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Stocks are earning season as we've mentioned.
Many times days beginning tomorrow and a lot of surprises are undoubtedly -- who could -- and who could miss we have an analyst.
Who has an 80% success rate so far this year for predicting earnings surprise which.
-- Robin is a senior research analyst at Thomson Reuters.
For yet another appearance in.
That incident gotten so many right let's start with the two names that you feel will outperform their expectations let's start with your number one pick what is it.
GAAP it's gotta be to adapt its its contestants are consuming discretion in.
The consumer is doing great.
It's 75% of the economy.
I -- going into the gap stores they're going to create product out there -- -- their stores and look a lot better right and foot traffic is high in indie stores they're going to the old navy stores -- true of the mean sometimes it's hard to get into some of those stories.
So that's fantastic and the last 22 months they've had fantastic -- source -- growth.
Last quarter last month with 6% seamstress -- let's -- That's really good number.
Compare that to the 2007 to 2009 punitive 22 consecutive months of -- same store sales -- if candidate John known him.
That's been -- all sorts like me by the way I just bought some online over the -- -- -- next what is surprising.
Because they weren't selling as many of their products in August I mean surprising how low fuel -- their products being sold what company is.
Boeing -- and that's they went from selling like a hundred jets in in July 2211.
In August -- so how could they be that -- pick for you so it's -- -- -- positive predicted surprise because once it finally came up with the first dreamliner.
With new modifications required -- -- cannot so it's finally working the dreamliner finally seems to be -- if they can continue that it seems like you've got that process down and all labor issues -- -- thing of the past I think the past intact and Ebert has been less adamant -- -- need to know that have put up a -- done a neighbor calls the cost the company -- So did the little more -- -- kind of going into these talks to that's great for Boeing secondly of course the US government this -- and doing the defense spending.
But you've got foreign countries buying their fighter jets from Saudi review period get to Brazil to have contracts have that kind of makes up for it.
The lead off 8000 employees of the last two years today anticipating the -- -- -- US defense spending to -- getting ready for that that's that's a good thing to see it but Boeing.
And finally as fuel costs rise.
Fuel efficiency is a big deal that's what do you -- -- them and they've got a seven year backlog -- they've got revenue streams that are coming.
Great so popular aircraft now from the aircraft maker to the carrier so folks are taking notes here borrowing and -- -- resets will outperform.
Now the two that you feel will underperform earnings expectations we go to an air carrier.
There aren't as new costs as they used to be.
-- pride themselves on that you're cost the used to charge five dog days logistic costs and -- that the five cents.
For each -- -- passenger kilometer not cost and seven cents.
So they're not as new as the used to be just three years ago that's a sad that's a worrying -- project you.
Hard to uniting effect -- them.
Florida's one of -- mean mean the ports and they got affected by Hurricane -- that's gonna bring down their profits.
And finally just a year ago there was a law cotton.
And it didn't cost the F fit FEE taxes for the air lines and lines pocket -- that.
This year that taxes and thinks -- airlines on gonna see that -- so we are gonna see -- new -- and and and we have two.
Blue investments on the negative side these are the best rated analysts that -- below the estimate OK we have to do.
This quickly because running out of time but the final -- loser of the final one is gonna disappoint on expectations.
Natural resources company called cliffs they actually had a 6% bump today their stocks are your going against the trend BR and and intact they also have analyst that a far below the consensus the Smart estimate is.
Is actually ten cents below that the consensus estimate.
That says that the best analysts -- the -- assessed once again let me just so that people are -- out there because you see the green arrows in the plus sides.
He Sri is saying that no this is going to disappoint so even though is up today -- BS department -- over the last two years statements.
Ending a lot on capex they have been expanding that capacity I in order it from China -- as we down.
That's gonna affect -- iron -- prices going forward and it's already brought been brought down almost 60% so far so and I you're starting to see China put in more orders and that was the news today that iron ore demand was slightly ticking up and they're increasing the supply also.
As well as Australia -- look at both sides of the equation and that's when.
This is really gonna suffer because Wendy Stockard these projects out two years ago I know prices were much higher now -- US today not gonna see the profits that they were expecting.
I'm I'm gonna see that and that's where the smartest -- has an.
Or will you have an 800% average batting average which is a pretty darn good for the year those that could change is gonna be very temperamental earning season that's -- we will see in fact if you turn out to be right treat Robin Betsy thank you very much.
-- Mickey Mantle.
There you -- thanks -- thanks.