Analysts See 10 Companies Beating Expectations This Earnings Season

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Netflix

This Wall Street darling and FANG constituent could offer solid upside. Netflix Inc. (NASDAQ: NFLX) is the world’s leading internet television network, with more than 70 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.

Netflix is available on virtually any device with an internet connection, including personal computers, tablets, smartphones, smart TVs and game consoles, and it automatically provides the best possible streaming quality based on available bandwidth. Many titles, including Netflix original series and films, are available in high-definition with Dolby Digital Plus 5.1 surround sound and some in Ultra HD 4K. Advanced recommendation technologies with up to five user profiles help members discover entertainment they’ll love.

Merrill Lynch feels that this entertainment giant may beat earnings expectations, and the firm has set its price target at $154, while the consensus target is $151.60. The shares traded Thursday at $143.90.

Priceline

This internet travel leader took off late last summer and hasn’t really looked back. Priceline Group Inc. (NASDAQ: PCLN) is an online travel business offering price disclosed and opaque airline tickets, hotel rooms, rental cars, vacation packages and cruises. The company generates over 85% of gross profit from its international brands. Priceline operates Priceline.com, Booking.com, Kayak.com, Agoda.com, Rentalcars.com and OpenTable.

China is a key growth market for the company over the next 10 years, and Priceline has a multipart strategy to capture growing travel demand. The Merrill Lynch analysts see stock as attractive at 20 times 2018 earnings per share versus 15% two-year earnings growth. They also think the company will exceed Wall Street estimates for the first quarter.

The $1,920 Merrill Lynch price target compares with the consensus target of $1894.14. The shares traded recently at $1,754.35.

Rockwell Collins

Deutsche Bank is very positive going into earnings and cites the closure of the B/E Aerospace deal as a catalyst. Rockwell Collins Inc. (NYSE: COL) is a leader in providing design, production, integration and support of communications and aviation electronics for military and commercial customers worldwide. The company’s products include avionics suites for business and commercial aircraft, radios, GPS navigation and IFE systems.

Rockwell Collins agreed last fall to pay $6.4 billion to buy B/E Aerospace in a deal that will unite two of the biggest suppliers to airlines and plane makers. The arbitrage accounts that were long B/E and short Rockwell should be clearing those positions with the deal expected to close soon.

Shareholders receive a 1.34% dividend. Deutsche Bank has a $115 price target, while the consensus is set at $104.35. The stock traded Thursday at $97.90.

These are just 10 top companies that some on Wall Street feel could beat the current earnings expectations. This also provides a nice smorgasbord of different companies, some more aggressive than others. One thing is for sure, better to go with the companies that analysts feel can beat than take flyers in a pricey market like we have now.