Let the earnings season’s final countdown begin. Close to 90% of S&P 500 listed companies have already announced their third quarter financials, with the season winding down on a generally positive note. So what does this mean for the remaining few names getting ready to post results?
We wanted to find out. With this in mind, we used TipRanks.com to get the full scoop on 3 Buy-rated stocks reporting quarterly results today. The platform gave us access to extensive market data that includes factors like analyst consensus and price targets, stock analysis and corporate insider activity, just to name a few.
Here’s the lowdown.
Energizer Holdings, Inc. (ENR)
The company behind the famous Energizer Bunny is one of the largest battery manufacturers in the world. While shares have dipped year-to-date, Wall Street’s gaze has turned to ENR, with many anxiously waiting to see if a turnaround is on the horizon.
Ahead of its fiscal fourth quarter release, Deutsche Bank analyst Faiza Alwy tells investors what to pay close attention to. If ENR can post 6%-plus organic growth, which would fall in-line or exceed the consensus estimate, and beat on EBIT/EPS, the analyst would take it as a positive signal. Alwy will also be looking to see if the battery maker can “assertively guide batteries organic growth for the first-half”.
Even though the Energizer brand faces intense competition from Duracell and private labels, Alwy argues that unscanned channels, its presence within international markets as well as its recent acquisition of Spectrum Brands’ auto care business could fuel substantial gains.
“We see further upside to the extent the company can show some upside to auto care sales this quarter,” the four-star analyst explained. To this end, Alwy kept the Buy rating and $55 price target, implying 31% upside potential. (To watch Alwy’s track record, click here)
Like Alwy, the rest of the Street is on the same page. As ENR boasts 100% Street support, the consensus is unanimous: the stock is a ‘Strong Buy’. Additionally, its $56 average price target brings the upside potential to 33%. (See Energizer stock analysis on TipRanks)
Cisco Systems Inc. (CSCO)
At first glance, Cisco’s below-consensus guidance is troubling. However, Oppenheimer’s Ittai Kidron tells investors that when you take a step back and focus on the bigger picture, it isn’t as gloomy as you might think.
CSCO has felt the effects of trade tensions and macro concerns that have hampered the market. That being said, Kidron points out that the company is still on track to meet expectations. “Our checks suggest that tough conditions have persisted but have not worsened. We see signs of resiliency in WLAN, security and campus switching spending and believe Cisco has appropriately reset the bar to a level where it can deliver in-line results and offer in-line guidance,” he commented.
Kidron adds that the demand for campus and data center switching has improved significantly, lending itself to his conclusion that CSCO has a leg up on its competition in the segment. While noting that its legacy DC footprint is a cause for concern, the five-star analyst’s long-term view is positive given CSCO's growing software and recurring revenue mix.
As a result, Kidron’s bullish thesis remains very much intact. His $57 price target indicates that shares could surge 18% over the next twelve month period. (To watch Kidron’s track record, click here)
Wall Street’s approach is more varied when it comes to CSCO. 11 Buy ratings and 8 Holds assigned in the last three months make the consensus a ‘Moderate Buy’. Its $55 average price target puts the upside potential at 13%. (See Cisco stock analysis on TipRanks)
ProPetro Holding Corporation (PUMP)
ProPetro provides hydraulic fracturing and other oilfield services to upstream oil and gas companies. With shares down 38% year-to-date, investors are worried PUMP won’t be able to deliver with its third quarter performance.
PUMP has been under scrutiny following several negative disclosures including the report of an SEC probe, with shares feeling the heat as a result. It doesn’t help that slowing completions activity witnessed in September will likely weigh on profits.
Nonetheless, J.P. Morgan analyst Sean Meakim believes that much of the risk associated with PUMP has already been factored into the share price. “As such, we think ProPetro is set up to provide a better outlook than the sell-side expects, and if it can offer incremental reassurance regarding the SEC probe and positive commentary on customer demand in 1H20 the stock could catch a bid,” he noted. The company’s new DuraStim fleets could also stand to boost PUMP’s position.
Based on all the above factors, Meakim is still optimistic that PUMP can be a long-term winner. Along with his Buy rating, the analyst sees 82% upside potential in store. (To watch Meakim’s track record, click here)
Looking at the consensus breakdown, 9 Buys and 5 Holds received in the last three months give PUMP ‘Moderate Buy’ status. Its $15 average price target suggests there’s room for a 93% twelve-month climb. (See ProPetro stock analysis on TipRanks)