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Parents right I -- amazing the power of the parents' house when it comes to pointing out certain flaws are certain strengths at a certain stock.
Well guess what pop up three stocks the Barron's says some might actually outperform the markets in the months to -- let's bring in Jack how he's the senior editor.
And over the weekend you guys have pinpointed three of these names we wanted to share those with our viewer investors but first Jack.
Giving us the sense of where we are as far as earnings are concerned we have I guess about.
Two thirds of the S&P 500 having reported 73%.
Of them have beaten revenues but.
I believe it was a couple of our traders were saying yeah out but what does that mean that those comparisons were so easy.
Well what I'm worried about is looking forward in the third and fourth quarter so we've got.
3% earnings growth this quarter maybe and that's if you count the one time gains by banks if if you erase those.
We don't really have any.
But looking for over the next two quarters -- -- looking for 20%.
Earnings growth those estimates haven't come down yet now.
Believing in miracles is one thing betting on miracles is quite another.
I think the next two quarters the story could be falling earnings estimates so I wanted to go on the hunt for companies that are recently been beating their estimates.
On on both earnings and sales they have the kind of operational momentum that might protect them from a couple of quarters of generally falling estimates.
Okay thank you for doing the homework for us okay so now let's get to the answers were cheating -- this sport because parents is helping us on this -- -- but.
Let's get your first name and what I love about this is it is not a name.
That tends to be spoken about in the financial media very often and that's -- first explain what they do to our viewers and that's why -- This is the one -- -- the drug company -- the spin off from Abbott labs and it's supposed to be the boring part of the business the dull lot.
You know the branded drugs with some patent expirations coming up.
We love boring because boring tends to be cheap foreign tends to produce great cash flows so this is a company that's beating estimates right now -- finding new work.
Uses for the drugs that they have an -- sixteen drugs.
In the pipeline in late stage development that could add to earnings over the next couple of years.
On the stock is cheap -- great dividend yield.
OK so -- everybody -- -- -- but we're also going to put it on FaceBook dot com slap shot after the bell but let's get your second one.
That's a name that is very familiar to many of our viewers and that is Raytheon Jack I thought defense names were struggling because of the sequester and all the other issues a budget.
Cuts while they are and their share prices have been marked down -- -- but the thing with the Raytheon.
If it has some of the biggest international exposure of any of the big -- defense contractors.
It sells these weapons system that can be used on -- -- of a number of platforms so it you know more than a quarter of sales come from overseas and we've seen orders they're really ramp up.
Offsetting the declines here in the US so cheap stock and better results than Wall Street was generally expected.
And the last one Group 1 Automotive now everybody's been talking about the -- -- a lot of car purchases.
People have been holding her cards for an average of eleven years it's time to refresh the cycle correct.
-- -- car sales have really been ramping up here in the US and that's helping a lot of different companies.
I think -- this company is they make two thirds of their their profits from that from things like parts and service -- This company can do well in any number of different environment.
He really covers just about all of its operating expenses where that service business which means.
That this boost we're getting now from rising car sales it is really going straight to the bottom line so it's -- -- that still fairly priced.
But the Alec cares for much faster earnings growth and you -- for the typical stock out there.
Jack as we finish up it was two years ago today at that S&P ratings agency has said you know what.
The US doesn't deserve triple A credit rating what's fascinating to me is that.
The first trading opportunity that people had after that weekend.
-- -- -- -- Anybody filing into treasuries money piling into the US dollar of the safe haven play from the double A plus the -- -- Blake are frustrated comfort country.
What -- you folks -- thinking back then two years.
So where were they in the market doesn't seem to care what -- that's -- -- -- -- -- -- -- -- I think with treasury yields -- we find that they really react according to the economy.
They did the -- -- rock bottom when we had slow overall known wanted anything to do with stocks and people piling on they were looking for safe havens.
We've seen those yields rise now all the talk is about the -- but let's also keep in mind.
We've had some better you know so there's some better signs economically and investors have gone back into stocks and so.
They're just not as popular now what happens next depends on whether this turns into it continued economic growth -- whether we'd be in the begin to flirt with a recession in coming quarters so.
Let's hope for more growth in which case those treasury would remain -- popular.
Hey we appreciate your three stocks today Jack -- -- senior editor of -- once again we will put them on FaceBook dot com slash after the bell in case you missed them at a.
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