10 Diversified Stocks to Buy Ahead of Earnings

NEW YORK ( TheStreet) -- Nike ( NKE), Oracle ( ORCL), and Bed, Bath & Beyond ( BBBY) are among the 10 stocks reporting quarterly earnings next week.

These stocks, from the consumer goods and services and technology sectors, have upside potential ranging from 9% to 75% according to analysts' polled by Bloomberg. Among analysts' covering the stocks, an average of 67% issued buy ratings.

We present the stocks in order of their earnings release date.

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10. Red Hat ( RHI)makes open source software and services, including the Red Hat Linux operating system. Red Hat will announce third-quarter fiscal 2012 results on Dec. 19.

Net income for the quarter is estimated at $51.55 million, or 26 cents per share, compared to $39.06 million, or 20 cents per share, in the same quarter prior fiscal, according to analysts polled by Bloomberg. Sales are seen at $289.6 million, an increase of 23% from $235.6 million recorded in the earlier-year period.

Operating profit for the quarter is seen increasing 72% to $65.38 million from $37.96 million in the same quarter prior fiscal year. Meanwhile, return on equity is seen expanding to 8.85% from 8.38%, while return on assets is seen at 5.60%, compared to 5.00% earlier. Gross margin is pegged at 84.09% from 83.13% earlier.

Of the 25 analysts covering the stock, 68% recommend a buy and 24% suggest a hold. Analysts polled by Bloomberg expect the stock to gain an average 10.1% to $50.90 from current levels over the next 12 months.

9. Shuffle Master ( SHFL), a gaming supply company, provides products and services to the casino industry. It offers card shuffling systems and other equipment, table games and video game software. Shuffle will announce first-quarter fiscal 2012 results on Dec. 20.

Net income for the quarter is estimated at $9.35 million, or 18 cents per share, compared to $8.03 million, or 14 cents per share, in the same quarter prior fiscal, according to analysts polled by Bloomberg. Sales are seen at $61.13 million, an increase of 4% from $58.60 million recorded in the earlier-year period.

Operating profit for the quarter is seen increasing 34% to $13.45 million from $10.03 million in the same quarter prior fiscal. Meanwhile, gross margin is seen expanding to 60.70% from 59.99% earlier.

Of the seven analysts covering the stock, four recommend a buy and the rest suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 20.1% to $13.83 from current levels over the next 12 months.

8. Nike ( NKE) makes athletic shoes and related products. It sells its products through retail outlets, owned stores and distributors. The company will announce second-quarter fiscal 2012 results on Dec. 20.

Net income for the quarter is estimated at $457.5 million, or 97 cents per share, compared to $457.00 million, or 94 cents per share, in the corresponding quarter last year, according to analysts polled by Bloomberg. Sales are seen at $5.63 billion, up 16% from $4.84 billion recorded in the same quarter last year.

Operating profit is expected to rise by 4% to $603.22 million from $582 million in the year-ago quarter. EBITDA is seen rising 5% to $699.33 million from $665 million in the same quarter last year. Currently, the company has a dividend yield of 1.3%.

Of the 22 analysts covering the stock, 64% recommend a buy and the rest rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 12% to $105.35 from current levels over the next 12 months.

7. Oracle ( ORCL) makes business software. The company will announce second-quarter fiscal 2012 results on Dec. 20.

Net income for the quarter is estimated at $2.93 billion, or 57 cents per share, as compared to net income of $2.63 billion, or 51 cents per share, in the corresponding quarter prior fiscal, according to analysts polled by Bloomberg. Sales are seen at $9.23 billion, up 7% from $8.65 billion recorded in the earlier year's third quarter. Currently, the company has a dividend yield of 0.8%.

Operating profit for the quarter is pegged at $4.17 billion, an increase of 39% from $3.01 billion in same quarter last fiscal. Return on equity is seen expanding to 27.25% from 21.87%, while return on assets is seen at 16% from 11.19% earlier. Also, gross margin is seen increasing to 77.44% from 74.87% earlier.

Of the 44 analysts covering the stock, 82% recommend a buy, while 16% suggest a hold. Analysts polled by Bloomberg expect the stock to gain an average 25.4% to $36.41 from current levels over the next 12 months.

6. Bed, Bath & Beyond ( BBBY) operates a nationwide chain of retail stores selling home items, including furnishings, food, gift items, health and beauty care products and infant and toddler merchandise. BBBY will announce third-quarter fiscal 2012 results on Dec. 21.

Net income for the quarter is estimated at $213.72 million, or 88 cents per share, compared to $188.57 million, or 74 cents per share, in the same quarter last year, according to analysts polled by Bloomberg. Sales are seen at $2.35 billion, an increase of 7% from $2.19 billion recorded in the third quarter of fiscal 2011.

