Wall Street has closed one of the busiest earnings seasons in its history. Very few S&P 500 stocks have dodged the impact of the coronavirus on their accounts. And analysts already have their verdict. Five companies among the ten that more comfortably They have beaten the forecasts of profit of the market they manage to reap more than 70% of advice of purchase.
The list of listed companies that have most surprised and then seduced Wall Street analysts is short if you consider that there are five hundred companies that make up the S&P 500. This strong screen that only exceed 1% of the listed index gives an idea of the punishment that, both on balance and in investor sentiment, has caused the coronavirus in recent months.
One of the listed that the filter passes is Aptiv, the old Delphi Automotive. Your earnings per share in this turbulent first quarter have been 79.8% higher than what the market had been discounting, according to FactSet data. And it is that, although in this company they have been wrong, in the industrial sector there have been few surprises as positive as yours.
Not a single one of the analysts who monitor the evolution of this manufacturer of automotive components, a sector that has also been in the focus of the outbreaks of trade tension between China and the US, recommend the sale of its shares. 79% advise buying them. And the consensus upside potential they give you is 5% from your current listing.
Broader is the revaluation ceiling that analysts grant to another on the list, the oil company ConocoPhillips. With 88% purchase advice, its potential reaches 14%, according to data collected by Refinitiv. Those who do not recommend buying, opt to maintain. Neither recommends undoing positions. Its earnings per share were 184.7% higher than consensus estimates.
Surprise at the oil companies
This deviation is the result of a pessimism that has now turned to admiration it is repeated in two other classmates from the previous one. Fear that falling oil prices and erosion of demand caused by economic closure and confinement measures led analysts to put themselves at the worst. And the data indicates that this scenario has not been met. And that foreseeably will not be fulfilled.
Despite the fragility of the sector, especially the small producers that use fracking methods, Chevron and Noble Energy They were others that managed to dodge the worst forecasts with more slack. Its earnings per share were 97.2% and 638.6% more bulky than expected by the consensus of experts and no less than 70.8% and 75% of analysts who follow their stock and business evolution they advise purchases in their shareholding.
In this sense, the data collected by FactSet indicate that the energy sector has, in fact, been the one that has most positively surprised with their accounts of the first quarter of the year. The difference between their combined earnings per share and estimates is 130.3%, which is more than doubling market expectations.
A special case in this regard is Exxon Mobil. The great American oil company that for long years was the most valuable listed company on Wall Street published a profit per share of $ 0.53, while the market barely expected a penny. However, doubts about its financial structure mean that the capital surprise of 3,668% in earnings translates into only 8.3% of purchase recommendations compared to 20.8% of sales advice.
Defense without sales advice
This list of companies applauded by the market after having dazzled Wall Street with its quarterly balance is completed Raytheon Technologies, the technology company specialized in aviation, aeronautics and defense solutions. With a potential upside of 21% from its current listing, has 73% purchase advice compared to 27% of invitations to hold positions.
As in the other four cases, not one of the analysts who watches his career opts to sell. Its adjusted earnings per share was 76.6% higher than what analysts had been calculating. Although the company has withdrawn its forecasts for the whole of 2020, it has shown its intention to update them when it releases its first semester figures. At the moment, it has applause from the global finance mecca.