Here we present a list of six companies that have, on average, beaten analysts’ earnings estimates over the past four quarters. These companies have also been underperforming recently, losing more than 10% over the last quarter.
If you're a contrarian, this excessive pessimism might raise a flag. (To access a complete analysis of each stock's earnings history, click here.)
Earnings data sourced from AOL Money, all other data sourced from Finviz.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.
List sorted by average earnings surprise over the last year.
1. AOL, Inc. (AOL): Internet Information Providers Industry. Market cap of $2.07B. The stock has lost 24.63% over the last quarter, but has outperformed analyst earnings estimates by an average of 41.67% over the last year.
The stock is a short squeeze candidate, with a short float at 8.16% (equivalent to 6.92 days of average volume). The stock is currently stuck in a downtrend, trading 7.29% below its SMA20, 14.4% below its SMA50, and 16.14% below its SMA200.
2. Ford Motor Co. (F): Auto Manufacturer. Market cap of $54.05B. The stock has lost 13.71% over the last quarter, but has outperformed analyst earnings estimates by an average of 34.09% over the last year.
Note that this is a risky stock that is significantly more volatile than the overall market (beta = 2.36). It may be undervalued at current levels, with a PEG ratio at 0.7, and P/FCF ratio at 7.32. The stock has also performed poorly over the last month, losing 11.3%.
3. DreamWorks Animation SKG Inc. (DWA): Movie Production, Theaters Industry. Market cap of $2.21B. The stock has lost 14.85% over the last quarter, but has outperformed analyst earnings estimates by an average of 26.64% over the last year.
The stock is a short squeeze candidate, with a short float at 6.72% (equivalent to 6.38 days of average volume).
4. Jones Apparel Group, Inc. (JNY): Apparel Stores Industry. Market cap of $1.13B. The stock has lost 14.82% over the last quarter, but has outperformed analyst earnings estimates by an average of 23.77% over the last year.
5. American Superconductor Corporation (AMSC): Diversified Electronics Industry. Market cap of $1.31B. The stock has lost 21.12% over the last quarter, but has outperformed analyst earnings estimates by an average of 23.39% over the last year.
6. Par Pharmaceutical Companies Inc. (PRX): Generic Industry. Market cap of $1.10B. The stock has lost 19.05% over the last quarter, but has outperformed analyst earnings estimates by an average of 21.17% over the last year.
The stock has performed poorly over the last month, losing 15.49%.
