12 Stocks That Could Be Winners in a Tough Earnings Season

Ben Levisohn Markets CRM CSCO MA UTX Cisco Systems Mastercard Salesforce.com United Technologies Financial Performance Earnings Corporate/Industrial News Content Types Factiva Filters C&E Industry News Filter CRM N/CNW N/ERN N/PFM UTX Barrons.com Barrons Blogs S&P 500 SPX CODES_REVIEWED Companies Markets US author Ben Levisohn author|Ben Levisohn id ben_levisohn name Ben Levisohn topicid 8022 rank 1 author Ben Levisohn id Ben Levisohn topicid barrons_display_subject barmkts barrons_display_subject|barmkts name Markets value BARMKTS source EXPANDER barrons_display_subject BARMKTS barrons_display_subject|BARMKTS codetype BARRONS_DISPLAY_SUBJECT canbedisplaysubject true value BARMKTS source MANUAL status modified name Markets code BARMKTS co ciscos co|ciscos fcode ciscos why occur significance passing onlinesignificance passing-mention subcat com extractedtext Cisco Systems fullextractedtext Cisco Systems name Cisco Systems displayname Cisco Systems exchange Nasdaq countrycode US country US symbol CSCO seoname cisco_systems exchangeisocode XNAS ticker CSCO chartingsymbol STOCK/US/XNAS/CSCO confidence 100 confidencerange high relevance 10 relevancerange low source FACTIVA co intbmc co|intbmc fcode intbmc why occur significance passing onlinesignificance passing-mention subcat com extractedtext Mastercard fullextractedtext Mastercard name Mastercard displayname Mastercard exchange NYSE countrycode US country US symbol MA seoname mastercard exchangeisocode XNYS ticker MA chartingsymbol STOCK/US/XNYS/MA confidence 100 confidencerange high relevance 15 relevancerange low source FACTIVA co salesf co|salesf fcode salesf why occur significance passing onlinesignificance passing-mention subcat com extractedtext Salesforce.com fullextractedtext Salesforce.com name Salesforce.com displayname Salesforce.com exchange NYSE countrycode US country US symbol CRM seoname salesforce_com exchangeisocode XNYS ticker CRM chartingsymbol STOCK/US/XNYS/CRM confidence 100 confidencerange high relevance 25 relevancerange low source FACTIVA co utc co|utc fcode utc why occur significance passing onlinesignificance passing-mention subcat com extractedtext United Technologies fullextractedtext United Technologies name United Technologies displayname United Technologies exchange NYSE countrycode US country US symbol UTX seoname united_technologies exchangeisocode XNYS ticker UTX chartingsymbol STOCK/US/XNYS/UTX confidence 100 confidencerange high relevance 20 relevancerange low source FACTIVA co CISCOS co|CISCOS symbol CSCO country US codetype co displayname Cisco Systems extractedtext Cisco Systems source MANUAL code csco name Cisco Systems significance prominent onlinesignificance prominent exchange U.S.: Nasdaq exchangeisocode XNAS chartingsymbol STOCK/US/XNAS/CSCO fcode CISCOS status modified co INTBMC co|INTBMC symbol MA country US codetype co displayname Mastercard extractedtext Mastercard source MANUAL code ma name Mastercard significance prominent onlinesignificance prominent exchange U.S.: NYSE exchangeisocode XNYS chartingsymbol STOCK/US/XNYS/MA fcode INTBMC status modified co UTC co|UTC symbol UTX country US codetype co displayname United Technologies extractedtext United Technologies source MANUAL code utx name United Technologies significance prominent onlinesignificance prominent exchange U.S.: NYSE exchangeisocode XNYS chartingsymbol STOCK/US/XNYS/UTX fcode UTC status modified co SALESF co|SALESF symbol CRM country US codetype co displayname Salesforce.com extractedtext salesforce.com source MANUAL code crm name salesforce.com significance prominent onlinesignificance prominent exchange U.S.: NYSE exchangeisocode XNYS chartingsymbol STOCK/US/XNYS/CRM fcode SALESF status modified company CSCO company|CSCO name Cisco Systems significance PROMINENT company MA company|MA name Mastercard significance PROMINENT company UTX company|UTX name United Technologies significance PROMINENT company CRM company|CRM name Salesforce.com significance PROMINENT djn csco djn|csco fcode CSCO why occur significance passing onlinesignificance passing-mention name CSCO source FACTIVA djn ma djn|ma fcode MA why occur significance passing onlinesignificance passing-mention name MA source FACTIVA djn crm djn|crm fcode CRM why occur significance passing onlinesignificance passing-mention name CRM source FACTIVA value CRM source EXPANDER djn utx djn|utx fcode UTX why occur significance passing onlinesignificance passing-mention name UTX source FACTIVA value UTX source EXPANDER djn n_ern djn|n_ern fcode N/ERN why about significance prominent onlinesignificance prominent name N/ERN source FACTIVA value N/ERN source EXPANDER djn n_pfm djn|n_pfm fcode N/PFM why lineage name N/PFM source FACTIVA value N/PFM source EXPANDER djn n_cnw djn|n_cnw fcode N/CNW why lineage name N/CNW source FACTIVA value N/CNW source EXPANDER djn CRM djn|CRM codetype djn why occur source FACTIVA code crm name CRM significance passing onlinesignificance passing-mention fcode