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From Alcoa to Wells Fargo: Prepare for Q4 Earnings

January 7, 2014

Earnings season is upon us and you can bet that it is going to spur some big swings in the market. While the Fed was Wall Street's obsession in 2013, I expect corporate profits to take center stage in 2014. After a five-quarter earnings drought for the S&P 500, growth finally materialized in the third quarter, and earnings are expected to significantly improve from the fourth quarter and then again in every single quarter in 2014. With the U.S. dollar near a one-year low against a broad basket of 15 major currencies, many multinational companies are benefitting from a "currency tailwind."

So I expect the fourth-quarter earnings season to be even more eventful than the last. To prepare for this, let's preview some of the biggest earnings announcements coming at us over the next few trading days. I'll provide what the analyst community's expectations are for each stock plus my take on whether the upcoming earnings announcement is a buying opportunity.

The Good


Company Name Earnings Date Estimated Sales Growth Estimated Earnings Growth Recommendation
AXP American Express Co. 16-Jan 5.0% 14.7% Buy
BBBY Bed Bath & Beyond Inc. 8-Jan 6.8% 11.7% Buy
SCHW Charles Schwab Corp. 13-Jan 14.4% 40.0% Buy
SVU SUPERVALU Inc. 9-Jan -48.8% 333.3% Buy
UNH UnitedHealth Group Inc. 16-Jan 12.4% 1.3% Buy
WEN The Wendy's Co. 13-Jan -2.7% -33.3% Buy
WFC Wells Fargo & Co. 14-Jan -5.9% 6.5% Buy

The Bad


Company Name Earnings Date Estimated Sales Growth Estimated Earnings Growth Recommendation
BAC Bank of America Corp. 15-Jan -1.7% 800.0% Hold
BK Bank of New York Melon Corp. 17-Jan 2.3% 3.8% Hold
COF Capital One Financial Corp. 16-Jan -2.8% 9.2% Hold
CSX CSX Corp. 15-Jan 1.7% -2.3% Hold
FDO Family Dollar Stores Inc. 9-Jan 3.4% 0.0% Hold
GE General Electric Co. 17-Jan 2.3% 20.5% Hold
GS Goldman Sachs Group Inc. 16-Jan -17.4% -26.1% Hold
INTC Intel Corp. 16-Jan 1.8% 8.3% Hold
JPM JPMorgan Chase & Co. 14-Jan -2.2% -4.3% Hold
MON Monsanto Co. 8-Jan 4.5% 3.2% Hold
MS Morgan Stanley 17-Jan 7.5% 4.4% Hold
TXI Texas Industries Inc. 8-Jan 31.9% 33.3% Hold

The Ugly


Company Name Earnings Date Estimated Sales Growth Estimated Earnings Growth Recommendation
AA Aloca Inc. 9-Jan -8.5% 0.0% Sell
C Citigroup Inc. 16-Jan -1.1% 49.3% Sell
FAST Fastenal Co. 13-Jan 8.4% 6.1% Strong Sell
KMI Kinder Morgan Inc. 15-Jan 23.8% 2.9% Sell
RT Ruby Tuesday Inc. 8-Jan -11.1% -300.0% Strong Sell
STI SunTrust Banks Inc. 17-Jan -11.2% 6.2% Sell


Louis Navellier

Louis Navellier

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