Wall Street analysts have been lowering their earnings expectations ahead of Q3 earnings season. Fund managers too have been shifting their equity holdings into more defensive stocks with low earnings volatility.
However, the bar is now set low for stocks, argues Oppenheimer’s Chief Investment Strategist Brian Belski. If earnings beat expectations and stocks rally, fund managers–especially under performing fund managers–will allocate more aggressively.
One area of the stock market that could benefit are companies with positive earnings momentum trading at attractive valuations. Belski screened the S&P 500 for companies with above average earnings growth, better-than-expected earnings in its latest quarter, and above average upward revisions to next years’ earnings estimates. These stocks are priced above $5 per share and trade at less than 15 times forward earnings.
Belski found 24 picks fitting the bill.
Current Price: $422.00
Trailing Twelve Month EPS: $25.28
Trailing Twelve Month P/E Ratio: 16.83
Sector: Electronics
Products: Computers, Smartphones
Source: Oppenheimer, YahooFinance
Current Price: $56.67
Trailing Twelve Month EPS: $3.01
Trailing Twelve Month P/E Ratio: 18.00
Sector: Oilfield Services
Products: Drilling and Well Construction
Source: Oppenheimer, YahooFinance
Current Price: $61.17
Trailing Twelve Month EPS: $3.51
Trailing Twelve Month P/E Ratio: 17.38
Sector: Retail
Products: Home Goods
Source: Oppenheimer, YahooFinance
Current Price: $23.59
Trailing Twelve Month EPS: $1.73
Trailing Twelve Month P/E Ratio: 13.30
Sector: Media
Products: Television
Source: Oppenheimer, YahooFinance
Current Price: $150.50
Trailing Twelve Month EPS: $14.12
Trailing Twelve Month P/E Ratio: 10.38
Sector: Agriculture Products
Products: Nitrogen and Phosphate fertiliser
Source: Oppenheimer, YahooFinance
Current Price: $65.21
Trailing Twelve Month EPS: $11.03
Trailing Twelve Month P/E Ratio: 5.59
Sector: Mining and Natural Resources
Products: Iron Ore Pellets and Coal
Source: Oppenheimer, YahooFinance
Current Price: $97.60
Trailing Twelve Month EPS: $7.62
Trailing Twelve Month P/E Ratio: 12.22
Sector: Engines
Products: Diesel and Natural Gas Engines, Power Generators
Source: Oppenheimer, YahooFinance
Current Price: $16.62
Trailing Twelve Month EPS: $1.87
Trailing Twelve Month P/E Ratio: 8.60
Sector: Technology
Products: Personal Computers, Servers, Hardware
Source: Oppenheimer, YahooFinance
Current Price: $47.03
Trailing Twelve Month EPS: $3.03
Trailing Twelve Month P/E Ratio: 15.32
Sector: Satellite Television
Products: Satellite Provider, Regional Sports Network Operator
Source: Oppenheimer, YahooFinance
Current Price: $24.13
Trailing Twelve Month EPS: $3.75
Trailing Twelve Month P/E Ratio: 6.23
Sector: Financial
Products: Credit Cards, Student Loans
Source: Oppenheimer, YahooFinance
Current Price: $12.27
Trailing Twelve Month EPS: -$0.19
Trailing Twelve Month P/E Ratio: N/A
Sector: Tires
Products: Tire and Auto Services
Source: Oppenheimer, YahooFinance
Current Price: $591.68
Trailing Twelve Month EPS: $29.34
Trailing Twelve Month P/E Ratio: 19.92
Sector: Internet Services
Products: Online Search, Smartphone Operating System Provider
Source: Oppenheimer, YahooFinance
Current Price: $37.43
Trailing Twelve Month EPS: $2.62
Trailing Twelve Month P/E Ratio: 13.32
Sector: Oilfield Services
Products: Drilling and Evaluation Services
Source: Oppenheimer, YahooFinance
Current Price: $48.52
Trailing Twelve Month EPS: $3.65
Trailing Twelve Month P/E Ratio: 12.95
Sector: Oilfield Services
Products: Contract Drilling Services
Source: Oppenheimer, YahooFinance
Current Price: $20.07
Trailing Twelve Month EPS: $1.73
Trailing Twelve Month P/E Ratio: 11.40
Sector: Electronics
Products: Electronics Design, Production, Product Management and Aftermarket Services
Source: Oppenheimer, YahooFinance
Current Price: $43.85
Trailing Twelve Month EPS: $4.66
Trailing Twelve Month P/E Ratio: 9.29
Sector: Semiconductors
Products: Chip and Wafer Manufacturing
Source: Oppenheimer, YahooFinance
Current Price: $29.26
Trailing Twelve Month EPS: $2.43
Trailing Twelve Month P/E Ratio: 11.95
Sector: Retail
Products: Mid-market and Luxury Department Stores
Source: Oppenheimer, YahooFinance
Current Price: $32.18
Trailing Twelve Month EPS: $2.65
Trailing Twelve Month P/E Ratio: 11.98
Sector: Retail
Products: Mid-market and Luxury Department Stores
Source: Oppenheimer, YahooFinance
Current Price: $33.31
Trailing Twelve Month EPS: $2.37
Trailing Twelve Month P/E Ratio: 13.93
Sector: Energy
Products: Electricity and Gas Utility
Source: Oppenheimer, YahooFinance
Current Price: $41.82
Trailing Twelve Month EPS: $2.43
Trailing Twelve Month P/E Ratio: 16.91
Sector: Media
Products: Television Networks including: Home and Garden Television, Food Network, Travel Channel, DIY Network
Source: Oppenheimer, YahooFinance
Current Price: $13.54
Trailing Twelve Month EPS: $0.10
Trailing Twelve Month P/E Ratio: 137.19
Sector: Financial
Products: Loans and Lending through Sallie Mae
Source: Oppenheimer, YahooFinance
Current Price: $49.30
Trailing Twelve Month EPS: $4.07
Trailing Twelve Month P/E Ratio: 11.89
Sector: Machinery
Products: Manufacturer of Tools, Equipment, Diagnostics, and Repair Information and Systems
Source: Oppenheimer, YahooFinance
Current Price: $18.54
Trailing Twelve Month EPS: $0.42
Trailing Twelve Month P/E Ratio: 43.63
Sector: Conglomerate
Products: Aircraft, defence, and Industrial Manufacturing
Source: Oppenheimer, YahooFinance
Current Price: $24.70
Trailing Twelve Month EPS: $2.06
Trailing Twelve Month P/E Ratio: 11.62
Sector: Financial
Products: Lending, Consumer Credit, Retail Banking
Source: Oppenheimer, YahooFinance
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