Fourth-quarter 2024 earnings results have come in line with expectations so far. Looking at the fourth quarter as a whole, total earnings for the S&P 500 Index are expected to be up 8.5% from the same period last year on 4.8% higher revenues. This follows 8.4% year-over-year EPS growth on 5.5% higher revenues in the previous quarter.
Meanwhile, three momentum stocks with a favorable Zacks Rank are set to beat on earnings this month. An earnings beat is likely to generate more momentum in these stock prices. These stocks are Alcoa Corp. AA, PACCAR Inc. PCAR and Deckers Outdoor Corp. DECK.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
Buy 3 Momentum Stocks Ahead of Earnings Results
We have narrowed our search to three momentum stocks set to report earnings results this month. These stocks carry a Zacks Momentum Score of either A or B. Moreover, each of these stocks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better (Rank #1 or 2) and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Alcoa Corp.
Zacks Rank #1 Alcoa produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. AA operates through two segments — Alumina and Aluminum. AA is engaged in bauxite mining operations, processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.
An increase in demand for aluminum in both Europe and North America is expected to have benefited AA’s Aluminum segment in the fourth quarter of 2024. Also, solid momentum in the building & construction markets and recovery in the packaging sector are likely to have aided the Aluminum segment’s sales.
Synergistic gains from the acquisitions made by the company are expected to have boosted revenues. In August 2024, Alcoa acquired Alumina Limited. This acquisition has enhanced AA’s position as a pure-play and upstream aluminum company worldwide. AA has an Earnings ESP of +2.76%. The company will report on Jan. 22, after the closing bell.
AA Stock’s Earnings Estimate Revisions on the Rise
For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $3.38 billion, suggesting an improvement of 30.1% year over year and earnings per share of $0.91, indicating an increase of 262.5% year over year. The company pulled off positive earnings surprises in three of the last four reported quarters and missed in the other, delivering an average beat of 51.5%.
Moreover, Alcoa has witnessed positive earnings estimate revisions for 2024 in the last seven days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 11.5% and more than 100%, respectively, for revenues and EPS in 2024. The current Zacks Consensus Estimate for 2025 revenues and EPS reflects an upside of 9.4% and more than 100%, respectively.
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PACCAR Inc.
Zacks Rank #2 PACCAR is one of the leading names in the trucking business, with reputed brands like Kenworth, Peterbilt and DAF. Continued growth in PCAR’s aftermarket parts — a high margin and less cyclic business — bodes well. PCAR’s strong balance sheet adds to its strengths.
Accelerated efforts toward electrification, connected vehicle services and advanced driver-assistance system options are also praiseworthy. PCAR has an Earnings ESP of +1.19%. The company will report on Jan. 28, before the opening bell.
Strong Earnings Estimate Revisions for PCAR Shares
For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $7.44 billion, suggesting a decline of 13.4% year over year and earnings per share of $1.68, indicating a decrease of 37.8% year over year. However, the Zacks Consensus Estimate for fourth-quarter earnings has improved 0.6% in the last 30 days.
The company pulled off positive earnings surprises in three of the last four reported quarters and missed in the other, delivering an average beat of 7%. PACCAR has witnessed positive earnings estimate revisions for 2024 in the last 30 days. The current Zacks Consensus Estimate for 2025 revenues and EPS reflects an upside of 2.7% and -1.6%, respectively.
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Deckers Outdoor Corp.
Zacks Rank #1 Deckers Outdoor’s diverse brand portfolio, financial strength, and strategic growth initiatives make it a promising investment. Driven by DECK’s HOKA and UGG’s impressive growth, balanced channel performance, and successful global expansion, Deckers shows a well-executed strategy.
DECK’s focus on innovation, expansion of its consumer reach, and leveraging strong market trends positions it favorably for sustained success. DECK envisions a 12% increase in fiscal 2025 net sales. DECK has an Earnings ESP of +9.60%. The company will report on Jan. 30, after the closing bell.
Solid Earnings Estimate Revisions for DECK Stock
For third-quarter fiscal 2025, the Zacks Consensus Estimate currently shows revenues of $1.70 billion, suggesting an improvement of 9.1% year over year and earnings per share of $2.50, indicating a decrease of 0.79% year over year. The company pulled off positive earnings surprises in the last four reported quarters delivering an average beat of 7%.
At present, the Zacks Consensus Estimate indicates a year-over-year increase of 14.1% and 14.4%, respectively, for revenues and EPS in fiscal 2025 (ending March 2025). The current Zacks Consensus Estimate for fiscal 2026 revenues and EPS reflects an upside of 10.4% and 14.4%, respectively.
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