During earnings season, investors wait with bated breath to see
which companies will "meet", "beat", or "miss" the consensus
estimate. It is a high stakes game that can whip a stock's share
price around if expectations aren't met.
Wouldn't it be great if you could just invest in companies that
ALWAYS beat the earnings estimate?
It's not just wishful thinking. There actually are some companies
that manage to achieve such a feat, at least over the last 5 years,
even though market conditions haven't been easy during that time.
Over the last 5 years, companies have had to endure the worst
economy since the Great Depression while managing earnings
expectations. When the global economy was falling off a cliff at
the end of 2008, it took a lot of management skill to successfully
navigate those earnings seasons and come out with a beat quarter
These three companies managed to do just that.
Until last quarter, I could have added a fourth company, Apple. But
it missed for the first time in over five years so its streak
However, missing only one time in the last 5 years is also
impressive given the depth of the financial crisis.
Here are a few companies that have managed to do that:
Oil Services International (
Yum Brands (
In addition to beating the estimate, Herbalife, Kadant and Wyndham
are all seeing double digit earnings growth in 2011 and are
expected to see further growth in 2012.
As we head into another earnings season, will these companies
successfully keep their streaks intact for another quarter?
3 Earnings All-Stars
1. Herbalife Limited
Herbalife sells nutrition products such as protein shakes and
snacks, fitness drinks, vitamins and other nutritional supplements
through its army of 2.5 million independent distributors in 79
It is currently a Zacks #3 Rank (Hold) with a forward P/E of just
2011 Expected Earnings Growth: 33.2%
2012 Expected Earnings Growth :9.5%
Herbalife is next scheduled to report earnings on Feb 21.
2. Kadant Inc.
Kadant makes fiber processing products. It supplies systems to the
global pulp and paper industries through fluid handling which
transfer fluids, steam or air between rotating cylinders and
water-management equipment designed to clean fabrics.
Kadant is cheap, with a forward P/E of just 9.5. It is a Zacks #2
Rank (Buy) stock.
2011 Expected Earnings Growth: 50%
2012 Expected Earnings Growth: 13.3%
Kadant is scheduled to report earnings on Feb 22.
3. Wyndham Worldwide Corporation
Wyndham Worldwide is a hospitality company that operates 55 brands
worldwide, including well-known hotel brands such as Wyndham Hotels
and Resorts, Ramada, Days Inn, Super 8, and English Country
This Zacks #3 Rank (Hold) has attractive valuations, with a forward
P/E of just 13.6, well under its peers which average a P/E of 20.
2011 Expected Earnings Growth: 22.8%
2012 Expected Earnings Growth: 16.4%
Wyndham is scheduled to report its next earnings report on Feb 8.
While Apple proves that a "miss" can happen at any time, even to
the best of them, I like the odds of a beat with any of these
Tracey Ryniec is the Value Stock Strategist for
. She is also the Editor of the Turnaround Trader and Insider
Trader services. You can follow her on twitter at
HERBALIFE LTD (
): Free Stock Analysis Report
KADANT INC (
): Free Stock Analysis Report
WYNDHAM WORLDWD (WYN): Free Stock Analysis
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