The Zacks Analyst Blog Highlights: Lockheed Martin, The Travelers Companies, Sempra Energy, Centene and Sirius XM

For Immediate Release

Chicago, IL – April 17, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lockheed Martin Corp. LMT, The Travelers Companies Inc. TRV, Sempra Energy SRE, Centene Corp. CNC and Sirius XM Holdings Inc. SIRI.

Here are highlights from Thursday’s Analyst Blog:

5 Stocks Poised to Beat on Q1 Earnings Amid Coronavirus Woes

The first-quarter 2020 earnings season has kicked off this week. Corporate earnings are expected to suffer significantly on account of the coronavirus outbreak that spread like wildfire across the United States and the world in the second half of the first quarter.

Wall Street completed a fabulous 2019 wherein all three major stock indexes witnessed the best yearly performance in six years. The U.S. stock markets commenced 2020 from where it left off last year. However, the situation took a drastic turn once the coronavirus, which was first detected in China, started spreading across the world.

First Quarter at a Glance

Both U.S. corporate and investors are almost completely in the dark regarding global economic outlook and future business prospects. This can primarily be attributed to the government imposed full or partial lockdown across the world in a bid to curb the spread of the coronavirus.

As a result of the lockdowns, economic activities across the world have come to a standstill. The 11-year long historic bull run of Wall Street came to end on early March with all three major stock indexes entering the bear market territory. In fact, several corporate giants warned about stiff business decline and withdrew the rosy outlook for 2020 issued previously.

Several disappointing economic data revealed the tough conditions. Unemployment soared to 10 million in March. Retail sales in March plunged by 8.7%, marking its highest monthly decline. Industrial production slipped 5.4%, the largest decline since 1946 and manufacturing sector was down 6.3%. ISM Manufacturing index contracted and services index witnessed a sharp decline.

As of Apr 15, 35 S&P 500 members reported first-quarter 2020 earnings results. Total earnings of these companies are down 35% from the same period last year on 3.2% higher revenues. Of the total, 68.6% surpassed EPS estimates and an equivalent proportion outpaced revenue estimates. Overall, first-quarter  earnings for the S&P 500 Index were projected to be down 13.9% year over year on 1.2% higher revenues. (Read More: Shaky Start to Q1 Earnings Season)

5 Large-Cap Stocks Expected to Beat Q1 Earnings

Despite coronavirus-induced economic disaster and stock market turmoil, five large-cap (market capital >$20 billion) stocks are poised to beat first-quarter earnings estimates this month. All these stocks has a Zacks Rank #3 (Hold) and a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to soar after earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lockheed Martin Corp. is a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems.

Lockheed Martin has an Earnings ESP of +1.30%. It has an expected earnings growth rate of 9.9% for the current year. It has a trailing four-quarter positive earnings surprise of 15.9%, on average. The company is set to release earnings results on Apr 21, before the opening bell.

The Travelers Companies Inc. provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally. It operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance.

The Travelers Companies has an Earnings ESP of +3.58%. It has an expected earnings growth rate of 5.2% for the current year. The company is set to release earnings results on Apr 21, before the opening bell.

Sempra Energy operates as an energy-services holding company in the United States and internationally. Its San Diego Gas & Electric Company segment generates, transmits, and distributes electricity; and supplies natural gas.

Sempra Energy has an Earnings ESP of +15.49%. It has an expected earnings growth rate of 4.7% for the current year. The company's trailing four-quarter positive earnings surprise is 6.3%, on average. It is set to release earnings results on Apr 22, after the closing bell.

Centene Corp. operates as a multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. It is a well-diversified, multi-national healthcare company that primarily provides a set of services to the government sponsored healthcare programs.

Centene has an Earnings ESP of +13.12%. It has an expected earnings growth rate of 7.9% for the current year. It has a trailing four-quarter positive earnings surprise of 3.3%, on average. The company is set to release earnings results on Apr 28, before the opening bell.

Sirius XM Holdings Inc. creates and broadcasts a variety of content such as commercial-free music, premier sports and live events, news and comedy and exclusive talk and entertainment shows.

Sirius XM has an Earnings ESP of +10%. It has an expected earnings growth rate of 15% for the current year. The company is set to release earnings results on Apr 28, before the opening bell.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

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Sempra Energy (SRE) : Free Stock Analysis Report
 
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
 
Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Centene Corporation (CNC) : Free Stock Analysis Report
 
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