5 Earnings to Watch Monday

NEW YORK (TheStreet) --WW Grainger (GWW), Packaging Corporation of America (PKG) and Steel Dynamics (STLD) are among the five stocks reporting quarterly earnings on Monday.

While some of these five stocks have upside potential of up to 45%, a few have already clocked significant gains during the past year. Moreover, some of these stocks are also trading at attractive valuations. A common characteristic for all of them is the expectation of robust quarterly results, implying strong potential upside.

These five stocks are stacked based on their earnings release date, starting earliest.

5. WW Grainger ( GWW) is a distributor of maintenance, repair and operating supplies and other related products and services used by businesses and institutions, primarily in the U.S. and Canada.

Net income for the first quarter of 2011 is forecast at $128.8 million on sales of $1.85 billion, compared to net income of $99.2 million on $1.67 million sales recorded during the 2010 first quarter, according to analysts polled by Bloomberg. Earnings per share are pegged at $1.8, up from $1.31 reported during the comparable quarter last year.

Of the 18 analysts covering the stock, 44.4% recommend a buy, while 44.4% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 2.5% to $145.83 in value from current levels. The stock has gained 32% during the past year and currently trades at a P/E of 20.9.

4. Packaging Corporation of America ( PKG) is a producer of containerboard and corrugated products in the U.S.

For 2011 first quarter, net income is estimated at $41.2 million on sales of $617.4 million, higher than the $19.2 million net income recorded on $550.7 million in sales for the same period in 2010, as per analysts polled by Bloomberg. Earnings per share are forecast at 41 cents for the quarter, compared to 19 cents registered in 2010.

Of the 12 analysts covering the stock, 75% recommend a buy, while the remaining rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 23% to $34.17 in value from current levels. The stock is currently trading at a P/E of 17.2.

3. Steel Dynamics ( STLD) is a steel producer and metals recycler. The company's primary revenue sources are the manufacture and sale of steel products, processing and sale of recycled ferrous and nonferrous metals, and fabrication and sale of steel joist and decking products. The company operates in three segments: steel operations, metals recycling and ferrous resources operations, and steel fabrication.

First-quarter sales are projected at $1.95 billion vs. $1.56 billion recorded during the same period a year ago, as per analysts polled by Bloomberg. Moreover, earnings are expected to surge to $95.7 million, or 41 cents per share, from $65 million, or 29 cents per share during the first quarter of 2010.

Of the 10 analysts covering the stock, 80% recommend a buy, while 10% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 24% to $22.17 in value from current levels. The stock has lost 1.4% during the past year.

2. Halliburton ( HAL) is an oilfield services company, reporting revenues in two business segments: completion and production, and drilling and evaluation. The company provides a range of services and products for the exploration, development and production of oil and natural gas worldwide.

Net income for the first quarter of 2011 is forecast at $536.4 million on sales of $4.88 billion, compared to net income of $206 million on $3.76 billion in sales recorded during the 2010 first quarter, according to analysts polled by Bloomberg. Earnings per share are estimated to more than double to 58 cents from 23 cents per share reported during the comparable quarter last year.

Of the 37 analysts covering the stock, 89% recommend a buy, while the remaining rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 26% to $58.1 in value from current levels. The stock has already gained 42% during the past year and currently trades at a P/E of 19.9.

1. Oplink Communications ( OPLK) designs, manufactures and sells optical networking components and subsystems. The company's products expand optical bandwidth, amplify optical signals, monitor and protect wavelength performance, redirect light signals, ensure signal connectivity and provide signal transmission and reception within an optical network.

Sales for first-quarter 2011 are expected at $53.1 million, compared to $33.6 million recorded in the year-ago quarter, based on consensus estimates of analysts polled by Reuters. Earnings are projected to grow several times to $10.2 million, or 48 cents per share, compared to $2.6 million, or 12 cents a share, during the year-ago quarter.

Of the five analysts covering the stock, 60% recommend a buy, while the remaining rate it a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 45%, to $26.65 in value from current levels. The stock has shed 6% during the past year.

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