Goldman Sachs Top 5 Expected Earnings Surprise Winners

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Netflix Inc. (NASDAQ: NFLX) was the Goldman Sachs top media pick for an earnings beat this earnings season. The consensus EPS estimate is $1.14, up massively from the $0.49 reported a year ago. Goldman Sachs was very bullish recently, raising its rating on July 1 to Buy from Neutral. The real standout here was the firm’s $590 price target, which catapulted the new street-high analyst price target up by a massive $65 from the prior high.

Pioneer Natural Resources Co. (NYSE: PXD) is one of the high-priced stocks trading north of $220, and Goldman Sachs is expecting it to be the top earnings beat among the independent oil and gas operators. We would point out that this was not the first time that Goldman Sachs has mentioned Pioneer as an expected earnings beat based on options strategies — even back when the strike under question was closer to $200.

Endo International PLC (NASDAQ: ENDP) seems like an unusual call because it is biotech. The stock was started as Buy at Goldman Sachs last September, and let’s just be nice and say that the stock has surged well above the initial $52 price target offered up back then. The consensus estimate signals that earnings will fall to $0.88 per share from $1.42 a year ago. There is also on an expected 16% revenue drop to $643.7 million. Needless to say, Goldman Sachs is not expecting the drop to be as bad as the consensus targets.

These calls are not meant to be breaking news, but they are interesting views for positioning ahead of earnings reports. That is particularly the case if the market sell-off brings more “bargain buying” opportunities on pullbacks. Consensus estimates and targets are from Thomson Reuters.

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