Chicago Bridge & Iron
) is set to report third quarter 2013 results on Oct 31. Last
quarter it posted results in line with the estimates. Let's see
how things are shaping up for this announcement.
Growth Factors This Past Quarter
ChicagoBridgeis benefiting from the rising demand worldwide
for energy infrastructure, especially in the LNG, gas processing
and oil sands markets. Projects across the world have been a
growth factor this year.
Chicago Bridge & Iron is very positive about increase in
orders in the LNG division, especially for LNG/low temperature
storage systems (petrochemicals), an area where CB&I plans to
aggressively capture market share. However, unfavorable currency
translation remains a drag.
Our proven model does not conclusively show that Chicago
Bridge is likely to beat earnings this quarter. That is because a
stock needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Negative Zacks ESP:
That is because the Most Accurate estimate stands at $1.11 while
the Zacks Consensus Estimate is higher at $1.12. That is a
difference of -0.89%.
Zacks #3 Rank (Hold).
ChicagoBridge's Zacks Rank #3 (Hold) lowers the predictive power
of ESP because the Zacks Rank #3 when combined with a negative
ESP makes surprise prediction difficult. We caution against
stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Universal Forest Products Inc
), has Earnings ESP of 17.65% and Zacks Rank #1 (Buy).
Boise Cascade Co.
), has Earnings ESP of 5.56%and Zacks Rank #2 (Buy).
), has Earnings ESP of 2.13% and Zacks Rank #2 (Buy).
BOISE CASCADE (BCC): Free Stock Analysis
CHICAGO BRIDGE (CBI): Free Stock Analysis
RAYONIER INC (RYN): Free Stock Analysis
SANDERSON FARMS (SAFM): Free Stock Analysis
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