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9 Stocks Reporting Earnings Next Week with Low Valuations

By: Kapitall
Posted: 1/21/2014 12:03:00 PM
Referenced Stocks: BBY;C;ALK;BAX;CMCO;COH;DLX;EAT;IBM;SWFT;LMT

By James Dennin for Kapitall

Earnings season is back. We decided to find stocks reporting earnings next week with low valuations and high ROE.

The first week of major Q4 earnings reports is starting to reveal what investors may focus on in the year ahead: disappointing earnings. One of the S&P's big winners from 2013, Best Buy (BBY), fell a precipitous 29% after reporting a drop in same-store sales. Citigroup (C) lost 3.1% as well after its earnings failed to meet expectations.

Since we haven't seen a market correction for some time, investors are really scrutinizing each company's earnings, perhaps more so than they did in 2013.

And considering that unemployment figures have thus far been favorable – with growth outlooks improving – the effect on each stock based on their earnings report seems telling. Investors are focusing on fundamentals, and are wary of an expensive stock market.

Investing ideas

However, if bad earnings seem to be hitting some stocks disproportionately hard, then it's possible that a positive earnings surprise might bolster certain stocks even more than normal. This hasn't yet been the case with some of the big reports so far, but that might be because Wall Street is so focused on the financial sector. We decided to look for some stocks that are reporting earnings next week, in case they have a surprise in store.

We decided to keep our screen fairly vague, and focused on companies with a low forward price to equity (Forward P/E) ratio and a very high return on equity (ROE) for last year – of at least 30%.

Below we've listed the nine stocks reporting earnings next week that remained.

Click on the image below to view an interactive chart with analyst ratings over time.

Chart

Do you think any of these earnings reports will contain some surprises next week? Use the list below to begin your analysis.

1. Alaska Air Group, Inc. (ALK, Earnings, Analysts, Financials): Operates as an airline company serving destinations in the western United States, Canada, and Mexico. Market cap at $5.49B, most recent closing price at $78.73.

Forward P/E: 12.40

ROE: 30.5%

Earnings date: January 23

2. Baxter International Inc. (BAX, Earnings, Analysts, Financials): Develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. Market cap at $37.92B, most recent closing price at $69.83.

Forward P/E: 13.95

ROE: 30.1%

Earnings date: January 23

3. Columbus McKinnon Corporation (CMCO, Earnings, Analysts, Financials): Designs, manufactures, and markets material handling products and services for commercial and industrial end-user markets in the United States, Europe, and Canada. Market cap at $515.55M, most recent closing price at $26.23.

Forward P/E: 6.88

ROE: 32.4%

Earnings date: January 23

4. Coach, Inc. (COH, Earnings, Analysts, Financials): Engages in the design and marketing of accessories and gifts for men and women in the United States and internationally. Market cap at $15.23B, most recent closing price at $54.13.

Forward P/E: 14.12

ROE: 45.2%

Earnings date: January 20

5. Deluxe Corp. (DLX, Earnings, Analysts, Financials): Provides various personalized printed products, promotional products, and merchandising materials to small businesses and financial institutions in the United States, Canada, and Europe. Market cap at $2.64B, most recent closing price at $52.25.

Forward P/E: 13.19

ROE: 38.5%

Earnings date: January 23

6. Brinker International Inc. (EAT, Earnings, Analysts, Financials): Develops, operates, and franchises various restaurant brands primarily in the United States. Market cap at $3.1B, most recent closing price at $46.46.

Forward P/E: 14.99

ROE: 85.9%

Earnings date: January 22

7. International Business Machines Corp. (IBM, Earnings, Analysts, Financials): Provides information technology (IT) products and services worldwide. Market cap at $204.81B, most recent closing price at $187.74.

Forward P/E: 12.97

ROE: 101.4

Earnings date: January 21

8. Swift Transportation Company (SWFT, Earnings, Analysts, Financials): Provides transportation services. Market cap at $2.99B, most recent closing price at $21.31.

Forward P/E: 14.75

ROE: 66.50%

Earnings date: January 20

9. Lockheed Martin Corporation (LMT, Earnings, Analysts, Financials): Engages in advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology. Market cap at $49.32B, most recent closing price at $153.50.

Forward P/E: 14.98

ROE: 529.30%

Earnings date: January 23

(List compiled by James Dennin. Analyst ratings sourced from Zacks Investment Research, all other data sourced from Finviz.)

Read the original article at Kapitall.