Stocks to watch, Thursday Oct. 30: This week, 158 companies in the S&P 500 will report Q3 earnings, according to FactSet.
At the start of the week, 213 companies in the broad-based index had reported Q3 results and put the benchmark on pace for 5.6% earnings growth. That was up from projected growth of 4.5% before earnings season kicked off.
Today we hear from a coffee titan, a credit card giant, a tobacco king, a precious metal miner, and more.
9 Hot Stocks to Watch Thursday
Hot Stocks to Watch No. 1: Altria Group Inc. (NYSE: MO) reports Q3 numbers before today's open. Analysts are looking for the tobacco titan to post earnings per share (EPS) of $0.68, up from $0.65 in the same quarter a year ago. A favorite among yield-hungry investors, thanks to its 4.37% yield, MO also has a number of analysts who are fans. Earlier this month, Cowen & Co. raised their rating on MO to "Outperform," and hiked its price target to $53 from $47. In September, Bank of America upgraded shares to "Buy" from "Neutral," with a $50 price target. Money Morning Chief Investment Strategic Keith Fitz-Gerald says MO is the best high-yield stock to buy now. At $47.76, shares are up 24.11% year to date.
Hot Stocks to Watch No. 2: Starbucks Corp. (Nasdaq: SBUX) posts fiscal Q4 numbers after Thursday's close. Wall Street is looking for the coffee king to report EPS of $0.74, up from $0.63 in the same quarter a year ago. Whisper numbers are for EPS of $0.75. Revenue is seen growing 11.6% year over year (YOY) to $4.23 billion. Comparable sales, however, may disappoint by rising just 5.3%, down from 7% YOY. Heading into the quarter, analysts are bullish on Starbucks with 16 "Buy," three "Hold," and just one "Sell" rating. Shares are down 1.39% year to date.
Hot Stocks to Watch No. 3: MasterCard Inc. (NYSE: MA) will report Q3 results Thursday morning. Forecasts are for EPS of $0.78, up from $0.73 in the same quarter a year ago. Whisper numbers are for EPS of $0.80. Q2 results were solid, with revenue rising 13% to $2.4 billion and EPS up 14% YOY. Processed transactions grew 12% YOY to a whopping 10.6 billion. The credit card giant also provided rosy forward guidance for the full year after the strong quarter. Shares are down 8.29% year to date.
Hot Stocks to Watch No. 4: Time Warner Cable Inc. (NYSE: TWC) reports Q3 results before Thursday's opening bell. Expectations are for EPS of $1.90, up substantially from $1.64 in the same quarter a year ago. Whisper numbers are for EPS of $1.92. TWC sorely missed consensus forecasts in July when it reported net income of $1.76 a share, well short of the $1.90 per share expected. What will be at the forefront of investors' minds (earnings and revenue aside) is an update on when and if TWC will be acquired by Comcast Corp. (Nasdaq: CMCSA). Shares are up 5.82% year to date.
Hot Stocks to Watch No. 5: ConocoPhillips (NYSE: COP) reports Q3 numbers Thursday morning. Analysts expect the oil giant to post EPS of $1.20, down from $1.47 a year ago. Whisper numbers are for EPS of $1.22. Revenue is seen coming in at $13.6 billion, down from $15.4 billion YOY. Shares are up a slim 1% year to date. But they have fared better than the overall energy sector, which has slumped along the 25% slip in oil prices since June. COP has a mean analyst rating of "Buy," according to Zachs.
Hot Stocks to Watch No. 6: Newmont Mining Corp. (NYSE: NEM) is on tap to post Q3 figures after today's close. Analysts expect the precious metals miner to report EPS of $0.16, down considerably from $0.46 reported in the same quarter a year ago. EPS whisper numbers are a bit more upbeat at $0.18. Ahead of the release, HSBC upgraded shares of NEM to "Overweight" from "Neutral" with a $26 price target. Last week, Citigroup boosted its rating on NEM to "Buy" from "Neutral." Shares are down 7.29% year to date.
Hot Stocks to Watch No. 7: National Oilwell Varco Inc. (NYSE: NOV) is scheduled to release results before today's opening bell. Forecasts are for EPS of $1.53, up from $1.34 in the same quarter a year ago. In late September, the company announced an ambitious $3 billion stock repurchase program. "This authorization comes after several months of careful consideration and reflects the company's strong financial condition, and the confidence that we have in our future business outlook," said Chief Executive Officer Clay C. Williams. NOV has an average "Buy" recommendation from the 27 firms covering the stock. Shares are up 2.53% year to date.
Hot Stocks to Watch No. 8: Pitney Bowes Inc. (NYSE: PBI) will post Q3 results Thursday morning. Wall Street expects EPS of $0.46, matching EPS numbers reported in Q2. The technology solutions company turned in revenue of $958.5 million last quarter, beating forecasts of $955.73 million. Zacks rates PBI a "Neutral," with a $27 price target. At $25.14, shares are up 8% year to date.
Hot Stocks to Watch No. 9: Eastman Chemical Co. (NYSE: EMN) will release Q3 results after today's close. Expectations from the global specialty chemical company are for EPS of $1.80, up from $1.68 a year ago. Whisper numbers are for EPS of $1.83. Revenue is seen rising 3% YOY to $2.41 billion. At present, nine analysts rate EMN a "Buy," and four have "Hold" on EMN. No analyst rates it a "Sell." Shares are down 6.78% year to date.
Now for Money Morning's "Investor Tip of the Day": The market remains jittery after this month's stock market sell-off. Yesterday's Fed statements have caused many people to be more cautious than ever.
But our Chief Investment Strategist Keith Fitz-Gerald, who has analyzed markets for 33 years, says he expects the Fed to take it slow.
"This is the only option the Fed's got to keep people calm, keep the markets calm. Because they know what happens if they do get aggressive. The markets have a hiccup and a pull back. I don't think they want that right now."
As the Fed proceeds slowly, Fitz-Gerald recommends investors look to stocks that provide reliable profit streams and share growth no matter what the Fed does next year. In fact, the Dow's reaction to the Fed yesterday is a perfect example of why this stock is a great buy now...