The Q4 earnings season approaches, with a few notable top-ranked Zacks stocks set to release their quarterly results next Tuesday, January 23. As investors prepare to navigate the market waters amidst rising and sinking tides, three stocks stand out with the promise of buoyancy. While each of these stocks brims with potential, it’s worth tracking Steel Dynamics, Netflix, and General Electric in the coming week as they might set sail for new heights if they unfurl favorable Q4 results and offer positive financial guidance.
Steel Dynamics (STLD)
Leading steel producer Steel Dynamics touts a Zacks Rank #1 (Strong Buy) ahead of its Q4 report, underlining its appeal as a sound long-term investment. The company’s rising earnings estimates fortify the rationale that STLD shares are undervalued. While Steel Dynamics’ bottom line is forecasted to wane amidst falling steel prices and subsiding inflation, the stock is trading at a compelling 10.5X forward earnings multiple. Notably, Q4 EPS estimates have surged 18% in the last 60 days, soaring from $2.23 a share to $2.63 per share. Furthermore, annual earnings estimates for fiscal 2023 have ascended by 2% over the past two months, with FY24 EPS estimates escalating by 10%. These projections hint at the company’s potential to offer guidance that exceeds market expectations.
Netflix (NFLX)
Netflix, currently boasting a Zacks Rank #2 (Buy), shifts its focus to financial performance following the cessation of providing subscriber growth outlook. The company anticipates substantial quarterly growth, underscoring its lofty yet justifiable valuation. Projections for Q4 EPS indicate a meteoric rise to $2.20 a share from $0.12 a share in the corresponding quarter of the previous year. Additionally, Q4 sales are expected to climb by 11% to $8.72 billion. Looking ahead, annual earnings for fiscal 2023 are projected to surge by 22%, alongside an estimated 32% expansion in FY24 EPS to $18.07 per share. These promising figures are expected to be complemented by a 6% increase in top-line growth for FY23, with total sales forecasted to leap by 14% this year to $38.4 billion.
General Electric (GE)
Diversified conglomerate General Electric, with a Zacks Rank #2 (Buy), merits attention ahead of its Q4 report. The company’s broad market presence continues to uphold its bottom line despite a projected decline in Q4 earnings to $0.90 a share from $1.24 per share in the corresponding quarter. Nonetheless, annual earnings are expected to rise by 1% for FY23, with EPS forecasted to surge by 69% in FY24 to $4.49 per share. Notably, General Electric has surpassed earnings expectations for four consecutive quarters, delivering an average earnings surprise of 53.42%.
Bottom Line
As the stage is set for the impending earnings releases, investors would do well to closely monitor the performances of Steel Dynamics, Netflix, and General Electric. Their potential to make significant waves in the market makes them stock options that might crest higher, underscoring the importance of prudent consideration before making any investment decisions.
