These 3 Stocks Beat Q1 Earnings Estimates

May 17, 2019
869 Views

The following  3 stocks surprised the market this year, reporting better than expected earnings to make them strong picks today.

Revenue is a major factor that comes into every stock buying decision. A company’s ability to generate sales is linked to profitability and sustainability. Analyst estimates are often used to determine the viability of a stock, but they don’t always get things right.

Lockheed Martin Corp. (NYSE: LMT)

Defense and aerospace company Lockheed Martin Corp. beat the Wall Street consensus by 14% in its last earnings report. The company generated $14.33 billion in revenue, compared to an estimate of $12.58 billion.

Defense contractors are seen as strong defensive picks in today’s market. An increase in military spending could see Lockheed Martin’s revenues continue to grow in the mid-term future. This stock also pays a healthy dividend with a yield of 2.59%, making it a great option for an income portfolio.

Pioneer Natural Resources Co. (NYSE: PXD)

This oil and gas exploration company has benefited from growth in the shale oil industry, sending its revenues soaring when compared to analyst expectations. Pioneer Natural Resources Co. reported $2.41 billion of revenue in the previous quarter, compared to the analyst consensus of $1.75 billion. This was 38% over expectations, giving the market a huge boost of confidence.

The oil and gas industries are expected to continue their growth into 2019 and beyond, even with the current volatility of crude oil prices. Pioneer is given a strong BUY rating by 33 of 42 top analysts on FactSet today. The average target price of $203.45 represents a potential 26.71% gain over the current trading price.

Fifth Third Bancorp (NASDAQ: FITB)

Retail and commercial banking company Fifth Third Bancorp has potential for both stock growth and long-term income. The bank reported revenue of $2.18 billion in the last quarter, compared to a consensus estimate of $1.65 billion. The 32% earnings beat hasn’t affected stock price as much as expected, so investors can still pick this up for a relative bargain today.

A dividend of $0.22 results in an above average yield of 3.23%.

 3 Stocks Earnings Overall Better Than Expected

Economists feared that slowed GDP growth and gradual adjustment to lower corporate taxes would harm earnings in 2019. The latest data shows that there’s still life in the market and the economy, with plenty of strong stock picks and dividend options for investors today.

 

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