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The Zacks Analyst Blog Highlights: CF Industries, Exxon Mobil, Tesla, Centene Corp. and Southwest Airlines

For Immediate Release

Chicago, IL – January 14, 2022 – 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: CF Industries CF, Exxon Mobil XOM, Tesla TSLA, Centene Corp. CNC and Southwest Airlines LUV.

Here are highlights from Thursday’s Analyst Blog:

5 S&P 500 Stocks Set to Report Triple-Digit Earnings Growth

The fourth-quarter earnings season is heating up, with total S&P 500 earnings expected to be up 19.9% from the same period last year on 11.9% higher revenues. This would follow a 41.4% rise in earnings on 17.3% higher revenues in the third quarter. Earnings were up 94.8% in the second quarter and 50.3% in the first quarter of 2021.

Given the robust projections, most S&P 500 stocks are likely to post triple-digit earnings growth. Some of these areCF Industries, Exxon Mobil, Tesla, Centene Corp. and Southwest Airlines. These stocks have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP.  

According to our methodology, the combination of a positive Earnings ESP and a favorable Zacks Rank increases the chance of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Then we looked for stocks having a triple-digit estimated earnings growth rate for the to-be-reported quarter.

Solid Earnings Trend

Of the 16 Zacks sectors, 11 are expected to earn more relative to the year-ago quarter. Energy, transportation & aerospace will likely see huge earnings growth from the year-ago-quarter as aerospace incurred losses while energy and transportation barely reported positive earnings.

The other eight sectors are expected to witness positive year-over-year earnings growth. Basic materials is expected to be the biggest contributor to S&P 500 earnings with 80.3% growth. This is likely to be followed by consumer discretionary (46.5%), construction (22.2%) and medical (16.7%).

Earnings strength is broad-based, with small caps projected to report solid growth. For the small-cap S&P 600 Index, Q4 total earnings are expected to be up 31.5% from the same period last year on 15% higher revenues. This would follow 352.2% earnings growth on 21.1% revenue growth in Q3.

The earnings growth projection reflects significant deceleration from the last two quarters due to rising cost pressures and supply chain disruptions.

Stocks With Triple-Digit Growth

CF Industries is one of the largest manufacturers and distributors of nitrogenous fertilizer and other nitrogen products globally. It has a market cap of $14.8 billion. Currently, the company has a Zacks Rank #1 and an Earnings ESP of +20.03%. CF Industries saw a solid earnings estimate revision of 39 cents over the past 30 days and has an estimated earnings growth rate of 662.5% for the yet-to-be reported quarter.

CF Industries has a VGM Score of A. It is scheduled to report earnings on Feb 16.

Exxon Mobil is engaged in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through the Upstream, Downstream, and Chemical segments and has a market cap of $302.1 billion. Exxon Mobil currently has a Zacks Rank #1 and an Earnings ESP of +3.73%. The stock saw a positive earnings estimate revision of 8 cents over the past 30 days for the fourth quarter, indicating whopping growth of more than 1000%.

Exxon Mobil is slated to release earnings on Feb 1. XOM has a VGM Score of A.

Tesla has evolved into a dynamic technology innovator and is now the market leader in battery-powered electric car sales in the United States, owning around 60% of the market share. The company has a market cap of 1.1 trillion. TSLA has a Zacks Rank #3 and an Earnings ESP of +16.96%. The company witnessed a positive earnings estimate revision of 18 cents for the to-be-reported quarter over the past and has an expected growth rate of 133.75%.

Tesla has a VGM Score of B and is expected to report on Jan 26.

Centene, with a market cap of $46.7 billion, is a well-diversified, multi-national healthcare company that primarily provides a set of services to government-sponsored healthcare programs. It is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services.

CNC has a Zacks Rank #3 and an Earnings ESP of +1.80%. The company saw positive earnings estimate revision of a couple of cents over the past month for the to-be-reported quarter and has an expected earnings growth rate of 113%.

Centene is slated to release earnings results on Feb 8. It has a Value Score of A.

Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States and 'ten near-international' markets. LUV has a Zacks Rank #3 and an Earnings ESP of +172.7%. The Zacks Consensus Estimate of the $27.1-BILLION market cap company has moved up from a loss of 10 cents to earnings of 6 cents per share over the past month for the to-be-reported quarter. Southwest Airlines has an estimated earnings growth rate of 104.6%.

Southwest Airlines is scheduled to report earnings on Jan 27.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

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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/performance for information about the performance numbers displayed in this press release.


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Exxon Mobil Corporation (XOM): Free Stock Analysis Report
 
Southwest Airlines Co. (LUV): Free Stock Analysis Report
 
CF Industries Holdings, Inc. (CF): Free Stock Analysis Report
 
Tesla, Inc. (TSLA): Free Stock Analysis Report
 
Centene Corporation (CNC): Free Stock Analysis Report
 
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