Yahoo Finance

The bulk of the earnings season is behind us with almost 82% of the total S&P 500 index members having released their results through May 5. The retail sector, however, has a significant number of earnings releases left.

Per the latest Earnings Preview, 412 S&P 500 companies reported their earnings so far with 73.3% topping bottom-line estimates and 67.7% coming in ahead of top-line expectations. The overall report suggests that earnings results are expected to move up 12.7%, with an increase of 6.2% in revenues from the same period last year. 

For the first quarter as a whole, about three of the 16 Zacks sectors are expected to witness an earnings decline, with Autos and Transportation being the biggest drag.

The Business Services sector is looking reasonably good this quarter. For the sector, earnings are expected to grow 10.2% year over year while sales are touted to rise 2.7%, driven by higher capital investments. The primary growth drivers in this highly-fragmented sector hinge on a healthy economy with decent prospects for job growth, higher disposable income and new business initiatives. There were approximately 178,000 job additions per month in the quarter. Unemployment rate rose marginally to 4.5% in March due to higher participation rate of 63% as more people looked for work, a clear indication that the economy is improving. Enjoying the fruits of a resurgent job market, low inflationary pressures and cheaper oil bills, consumer confidence also held its fort.

Let’s have a sneak peek at five major Business Services stocks scheduled to report first-quarter 2017 earnings tomorrow to see how things are shaping up for the upcoming results.

Randstad Holding NV RANJY operates as a global provider of HR services. Per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for it to beat estimates. For the quarter, this Zacks Rank #2 stock has an Earnings ESP of 0.00%, making an earnings prediction uncertain. Over the trailing four quarters, the company has beaten estimates once, with an average positive surprise of 9.26%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter

Randstad Holding NV Price and EPS Surprise

Randstad Holding NV Price and EPS Surprise | Randstad Holding NV Quote

Adecco Group AG AHEXY offers a wide variety of services that connects colleagues with clients every day. We remain inconclusive on earnings beat prediction this quarter as the company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.