Seeking Alpha
Recommended for you:
Profile| Send Message|
( followers)  

Following is a list of eight large cap companies for which sell-side consensus EPS expectations for the current quarter have decreased by more than 15% in the last month with at least two sell-side analysts reducing their estimates.

Tkr

Company Name

Consensus EPS Current Qtr 1m %ch (%)

No. of analyst decreasing their estimates

CP

CDN PAC RAIL

-74.94

18

BBY

BEST BUY INC

-24.6

16

VLO

VALERO ENERGY CP

-15.54

4

ACE

ACE LTD

-18.78

5

CCL

CARNIVAL CP

-40.65

14

MS

MORGAN STANLEY

-50.46

20

GS

GOLDMAN SACHS

-80.05

17

BRK.A

BERKSHIRE HATHAW

-24.49

2

Here are some of the specifics about these companies, including a brief description of their business, growth rates (top line and bottom line) and valuation:

CPRL is a holding company whose direct and indirect subsidiaries operate railways in North America. The company owns approximately 10,700 miles of track. An additional 4,700 miles of track are owned jointly, leased or operated under trackage rights. Its EPS forecast for the current year is 3.98 and next year is 5.15. According to the consensus estimates, its top line is expected to grow 13.09% current year and 8.51% next year. It is trading at a forward P/E of 12.14. Out of 19 analysts covering the company, six are positive and have buy recommendations, one has a sell recommendation and 12 have hold ratings.

Best Buy Co., Inc. is a multinational retailer of consumer electronics, home office products, entertainment software, appliances and related services. It operates in two segments: Domestic and International. The Domestic segment is consisted of the operations in all states, districts and territories of the United States, operating under various brand names, including Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, Napster, Pacific Sales and Speakeasy. Its EPS forecast for the current year is 3.46 and next year is 3.67. According to the consensus estimates, its top line is expected to grow 3.25% current year and 2.45% next year. It is trading at a forward P/E of 8.27. Out of 24 analysts covering the company, nine are positive and have buy recommendations, one has a sell recommendation and 14 have hold ratings.

Valero owns 15 refineries located in the United States, Canada and Aruba. The company’s refineries can produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products, as well as a slate of products, including conventional blendstock for oxygenate blending (CBOB) and reformulated gasoline blendstock for oxygenate blending (RBOB). Its EPS forecast for the current year is 2.93 and next year is 3.54. According to the consensus estimates, its top line is expected to grow 20.02% current year and 3.7% next year. It is trading at a forward P/E of 7.68. Out of 19 analysts covering the company, 10 are positive and have buy recommendations, one has a sell recommendation and eight have hold ratings.

ACE is a holding company of the ACE Group of Companies. ACE is a global insurance and reinsurance organization, serving the needs of commercial and individual customers in more than 170 countries. The company serves the property and casualty (P&C) insurance and reinsurance needs of businesses of all sizes in a range of industries. Its EPS forecast for the current year is 6.22 and next year is 7.29. According to the consensus estimates, its top line is expected to grow 1.69% current year and 3.47% next year. It is trading at a forward P/E of 9.13. Out of 20 analysts covering the company, 17 are positive and have buy recommendations and three have hold ratings.

Carnival Corporation is a cruise and vacation company. The company has a portfolio of cruise brands and is a provider of cruises to vacation destinations. The company has two cruise segments: North America, and Europe, Australia & Asia. Its EPS forecast for the current year is 2.66 and next year is 3.21. According to the consensus estimates, its top line is expected to grow 8.42% current year and 7.54% next year. It is trading at a forward P/E of 11.98. Out of 22 analysts covering the company, 18 are positive and have buy recommendations, one has a sell recommendation and three have hold ratings.

Morgan Stanley is a global financial services firm that, through its subsidiaries and affiliates, provides its products and services to a group of clients and customers, including corporations, governments, financial institutions and individuals. The company is a financial holding company. The company is a global financial services firm. The company operates in three segments: Institutional Securities, Global Wealth Management Group and Asset Management. Its EPS forecast for the current year is 2.4 and next year is 3.12. According to the consensus estimates, its top line is expected to grow 6.72% current year and 8.4% next year. It is trading at a forward P/E of 8.6. Out of 26 analysts covering the company, 14 are positive and have buy recommendations, one has a sell recommendation and 11 have hold ratings.

Goldman Sachs is a bank holding and a global investment banking, securities and investment management company. The company provides a range of financial services to customers, including corporations, financial institutions, governments and high-net-worth individuals. Its EPS forecast for the current year is 13.81 and next year is 18.89. According to the consensus estimates, its top line is expected to grow 4.89% current year and 6.72% next year. It is trading at a forward P/E of 8.49. Out of 25 analysts covering the company, 18 are positive and have buy recommendations and seven have hold ratings.

Berkshire Hathaway is a holding company owning subsidiaries engaged in a number of diverse business activities. Berkshire’s Insurance businesses are conducted on both a primary basis and a reinsurance basis. The Company also owns and operates number of other businesses engaged in a variety of activities. Its EPS forecast for the current year is 6751.5 and next year is 7702.5. According to the consensus estimates, its top line is expected to grow 4.53% current year and 3.19% next year. It is trading at a forward P/E of 15.91. All three analysts covering the company have hold ratings.

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

Source: 8 Large Caps With Downward Trend Consensus EPS Expectations