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Here we present 15 large cap companies that have been in the red for the recent quarter. However, these names also have a track record of consistently beating analyst earnings estimates (i.e. earnings "surprises").

Given the consistent earnings surprises from these companies, do you think this recent underperformance is justified? If you're a contrarian, this pessimism might raise a flag. (To access a complete historical analysis of the companies' earnings performance, click here.)



List sorted by average earnings surprise.

1. Ford Motor Co. (F):
Auto Manufacturer. Market cap of $56.21B. The stock has lost 11.91% over the last quarter. It 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). The stock has gained 9.51% over the last year.

2. Morgan Stanley (MS): Investment Brokerage Industry. Market cap of $42.12B. The stock has lost 1.02% over the last quarter. It has outperformed analyst earnings estimates by an average of 16.45% over the last year. The stock has lost 6.98% over the last year.

3. Banco Santander (SAN): Money Center Banks Industry. Market cap of $15.21B. The stock has lost 8.53% over the last quarter. It has outperformed analyst earnings estimates by an average of 16.26% over the last year. The stock has had a couple of great days, gaining 6.35% over the last week.

4. Intel Corporation (INTC): Semiconductor Industry. Market cap of $111.63B. The stock has lost 1.60% over the last quarter. It has outperformed analyst earnings estimates by an average of 16.21% over the last year. INTC might be undervalued at current levels, with a PEG ratio at 0.92, and P/FCF ratio at 13.98. The stock has lost 6.05% over the last year.

5. Xerox Corp. (XRX): Business Equipment Industry. Market cap of $14.89B. The stock has lost 8.20% over the last quarter. It has outperformed analyst earnings estimates by an average of 15.00% over the last year. The stock has gained 10.72% over the last year.

6. Carnival Corporation (CCL)
: General Entertainment Industry. Market cap of $30.30B. The stock has lost 16.19% over the last quarter. It has outperformed analyst earnings estimates by an average of 14.62% over the last year. It's been a rough couple of days for the stock, losing 6.58% over the last week.

7. Microsoft Corporation (MSFT): Application Software Industry. Market cap of $213.50B. The stock has lost 8.96% over the last quarter. It has outperformed analyst earnings estimates by an average of 13.42% over the last year. The stock has lost 12.23% over the last year.

8. Freeport-McMoRan Copper & Gold Inc. (FCX):
Copper Industry. Market cap of $51.19B. The stock has lost 8.43% over the last quarter. It has outperformed analyst earnings estimates by an average of 12.94% over the last year. The stock has gained 32.32% over the last year.

9. The Goldman Sachs Group, Inc. (GS): Diversified Investments Industry. Market cap of $81.44B. The stock has lost 7.67% over the last quarter. It has outperformed analyst earnings estimates by an average of 12.84% over the last year. The stock has lost 9.26% over the last year.

10. TE Connectivity Ltd. (TEL): Diversified Electronics Industry. Market cap of $15.27B. The stock has lost 2.39% over the last quarter. It has outperformed analyst earnings estimates by an average of 11.58% over the last year. The stock has gained 26.27% over the last year.

11. Newmont Mining Corp. (NEM): Gold Industry. Market cap of $26.27B. The stock has lost 11.08% over the last quarter. It has outperformed analyst earnings estimates by an average of 11.56% over the last year. NEM has a relatively low correlation to the market (beta = 0.36), which may be appealing to risk-averse investors. The stock has gained 6.77% over the last year.

12. Chemical & Mining Co. of Chile Inc. (SQM): Synthetics Industry. Market cap of $14.18B. The stock has lost 1.45% over the last quarter. It has outperformed analyst earnings estimates by an average of 11.17% over the last year. The stock has gained 46.97% over the last year.

13. VMware, Inc. (VMW): Technical & System Software Industry. Market cap of $32.98B. The stock has lost 13.38% over the last quarter. It has outperformed analyst earnings estimates by an average of 11.08% over the last year. The stock has gained 48.17% over the last year.

14. Wipro Ltd. (WIT): Information Technology Services Industry. Market cap of $34.67B. The stock has lost 7.22% over the last quarter. It has outperformed analyst earnings estimates by an average of 10.90% over the last year. The stock has gained 1.95% over the last year.

15. Nokia Corporation (NOK)
: Communication Equipment Industry. Market cap of $33.21B. The stock has lost 14.48% over the last quarter. It has outperformed analyst earnings estimates by an average of 10.83% over the last year. NOK offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 6.24%, current ratio at 1.55, and quick ratio at 1.4. The stock has lost 40.34% over the last year.

*Earnings surprises sourced from Daily Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 15 Underperforming Large Caps With a History of Beating Analyst Earnings Estimates