Operating profit for the period is seen growing 14% to $346.87 million. Return on equity during the quarter is expected to rise to 23.30% from 20.39% earlier, while return on assets is expected to have increased to 15.50% from 14%.

Of the 30 analysts covering the stock, 57% recommend a buy and 40% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 9.3% to $66.86 from current levels over the next 12 months.

5. Tibco Software ( TIBX) offers electronic business software products. TIBX will announce fourth-quarter fiscal 2011 results on Dec. 21.

Net income for the quarter is estimated at $60.33 million, or 26 cents per share, compared to $53.84 million, or 22 cents per share, in the same quarter prior fiscal, according to analysts polled by Bloomberg. Sales are seen at $281.23 million, an increase of 17% from $241.22 million recorded in the fourth quarter of fiscal 2010.

Gross margins are expected to increase to 77.41% from 76.03% in the same quarter prior year. Operating profit for the period is seen growing 45% to $83.6 million. The company expects a 55% increase in cash flow per share to 34 cents from 22 cents.

Of the 14 analysts covering the stock, 57% recommend a buy and 43% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 27.5% to $30.08 from current levels over the next 12 months.

4. Steel Case ( SCS) is an office furniture manufacturer. SCS will announce third-quarter fiscal 2012 results on Dec. 21.

Net income for the quarter is estimated at $24.93 million, or 19 cents per share, compared to $23.5 million, or 18 cents per share, in the same quarter prior fiscal, according to analysts polled by Bloomberg. Sales are seen at $707.33 million, an increase of 5% from $672.6 million recorded in the fourth quarter of fiscal 2011.

Operating profit for the period is seen growing 11% to $38.53 million. Return on equity during the quarter rose to 12.84% from negative 0.5% earlier, while return on assets increased to 4.55% from negative 0.2%. The company's book value per share is expected to have increased to $5.57 from $5.34.

Of the five analysts covering the stock, three recommend a buy and two rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 74.6% to $11.88 from current levels over the next 12 months.

3. Carmax ( KMX) buys, reconditions and sells used and new vehicles in its superstores and franchises in the U.S. KMX will announce third-quarter fiscal 2012 results on Dec. 21.

Net income for the quarter is estimated at $89.14 million, or 38 cents per share, compared to $82.36 million, or 36 cents per share, in the same quarter prior fiscal, according to analysts polled by Bloomberg. Sales are seen at $2.26 billion, an increase of 7% from $2.12 billion recorded in the third quarter of fiscal 2011.

EBITDA grew 12% to $166.17 million, as compared to $148.56 million. Operating profit for the period is seen growing 8% to $144.5 million. The company's cash value per share is expected to increase to 54 cents from negative 6 cents.

Of the 17 analysts covering the stock, 65% recommend a buy and 29% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 17.8% to $35.39 from current levels over the next 12 months.

2. Finish Line ( FINL) is a sports shoes and apparel retailer. FINL will announce third-quarter fiscal 2012 results on Dec. 21.

Net income for the quarter is estimated at $5.65 million, or 10 cents per share, compared to $4.13 million, or 8 cents per share, in the same quarter prior fiscal, according to analysts polled by Bloomberg. Sales are seen at $271.11 million, an increase of 4% from $260.93 million recorded in the third quarter of fiscal 2011.

Operating profit for the period is seen growing 36% to $8.83 million, from $6.51 million in third quarter of 2011. Return on equity during the quarter rose to 19.6% from 14.62% earlier, while return on assets increased to 16% from 10.25%. Book value per share is expected to increase to $9.20 from $8.78.

Of the 11 analysts covering the stock, 82% recommend a buy and 18% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 24.8% to $25.78 from current levels over the next 12 months.

1. InterXion ( INXN) operates data centers in Europe. INXN will announce third-quarter fiscal 2011 results on Dec. 21.

Net income for the quarter is estimated at $5.53 million, or 8 cents per share, compared to $5.94 million, or 2 cents per share, in the same quarter prior fiscal, according to analysts polled by Bloomberg. Sales are seen at $62.2 million, from $54.65 million recorded in the third quarter of fiscal 2010.

Operating profit for the period is seen at $14.8 million, growing from $12.61 million in third quarter of 2010. The company saw cash flow per share to 3 cents from 5 cents.

Of the 11 analysts covering the stock, 82% recommend a buy and 18% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 33.7% to $17.19 from current levels over the next 12 months.

>>To see these stocks in action, visit the 10 Diversified Stocks to Buy Ahead of Earnings portfolio on Stockpickr.

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