Watch out. Earnings season is an exciting time for investors who see an opportunity to benefit from mispricings and high (or low) expectations that fall short. If you're interested in trading earnings mispricing this week (Feb 26-29) we made a list that might help you round out your research.
While history is no guarantee of future performance, we compiled a list of stocks reporting later this week that have a history of disappointing investors with an average earnings surprise of at least -5% over the last five quarterly reports. Do you think the market is still overvaluing these names?
Use this as a starting point for your own analysis. List Average 1-Year Return: 9%
1. Expeditors International of Washington Inc. (EXPD): Provides logistics services in the United States and internationally. Market cap at $8.53B, most recent closing price at $40.81. In Dec 2011: Reported EPS at 0.43 vs. estimate at 0.47 (surprise of -8.5%). In Mar 2012: Reported EPS at 0.36 vs. estimate at 0.4 (surprise of -10%). In Jun 2012: Reported EPS at 0.39 vs. estimate at 0.43 (surprise of -9.3%). In Sep 2012: Reported 0.42 vs. estimate at 0.43 (surprise of -2.3%. [Average earnings surprise at -7.53%]. Reporting 2/26 2. Hospitality Properties Trust (HPT): Engages in buying, owning, and leasing hotels. Market cap at $3.31B, most recent closing price at $26.75. In Dec 2011: Reported EPS at 0.78 vs. estimate at 0.79 (surprise of -1.3%). In Mar 2012: Reported EPS at 0.78 vs. estimate at 0.79 (surprise of -1.3%). In Jun 2012: Reported EPS at 0.75 vs. estimate at 0.83 (surprise of -9.6%). In Sep 2012: Reported 0.74 vs. estimate at 0.78 (surprise of -5.1%. [Average earnings surprise at -4.32%].
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV