6 Stocks Reporting This Week With A History Of Upside

Do you prefer a stock on a winning streak?  Earnings season is winding down but there's still a chance to trade on big surprises. To help your search along we compiled a list of stocks reporting later this week (May 14 -17) that have a history of positively surprising the market. Do you think history has a way of repeating itself?

Stocks on this list 

We found companies that posted earnings per share above the expected number for a minimum of four consecutive quarters. A history of beating expectations implies the market is consistently undervaluing their strength. Investors must decide if such a history, and possibility of new disappointments, are worth trading on.

Business Section: Investing Ideas

Do you think these companies with consecutive positive earnings surprises will continue their streak?  The average one year return for the stocks on this list is 40% . Use this as a starting point for your own analysis.  

Interactive Chart: Use the Compar-O-Matic to observe average analyst recommendations for some of the companies listed below

1. Applied Materials Inc. ( AMAT): Provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide. Market cap at $17.96B, most recent closing price at $14.97.

In Apr 2012: Reported EPS at 0.27 vs. estimate at 0.24 (surprise of 12.5%). In Jul 2012: Reported EPS at 0.24 vs. estimate at 0.22 (surprise of 9.1%). In Oct 2012: Reported EPS at 0.06 vs. estimate at 0.03 (surprise of 100%). In Jan 2013: Reported 0.06 vs. estimate at 0.03 (surprise of 100%. [Average earnings surprise at 55.4%].

2. Brocade Communications Systems, Inc. ( BRCD): Supplies networking equipment comprising end-to-end Internet protocol based Ethernet and storage area networking solutions. Market cap at $2.54B, most recent closing price at $5.63.

In Apr 2012: Reported EPS at 0.15 vs. estimate at 0.12 (surprise of 25%). In Jul 2012: Reported EPS at 0.14 vs. estimate at 0.12 (surprise of 16.7%). In Oct 2012: Reported EPS at 0.17 vs. estimate at 0.14 (surprise of 21.4%). In Jan 2013: Reported 0.21 vs. estimate at 0.16 (surprise of 31.2%. [Average earnings surprise at 23.58%].

3. Jack in the Box Inc. ( JACK): Operates as a restaurant company that operates and franchises Jack in the Box restaurants. Market cap at $1.63B, most recent closing price at $37.43.

In Mar 2012: Reported EPS at 0.48 vs. estimate at 0.32 (surprise of 50%). In Jun 2012: Reported EPS at 0.42 vs. estimate at 0.35 (surprise of 20%). In Sep 2012: Reported EPS at 0.43 vs. estimate at 0.37 (surprise of 16.2%). In Dec 2012: Reported 0.54 vs. estimate at 0.39 (surprise of 38.5%. [Average earnings surprise at 31.17%].

4. Macy's, Inc. ( M): Operates department stores and Internet Web sites in the United States. Market cap at $18.49B, most recent closing price at $47.23.

In Apr 2012: Reported EPS at 0.43 vs. estimate at 0.4 (surprise of 7.5%). In Jul 2012: Reported EPS at 0.67 vs. estimate at 0.65 (surprise of 3.1%). In Oct 2012: Reported EPS at 0.36 vs. estimate at 0.3 (surprise of 20%). In Jan 2013: Reported 2.05 vs. estimate at 1.99 (surprise of 3%. [Average earnings surprise at 8.4%].

5. Prestige Brands Holdings, Inc. ( PBH): Engages in marketing, selling, and distributing over-the-counter healthcare and household cleaning products primarily in North America. Market cap at $1.47B, most recent closing price at $28.76.

In Mar 2012: Reported EPS at 0.26 vs. estimate at 0.23 (surprise of 13%). In Jun 2012: Reported EPS at 0.35 vs. estimate at 0.29 (surprise of 20.7%). In Sep 2012: Reported EPS at 0.42 vs. estimate at 0.33 (surprise of 27.3%). In Dec 2012: Reported 0.37 vs. estimate at 0.34 (surprise of 8.8%. [Average earnings surprise at 17.45%].

6. Zumiez, Inc. ( ZUMZ): Founded in 1978, is a mall-based specialty retailer providing sports-related apparel, footwear, equipment, and accessories. Market cap at $973.84M, most recent closing price at $32.30.

In Apr 2012: Reported EPS at 0.14 vs. estimate at 0.11 (surprise of 27.3%). In Jul 2012: Reported EPS at 0.17 vs. estimate at 0.13 (surprise of 30.8%). In Oct 2012: Reported EPS at 0.51 vs. estimate at 0.48 (surprise of 6.3%). In Jan 2013: Reported 0.76 vs. estimate at 0.73 (surprise of 4.1%. [Average earnings surprise at 17.12%].

- REBECCA LIPMAN, KAPITALL WIRE

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