NEW YORK ( TheStreet) -- Earnings season is in full swing, and despite several strong earnings beats, stocks have been cooling off as investors look past fourth quarter results to 2011.
The S&P 500 is expected to finish 2010 with an EPS of about $80, a 30% growth over the previous year. But with topline growth yet to deliver, productivity gains waning and rising input costs, it might be tougher for corporate America to repeat the feat in 2011. The earnings of the top 500 are forecast to rise less than 15% in 2011 and by 12% in 2012, according to estimates from Bloomberg. Excluding financials, the S&P 500 companies are expected to post a 11% growth in 2011. That suggests that not all companies have a rosy outlook for earnings in the year ahead. Based on the earnings estimates for 2011, TheStreet came up with a list of 10 companies that have the most earnings upside potential in 2011. The shortlist tends to be skewed towards late-cycle plays -- companies that have been worst hit by the recession and that now have a shot at turning around as the economic picture brightens. The stocks of these companies themselves are not necessarily analyst favorites. Stock prices in many cases have run up ahead of earnings. Also, estimates are likely to be revised as fourth-quarter results and guidance for 2011 come in. The following should be on investors radar in the ongoing earnings season as management guidance and analyst upgrades and downgrades are sure to sway these stocks.