CRM djn UTX djn|UTX codetype djn why occur source FACTIVA code utx name UTX significance passing onlinesignificance passing-mention fcode UTX djn N/ERN djn|N/ERN codetype djn why about source FACTIVA code n_ern name N/ERN significance prominent onlinesignificance prominent fcode N/ERN djn N/PFM djn|N/PFM codetype djn name N/PFM why lineage source FACTIVA code n_pfm fcode N/PFM djn N/CNW djn|N/CNW codetype djn name N/CNW why lineage source FACTIVA code n_cnw fcode N/CNW editorial-seo-id 12-stocks-winners-tough-earnings-season-51571083158 editorial-seo-id|12-stocks-winners-tough-earnings-season-51571083158 first_publish_headline Earnings Season Is Starting. Here Are 12 Stocks That Should Come Out Ahead. first_publish_headline|Earnings Season Is Starting. Here Are 12 Stocks That Should Come Out Ahead. flow barrons_com flow|barrons_com name Barrons.com value Barrons.com source EXPANDER flow barrons_blogs flow|barrons_blogs name Barrons Blogs value Barrons Blogs source EXPANDER flow Barrons.com flow|Barrons.com codetype FLOW name Barrons.com source MANUAL value Barrons.com code online status modified name Online title Product code Barrons.com flow Barrons Blogs flow|Barrons Blogs codetype FLOW source MANUAL title Product code Barrons_Blogs name Barrons Blogs value Barrons Blogs status modified headline Earnings Season Is Starting. Here Are 12 Stocks That Should Come Out Ahead. headline|Earnings Season Is Starting. Here Are 12 Stocks That Should Come Out Ahead. id MarketWatch id|MarketWatch guid a8fa92a4-ee8c-11e9-abe6-05401d6a9ec5 id Factiva id|Factiva id facebook id|facebook news_tab_url https://www.barrons.com/articles/12-stocks-winners-tough-earnings-season-51571083158 index s_p_500 index|s_p_500 name S&P 500 value S&P 500 source EXPANDER index spx index|spx name SPX value SPX source EXPANDER index S&P 500 index|S&P 500 name S&P 500 displayname S&P 500 Index symbol SPX chartingsymbol INDEX/US/S&P US/SPX exchange S&P US exchangeisocode S&P US country US onlinesignificance prominent significance prominent codetype index source MANUAL status modified extractedtext S&P 500 code spx media media-2 media|media-2 responsive layout wrap softcrop Horizontal imphotoid im-116778 location https://images.barrons.com/im-116778/?size=1.5 media media-3 media|media-3 responsive layout inline scope scope web scope mobileapps promotype None media media-1 media|media-1 softcrop Horizontal imphotoid im-116778 location https://images.barrons.com/im-116778/?size=1.5 ns c151 ns|c151 fcode c151 why about significance prominent onlinesignificance prominent name Earnings source FACTIVA codetype ns code c151 ns c15 ns|c15 fcode c15 why lineage name Financial Performance source FACTIVA codetype ns code c15 ns ccat ns|ccat fcode ccat why lineage name Corporate/Industrial News source FACTIVA codetype ns code ccat ns ncat ns|ncat fcode ncat why lineage name Content Types internalsymbol true source FACTIVA codetype ns code ncat ns nfact ns|nfact fcode nfact why lineage name Factiva Filters internalsymbol true source FACTIVA codetype ns code nfact ns nfcpin ns|nfcpin fcode nfcpin why lineage name C&E Industry News Filter internalsymbol true source FACTIVA codetype ns code nfcpin nwchain SB505085290631136544006045856106828349938281 nwchain|SB505085290631136544006045856106828349938281 pe 113047842 pe|113047842 lastname Emanuel codetype pe displayname Emanuel, Julian confidence 92 why about extractedtext Julian Emanuel source FACTIVA occurs true code 113047842 relevance 100 name Julian Emanuel significance prominent firstname Julian onlinesignificance prominent nameformat surname_first confidencerange high relevancerange high fcode 113047842 pe Emanuel pe|Emanuel codetype pe displayname Emanuel extractedtext Emanuel source FACTIVA code emanuel name Emanuel firstname Emanuel nameformat surname_first relay SYND relay|SYND codetype RELAY name Syndication source EXPANDER value SYND code synd status modified statistic CODES_REVIEWED statistic|CODES_REVIEWED name CODES_REVIEWED value CODES_REVIEWED source EXPANDER codetype STATISTIC code CODES_REVIEWED subject barus subject|barus name US value BARUS source EXPANDER subject barcomp subject|barcomp name Companies value BARCOMP source EXPANDER subject barmkts subject|barmkts name Markets value BARMKTS source EXPANDER subject BARCOMP subject|BARCOMP codetype SUBJECT title Companies code BARCOMP name Companies canbedisplaysubject true ruleid BARCOMP value BARCOMP status modified subject BARMKTS subject|BARMKTS codetype SUBJECT selectable true title Markets code BARMKTS name Markets canbedisplaysubject true ruleid BARMKTS value BARMKTS status modified subject BARUS subject|BARUS codetype SUBJECT title US code BARUS name US canbedisplaysubject true ruleid BARUS value BARUS status modified wordcount 318 wordcount|318 Photograph by Fauzan Saari Earnings Season Is Starting. Here Are 12 Stocks That Should Come Out Ahead. Earnings Season Is Starting. Here Are 12 Stocks That Should Come Out Ahead. Earnings Season Is Starting.12 Stocks That Could Be Winners.

