Zacks.com Featured Highlights: Constellation Brands, Celanese, Facebook, Preferred Bank And Worthington Industries

For Immediate Release

Chicago, IL – December 20, 2016 - Stocks in this week’s article include Constellation Brands, Inc. (NYSE:STZFree Report), Celanese Corporation (NYSE:CEFree Report), Facebook, Inc. (NASDAQ:FBFree Report), Preferred Bank (NASDAQ:PFBCFree Report) and Worthington Industries, Inc. (NYSE:WORFree Report).

Screen of the Week of Zacks Investment Research:

5 Stocks to Buy with Striking Earnings Growth

Regardless of whether a company is a fledgling or established one, consistent earnings growth interests all. And why not? If the company doesn’t make money, it won’t last over the long haul. Take a company’s revenue over a given period of time, subtract the cost of production and, there it is, you have earnings!

This metric is also considered to be the most significant variable in influencing the share price. Better-than-expected earnings performances normally lead to a rally in the share price. But, expectations of earnings also play a significant role in influencing the price of a stock.

Earnings Estimates & Share Prices

We have often seen a decline in the stock price despite earnings growth and a rally in the price following an earnings decline. This is largely a result of a company’s earnings failing to meet market expectations.

So, what does earnings estimates symbolize? Earnings estimates embody analysts’ opinion of factors such as sales growth, product demand, competitive industry environment, profit margins and cost control. Thus, earnings estimates are a valuable tool for investors. Analysts can also examine the cash flow based on these periodic earnings estimates to determine the fair value of a company.

Here, we have picked stocks that have displayed historical earnings growth and are also seeing a rise in quarterly and annual earnings estimates.

The Winning Strategy

In order to shortlist stocks that have striking earnings growth and positive estimate revisions, we have added the following parameters:

Zacks Rank less than or equal to 2 (Only Zacks' 'Buys' and 'Strong Buys' are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off.)

5-Year Historical EPS Growth (%) greater than X-Industry (stocks with a strong EPS growth history).

% Change EPS F(0)/F(-1) greater than or equal to 5 (companies that saw year-over-year earnings growth of 5% or more in the last reported fiscal).

% Change Q1 Estimates over the last 4 weeks greater than zero (stocks that have seen their current quarter earnings estimates revised higher in the last 4 weeks).

% Change F1 Estimates over the last 1 week greater than zero (stocks that have seen their annual earnings estimates revised higher in the last 1 week).

% Change F1 Estimates over the last 4 weeks greater than zero (stocks that have seen their annual earnings estimates revised higher in the last 4 weeks).

The above criteria narrowed down the universe of around 7,839 stocks to only 7. Here are the top 5 stocks:

Constellation Brands, Inc. (NYSE:STZFree Report) produces, imports, and markets beer, wine, and spirits in the U.S., Canada, Mexico, New Zealand, and Italy. The company’s estimated earnings growth rate for this year is 18.7%. The Zacks Consensus Estimate for its current year earnings increased 0.5% over the last 60 days. Constellation Brands has a Zacks Rank #2 (Buy).

Celanese Corporation (NYSE:CEFree Report) , a technology and specialty materials company, manufactures and sells value-added chemicals, thermoplastic polymers, and other chemical-based products worldwide. The company’s estimated earnings growth rate for this year is 9.7%. The Zacks Consensus Estimate for its current year earnings increased 1.1% over the last 60 days. Celanese has a Zacks Rank #1 (Strong Buy).

Facebook, Inc. (NASDAQ:FBFree Report) operates as a mobile application and Website that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers worldwide. The company’s estimated earnings growth rate for this year is 127.2%. The Zacks Consensus Estimate for its current year earnings increased 7.6% over the last 60 days. Facebook has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Preferred Bank (NASDAQ:PFBCFree Report) provides various commercial banking products and services to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high net worth individuals in the U.S. The company’s estimated earnings growth rate for this year is 18.4%. The Zacks Consensus Estimate for its current year earnings rose 2.9% over the last 60 days. Preferred Bank has a Zacks Rank #1.

Worthington Industries, Inc. (NYSE:WORFree Report) , a metals manufacturing company, focuses on value-added steel processing and manufactured metal products in the U.S., Europe, Mexico, Canada, and internationally. The company’s estimated earnings growth rate for this year is 34.4%. The Zacks Consensus Estimate for its current year earnings increased 5.7% over the last 60 days. Worthington Industries has a Zacks Rank #2.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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CONSTELLATN BRD (STZ): Free Stock Analysis Report
 
CELANESE CP-A (CE): Free Stock Analysis Report
 
FACEBOOK INC-A (FB): Free Stock Analysis Report
 
PREFERRED BANK (PFBC): Free Stock Analysis Report
 
WORTHINGTON IND (WOR): Free Stock Analysis Report
 
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