It's not a perfect world out there for investors.
Major market indexes may be near multiyear highs, but this week promises a ton of economic data that can rattle the rally. Unless you're convinced that the metrics of durable goods orders, personal income and spending, and the final adjustment of GDP for the second quarter will all be rosy, you're probably one of the growing number of investors who fear a market pullback is coming sooner rather than later.
I recently went over some of the companies that are expected to post lower quarterly profits when they report this week.
Thankfully, they're the exceptions and not the rule. Let's go over some publicly traded companies that are expected to stand tall this week by posting year-over-year improvement on the bottom line.
Latest-Quarter EPS (Estimated)
Year-Ago Quarter EPS
|CalAmp (Nasdaq: CAMP )||$0.12||$0.05||Add|
|Copart (Nasdaq: CPRT )||$0.33||$0.30||Add|
|FactSet Research Systems (NYSE: FDS )||$1.06||$0.88||Add|
|AZZ (NYSE: AZZ )||$0.52||$0.38||Add|
|McCormick (NYSE: MKC )||$0.76||$0.69||Add|
Source: Thomson Reuters.
Clearing the table
Let's start at the top with CalAmp.
Despite its CAMP-y ticker symbol, CalAmp has nothing to do with camping gear. Providing wireless communication solutions is CalAmp's game, and it's getting better and better at it. CalAmp has now delivered year-over-year growth for 10 consecutive quarters. Wall Street is holding out for a repeat performance tomorrow.
Copart is an auctioneer of used and wrecked cars and trucks. Copart's VB2 platform sells more than a million vehicles annually, and its extensive inventory offers more than 50,000 vehicles available for bidding at any given time. Wall Street's only holding out for 10% bottom-line improvement at Copart when it reports on Tuesday, but bulls will quickly point out that the company has managed to beat analyst profit targets in three of the past four quarters.
FactSet Research Systems provides research data for the financial services industry. Despite the inevitable ups and downs of Mr. Market, FactSet has managed to post steady growth over the years with steady dividend increases to show for it.
FactSet has been posting year-over-year earnings-per-share growth consistently for years, and there's no reason to think that the long streak will end this time around.
AZZ makes electrical products and offers galvanizing services. Wall Street's banking on a quarterly profit of $0.52 a share when it reports on Thursday, well ahead of the $0.38 a share it posted during the same quarter last year.
Finally, we have McCormick spicing things up.
Crack open your cupboard and it's a pretty strong possibility that McCormick will be there. The company's spices, seasoning mixes, condiments, and other flavoring products are sold in 110 different countries. Yes, spices and condiments may seem like cheap purchases, but it adds up for McCormick. The company rang up $3.7 billion in sales last year.
McCormick beat analysts' estimates for nine consecutive quarters before merely meeting expectations three months ago. Investors will want to see if it can resume its market-thumping ways on Thursday.
Cross those fingers, but know the fundamentals
Investors in these five stocks have a right to be excited. They are all improving their financial situations. They are worthy of the gains that the market rally has bestowed upon them over the past year.
I wouldn't be uncomfortable owning any of these companies. They're doing the right thing, regardless of Mr. Market's mood swings.
The expectations may be high, but these five stocks wouldn't have it any other way.
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