Earnings season is starting, and it isn’t supposed to be a good one. But some stocks can still come out winners. We offer 12 stocks that could outperform.

12 Stocks That Could Be Winners in a Tough Earnings Season

Earnings season is starting, and it isn’t supposed to be a good one. But some stocks can still be winners.

https://www.barrons.com/articles/gloomy-earnings-outlook-third-quarter-51570831077 https://www.marketwatch.com/story/5-things-to-expect-this-earnings-season-2019-10-11? https://www.barrons.com/articles/dow-jones-industrial-average-gains-243-as-tentative-trade-deal-reached-51570838780 https://www.barrons.com/articles/12-stocks-losers-tough-earnings-season-51571083610 mailto:Ben.Levisohn@barrons.com Earnings Season Is Starting. Here Are 12 Stocks That Should Come Out Ahead. By Ben Levisohn Photograph by Fauzan Saari

Earnings season is starting, and it isn’t supposed to be a good one. But some stocks can still come out winners.

BTIG strategist Julian Emanuel notes that S&P 500 companies are expected to report a drop in their earnings-per-share of a about 4%. But these companies also tend to beat earnings forecasts, and if that continues at its historical rate, earnings growth would be down just around 1%, Emanuel explains. That isn’t too bad, all else being equal.

And remember, the stock market is a market of individual stocks. There will be winners and losers, and Emanuel expects the winners to outperform. “Despite the prospects for a small EPS recession this quarter, we look for good news to be rewarded as good news.”

To gauge which stocks might come out ahead this earnings season, Emanuel screened for what he calls “positivity performers”—companies that are expected to produce year-over-year third-quarter earnings growth, and have beaten both revenue and EPS forecasts over the last eight quarters. Twelve companies met those criteria, including Cisco Systems (CSCO), Mastercard (MA), United Technologies (UTX), and Salesforce.com (CRM).

Here is Emanuel’s full list of possible earnings winners:

Emanuel also has a list of 12 stocks that could be earnings-season losers.

Write to Ben Levisohn at Ben.Levisohn@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.