evidence the U.S. food industry remains challenged, we expect the focus to be on volume, elasticity, and promo efficiency. We look for questions around input costs vs. productivity programs. Lastly, investors will likely look for guidance on industry trends and question how or if (after several years) Kraft is rebuilding brand equity," Deutsche Bank wrote last week in a report of food stocks. Shares are up 5.58% year to date.
Hot Stocks to Watch No. 4: Phillips 66 (NYSE: PSX) reports Q3 numbers before Wednesday's opening bell. Expectations are for EPS of $1.75, up handsomely from $0.75 in the same quarter a year ago. The oil giant yesterday announced it formed two joint ventures to develop the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects with Energy Transfer Partners LP (NYSE: ETP). Oil stocks have taken a shellacking this year, with oil prices off some 25% from their June high of $106. They fell further Tuesday when Goldman Sachs said it sees West Texas Intermediate Crude at $75 for 2015 and $80 for 2016. PSX shares are off 1.43% year to date.
Hot Stocks to Watch No. 5: Automatic Data Processing (Nasdaq: ADP) reports Q3 results Wednesday morning. Expectations are for EPS of $0.60, up from $0.55 in the same quarter a year ago. Revenue is expected to come in at $2.55 billion. The Roseland, N.J.-based company matched EPS forecasts of $0.63 last quarter, while revenue at $3.10 billion came in ahead of forecasts of $3.03 billion. Shares are up 7.88% year to date.
Hot Stocks to Watch No. 6: MetLife Inc. (NYSE: MET) reports Q3 results after today's close. Forecasts are for EPS of $1.38, up from $1.34 in the same quarter a year ago. Whisper numbers are for EPS of $1.40. The insurance giant is a favorite with analysts thanks to its modest price/earnings ratio and above-average dividend yield. Among industry experts that cover the stock, 19 rate shares a "Buy" and three a "Hold." Shares are off 4.53% year to date.
Hot Stocks to Watch No. 7: The Southern Co. (NYSE: SO) will release Q3 results before today's open. Analysts are looking for EPS of $1.07, down a penny from the same quarter a year ago. Whisper numbers are for EPS of $1.08. The Atlanta, Ga.-based utility company has a mean analyst recommendation of "Buy." Shares are up 15.15% year to date.
Hot Stocks to Watch No. 8: Einstein Noah Restaurant Group Inc. (Nasdaq: BAGL) reports Q3 results after today's close. Analysts expect the bagel chain operator to post EPS of $0.22. Late last month, JAB Holding Co., an affiliate of the private-equity firm Joh. A. Benckiser Group, announced it would take the bagel operator private. Einstein Noah is parent to the Einstein Bros. Bagels, Noah's New York Bagels, and Manhattan Bagel brands, which operate, franchise, and license more than 855 restaurants in 42 states and the District of Columbia, along with a dough-production facility. Under the agreement, JAB will acquire Einstein Noah's outstanding shares for $20.25 per share, which represents a premium of about 47% over the company's average trading price.
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