This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

8 Top-Rated Stocks With the Best Earnings Outlooks

Stocks in this article: FAST IBM ADP CVS NKE TGT DIS CHRW

4. CVS Caremark (CVS)

Company profile: CVS, with a market value of $60 billion, is one of the nation's largest retail pharmacy chains now coupled with one of its biggest pharmacy benefit managers, after its 2007 merger with Caremark.

Dividend Yield: 1.35%

Investor takeaway: Its shares are up 19% this year and have a three-year, average annual return of 17%. S&P rates it "strong buy" with five stars and a $56 price target, which is a 19% premium to its current price of $47. Analysts give its shares 10 "buy" ratings, 10 "buy/holds," and four "holds," according to S&P.

Analysts' consensus estimate is for earnings of 80 cents per share in the second quarter, an 11% rise year-over-year, on the way to $3.33 per share for the year, a rise of 13% over last year.

3. International Business Machines (IBM)

Company profile: IBM is one of the world's largest and most respected information technology companies. Its product line includes system hardware, infrastructure software, outsourcing, and systems integration services. Customers tend to stick with Big Blue after spending on one of its typically expensive systems, which means steady, recurring revenue for the company. Its geographic and product diversity helps it stay stable and predictable in any economy.

Dividend Yield: 1.44%

Investor takeaway: Its shares are up 7.4% this year and have a three-year, average annual return of 26%. Analysts give its shares eight "buy" ratings, four "buy/holds," 15 "holds," one "weak hold," and one "sell," according to a survey of analysts by S&P.

S&P has it "buy" rated with four stars and a $227 price target, which is a 16% premium to the current price. Analysts' consensus estimate is for earnings of $15.05 per share this year, which is 15% growth, and $16.52 next year, or 10% growth. IBM has set a goal of operating earnings of $20 per share by 2015.

2. Fastenal (FAST)

Company profile: Fastenal, with a market value of $12 billion, provides building industry and industrial customers with all types of fasteners such as nails and screws as well as general-purpose maintenance, repair, and operations items. With more than 2,600 store and distribution locations, it generated $2.8 billion in revenue in 2011. The company's results are closely tied to that of the construction industry, which is performing slower than expected.

Dividend Yield: 1.67%

Investor takeaway: Its shares are down 6% this year, but have a three-year, average annual return of 39% and over 15 years have an average annual return of 18%, one of the best records you will find. Analysts give its shares two "buy" ratings, nine "holds," and two "weak holds," according to a survey of analysts by S&P.

S&P has it rated "strong buy," with five stars and a $60 price target, which is a 48% premium to its current price of $40.68. For fiscal 2012, analysts estimate it will earn $1.44 per share, including 37 cents in the second quarter, which is up 19% over last year. It's expected to grow annual earnings by 19% to $1.71 per share in 2013.

1. Walt Disney (DIS)

Company profile: Walt Disney, with a market value of $86 billion, is a media and entertainment conglomerate with diversified global operations in theme parks, cruise lines, filmed entertainment, television broadcasting and merchandise licensing. Media networks make up 46% of revenues and 70% of operating earnings and include the ABC broadcast network; 10 TV stations; and majority stakes in the cable networks ESPN, The Disney Channel and ABC Family.

Dividend Yield: 1.25%

Investor takeaway: Its shares are up 28% this year and have a three-year, average annual return of 29%. Analysts give its shares nine "buy" ratings, 10 "buy/holds," and 15 "holds," according to a survey of analysts by S&P. S&P has it rated "strong buy" with five stars and a $52 price target, an 8% premium to the current price. Analysts expect it to earn $2.99 per share this fiscal year (it reported 63 cents in its second fiscal quarter) up 19% from last year.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs