Philip van Doorn

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Feb. 22, 2020, 2:24 p.m. EST

Wall Street has boosted 2020 estimates for these S&P 500 companies the most

Looking at these stocks may help you spot trends as well as possible bargains or recovery plays

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By Philip van Doorn, MarketWatch


Bloomberg
Wall Street analysts have increased their 2020 sales and earnings estimates significantly for Hasbro, the maker of Play-Doh.

We’re getting close to the end of another earnings season, with 77% of S&P 500 companies reporting their results through Feb. 20. Analysts react not only to actual quarterly results, but to changes in companies’ guidance (if any) for their fiscal years, as well as industry developments, legal or regulatory challenges as well as world events, such as the coronavirus outbreak.

Higher estimates can push stock prices higher, which may be of particular importance because of how much price-to-earnings valuations have increased for U.S. stocks. The weighted aggregate consensus forward price-to-earnings ratio for the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.45% has increased to 19 from 16.3 a year ago. The current forward P/E ratio for the benchmark index is the highest since May 2002, according to data provided by FactSet:


FactSet
The S&P 500’s forward price-to-earnings ratio is at its highest level since May 2002.

“Reassuringly, topline growth has stayed elevated, at +4%” this earnings season, Mislav Matejka, the head of JPMorgan’s global equity strategy, wrote in an earnings-season summary on Feb. 21. He was also noted that “blended EPS growth [actual numbers combined with estimates for companies that hadn’t reported yet] for S&P 500 has inflected higher.”

Looking at which companies have had their sale and earnings estimates raised the most by analysts since the end of 2019 may help you spot trends as well as possible bargains or recovery plays. If you see anything of interest, always do your own research for more insight into what led to the revised estimates.

Related: Wall Street has slashed these S&P 500 companies’ estimates by as much as 70%

The data below includes estimates for calendar 2020.

Largest sales estimate increases

Here are the 20 S&P 500 stocks with the largest increases in consensus 2020 revenue estimates since the end of 2019:

Company Ticker Industry Change in 2020 sales estimate from Dec. 31 to Feb. 20 Increase in 2020 EPS estimate from Dec. 31 to Feb. 20
Centene Corp. /zigman2/quotes/208900023/lastsale CNC Managed Health Care 34.5% 0.3%
Prologis Inc. /zigman2/quotes/200785374/lastsale PLD Real-estate investment Trusts 27.0% 13.1%
Hasbro Inc. /zigman2/quotes/201249319/lastsale HAS Recreational Products 25.3% 9.2%
Vertex Pharmaceuticals Inc. /zigman2/quotes/202259802/lastsale VRTX Biotechnology 10.3% 13.6%
Leidos Holdings Inc. /zigman2/quotes/202902477/lastsale LDOS Information Technology Services 8.2% 3.5%
Lam Research Corp. /zigman2/quotes/208077897/lastsale LRCX Electronic Production Equipment 7.5% 9.2%
T. Rowe Price Group /zigman2/quotes/203200152/lastsale TROW Investment Managers 5.4% 9.0%
Applied Materials Inc. /zigman2/quotes/209393259/lastsale AMAT Industrial Machinery 5.2% 10.3%
E-Trade Financial Corp. /zigman2/quotes/205731930/lastsale ETFC Investment Banks/Brokers 4.7% 3.4%
Garmin Ltd. /zigman2/quotes/203929352/lastsale GRMN Telecommunications Equipment 4.3% 7.9%
Regeneron Pharmaceuticals Inc. /zigman2/quotes/203149337/lastsale REGN Biotechnology 4.3% 6.1%
Cigna Corp. /zigman2/quotes/208431372/lastsale CI Managed Health Care 4.1% -0.2%
BlackRock Inc. /zigman2/quotes/207946232/lastsale BLK Investment Managers 3.5% 5.1%
Nvidia Corp. /zigman2/quotes/200467500/lastsale NVDA Semiconductors 3.5% 7.1%
Invesco Ltd. /zigman2/quotes/200294387/lastsale IVZ Investment Managers 3.3% 1.3%
Apple Inc. /zigman2/quotes/202934861/lastsale AAPL Telecommunications Equipment 3.2% 5.1%
Raymond James Financial Inc. /zigman2/quotes/201697413/lastsale RJF Investment Banks/Brokers 3.2% 0.2%
Microchip Technology Inc. /zigman2/quotes/208326291/lastsale MCHP Semiconductors 3.1% 5.0%
Western Digital Corp. /zigman2/quotes/204213617/lastsale WDC Computer Peripherals 3.1% 20.2%
ConocoPhillips /zigman2/quotes/207605056/lastsale COP Oil & Gas Production 3.0% -0.6%
Source: FactSet

You can click the tickers for more about each company.

To be sure, sales don’t tell the whole story. Cigna  and ConocoPhillips  both had their consensus EPS estimates cut, even as revenue estimates were increased.

Here’s a summary of current analyst opinion for the group, including changes in consensus price targets:

Company Ticker share 'buy' ratings Share neutral ratings Share 'sell' ratings Closing price - Feb. 20 Cons. price target Implied 12-month upside potential Change in price target since Dec. 31
Centene Corp. 90% 10% 0% $65.73 $81.58 24% 14%
Prologis Inc. 83% 11% 6% $98.95 $100.18 1% 6%
Hasbro Inc. 59% 41% 0% $98.88 $115.25 17% 0%
Vertex Pharmaceuticals Inc. 76% 24% 0% $245.10 $266.29 9% 13%
Leidos Holdings Inc. 40% 60% 0% $119.27 $119.33 0% 22%
Lam Research Corp. 65% 26% 9% $328.49 $340.05 4% 23%
T. Rowe Price Group 35% 53% 12% $137.74 $138.57 1% 12%
Applied Materials Inc. 84% 12% 4% $66.40 $75.22 13% 11%
E-Trade Financial Corp. 50% 50% 0% $54.73 $53.54 -2% 15%
Garmin Ltd. 0% 71% 29% $99.81 $97.25 -3% 15%
Regeneron Pharmaceuticals Inc. 37% 63% 0% $399.14 $417.71 5% 6%
Cigna Corp. 88% 8% 4% $220.41 $252.64 15% 9%
BlackRock Inc. 76% 24% 0% $566.92 $591.33 4% 9%
Nvidia Corp. 74% 21% 5% $308.70 $308.95 0% 31%
Invesco Ltd. 17% 66% 17% $18.03 $18.47 2% 2%
Apple Inc. 59% 34% 7% $320.30 $329.58 3% 24%
Raymond James Financial Inc. 50% 50% 0% $101.26 $104.11 3% 7%
Microchip Technology Inc. 82% 18% 0% $108.13 $122.84 14% 12%
Western Digital Corp. 58% 39% 3% $69.06 $80.15 16% 26%
ConocoPhillips 88% 12% 0% $58.88 $74.57 27% 1%
Source: FactSet

Largest EPS estimate increases

Here are the 20 S&P 500 stocks with the largest increases in consensus 2020 earnings-per-share estimates since the end of 2019:

Company Ticker Industry Increase in 2020 EPS estimate from Dec. 31 to Feb. 20 Change in 2020 sales estimate   from Dec. 31 to Feb. 20
Noble Energy Inc. /zigman2/quotes/210375673/lastsale NBL Oil & Gas Production 87.7% -3.7%
Apartment Investment & Management Co Class A /zigman2/quotes/209177534/lastsale AIV Real-estate investment Trusts 47.0% -1.9%
Western Digital Corp. Computer Peripherals 20.2% 3.1%
SL Green Realty Corp. /zigman2/quotes/208985878/lastsale SLG Real-estate investment Trusts 16.7% 1.9%
Vertex Pharmaceuticals Inc. Biotechnology 13.6% 10.3%
Helmerich & Payne Inc. /zigman2/quotes/209685666/lastsale HP Contract Drilling 13.6% 1.1%
Prologis Inc. Real-estate investment Trusts 13.1% 27.0%
Incyte Corp. /zigman2/quotes/204510994/lastsale INCY Biotechnology 12.7% 0.2%
ViacomCBS Inc. Class B /zigman2/quotes/200340870/lastsale VIAC Broadcasting 12.6% -1.7%
NortonLifeLock Inc. /zigman2/quotes/200957356/lastsale NLOK Packaged Software 11.1% -3.5%
Applied Materials Inc. Industrial Machinery 10.3% 5.2%
Hasbro Inc. Recreational Products 9.2% 25.3%
Lam Research Corp. Electronic Production Equipment 9.2% 7.5%
T. Rowe Price Group Investment Managers 9.0% 5.4%
Netflix Inc. /zigman2/quotes/202353025/lastsale NFLX Cable/Satellite TV 8.5% -0.5%
Williams Companies Inc. /zigman2/quotes/205467183/lastsale WMB Oil & Gas Pipelines 8.2% 1.6%
Garmin Ltd. Telecommunications Equipment 7.9% 4.3%
DaVita Inc. /zigman2/quotes/204229673/lastsale DVA Medical/Nursing Services 7.5% 0.6%
Dish Network Corp. Class A /zigman2/quotes/207505872/lastsale DISH Cable/Satellite TV 7.5% 2.0%
Source: FactSet

Here are ratings and price targets for this group, including changes in consensus price targets:

Company Ticker share 'buy' ratings Share neutral ratings Share 'sell' ratings Closing price - Feb. 20 Cons. price target Implied 12-month upside potential Change in price target since Dec. 31
Noble Energy Inc. 81% 19% 0% $18.55 $27.93 51% -2%
Apartment Investment & Management Co Class A 29% 59% 12% $55.16 $56.21 2% 0%
Western Digital Corp. 58% 39% 3% $69.06 $80.15 16% 26%
SL Green Realty Corp. 47% 42% 11% $94.16 $98.71 5% 3%
Vertex Pharmaceuticals Inc. 76% 24% 0% $245.10 $266.29 9% 13%
Helmerich & Payne Inc. 44% 40% 16% $45.47 $46.08 1% 4%
Prologis Inc. 83% 11% 6% $98.95 $100.18 1% 6%
Incyte Corp. 45% 55% 0% $82.77 $91.50 11% -1%
ViacomCBS Inc. Class B 46% 46% 8% $29.29 $42.43 45% -10%
NortonLifeLock Inc. 16% 74% 10% $20.79 $19.64 -6% -23%
Applied Materials Inc. 84% 12% 4% $66.40 $75.22 13% 11%
Hasbro Inc. 59% 41% 0% $98.88 $115.25 17% 0%
Lam Research Corp. 65% 26% 9% $328.49 $340.05 4% 23%
T. Rowe Price Group 35% 53% 12% $137.74 $138.57 1% 12%
Netflix Inc. 64% 24% 12% $386.00 $373.63 -3% 2%
Williams Companies Inc. 79% 21% 0% $22.05 $27.17 23% -1%
Garmin Ltd. 0% 71% 29% $99.81 $97.25 -3% 15%
DaVita Inc. 23% 69% 8% $84.65 $86.70 2% 18%
Dish Network Corp. Class A 33% 45% 22% $41.00 $43.06 5% 4%
Source: FactSet

Also read: Wall Street has slashed these S&P 500 companies’ estimates by as much as 70%

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/zigman2/quotes/210599714/realtime
US : S&P US
2,789.82
+39.84 +1.45%
Volume: 0.00
April 9, 2020 5:15p
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/zigman2/quotes/208900023/lastsale
US : U.S.: NYSE
$ 66.42
+1.27 +1.95%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
21.12
Dividend Yield
N/A
Market Cap
$38.98 billion
Rev. per Employee
$1.27M
loading...
/zigman2/quotes/200785374/lastsale
US : U.S.: NYSE
$ 91.73
+5.55 +6.44%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
37.24
Dividend Yield
2.53%
Market Cap
$67.80 billion
Rev. per Employee
$1.73M
loading...
/zigman2/quotes/201249319/lastsale
US : U.S.: Nasdaq
$ 75.67
+1.52 +2.05%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
18.92
Dividend Yield
3.59%
Market Cap
$10.37 billion
Rev. per Employee
$848,083
loading...
/zigman2/quotes/202259802/lastsale
US : U.S.: Nasdaq
$ 246.61
-3.05 -1.22%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
54.74
Dividend Yield
N/A
Market Cap
$63.94 billion
Rev. per Employee
$1.22M
loading...
/zigman2/quotes/202902477/lastsale
US : U.S.: NYSE
$ 95.46
+0.02 +0.02%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
20.82
Dividend Yield
1.42%
Market Cap
$13.54 billion
Rev. per Employee
$318,562
loading...
/zigman2/quotes/208077897/lastsale
US : U.S.: Nasdaq
$ 258.28
-8.47 -3.18%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
19.14
Dividend Yield
1.78%
Market Cap
$37.59 billion
Rev. per Employee
$996,856
loading...
/zigman2/quotes/203200152/lastsale
US : U.S.: Nasdaq
$ 105.16
-0.35 -0.33%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
12.09
Dividend Yield
3.42%
Market Cap
$24.54 billion
Rev. per Employee
$765,110
loading...
/zigman2/quotes/209393259/lastsale
US : U.S.: Nasdaq
$ 49.59
-1.87 -3.63%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
16.41
Dividend Yield
1.77%
Market Cap
$45.54 billion
Rev. per Employee
$800,095
loading...
/zigman2/quotes/205731930/lastsale
US : U.S.: Nasdaq
$ 41.76
+1.84 +4.61%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
10.91
Dividend Yield
1.34%
Market Cap
$9.23 billion
Rev. per Employee
$761,500
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/zigman2/quotes/203929352/lastsale
US : U.S.: Nasdaq
$ 78.65
+1.29 +1.67%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
15.76
Dividend Yield
2.90%
Market Cap
$15.00 billion
Rev. per Employee
$257,496
loading...
/zigman2/quotes/203149337/lastsale
US : U.S.: Nasdaq
$ 512.96
+0.63 +0.12%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
27.79
Dividend Yield
N/A
Market Cap
$56.44 billion
Rev. per Employee
$906,865
loading...
/zigman2/quotes/208431372/lastsale
US : U.S.: NYSE
$ 181.83
-4.39 -2.36%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
13.54
Dividend Yield
0.02%
Market Cap
$67.63 billion
Rev. per Employee
$658,753
loading...
/zigman2/quotes/207946232/lastsale
US : U.S.: NYSE
$ 471.42
+20.45 +4.53%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
16.56
Dividend Yield
3.08%
Market Cap
$72.99 billion
Rev. per Employee
$952,953
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/zigman2/quotes/200467500/lastsale
US : U.S.: Nasdaq
$ 262.95
-4.00 -1.50%
Volume: 0.00
April 9, 2020 4:15p
P/E Ratio
58.17
Dividend Yield
0.24%
Market Cap
$160.93 billion
Rev. per Employee
$882,428
loading...
/zigman2/quotes/200294387/lastsale
US : U.S.: NYSE
$ 9.86
+0.39 +4.12%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
7.67
Dividend Yield
12.58%
Market Cap
$4.52 billion
Rev. per Employee
$702,333
loading...
/zigman2/quotes/202934861/lastsale
US : U.S.: Nasdaq
$ 267.99
+1.92 +0.72%
Volume: 0.00
April 9, 2020 4:15p
P/E Ratio
21.17
Dividend Yield
1.15%
Market Cap
$1172.58 billion
Rev. per Employee
$1.98M
loading...
/zigman2/quotes/201697413/lastsale
US : U.S.: NYSE
$ 69.44
+2.84 +4.26%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
9.44
Dividend Yield
2.13%
Market Cap
$9.67 billion
Rev. per Employee
$412,787
loading...
/zigman2/quotes/208326291/lastsale
US : U.S.: Nasdaq
$ 78.45
-1.07 -1.35%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
31.00
Dividend Yield
1.87%
Market Cap
$18.79 billion
Rev. per Employee
$352,817
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/zigman2/quotes/204213617/lastsale
US : U.S.: Nasdaq
$ 45.05
-0.29 -0.64%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
4.44%
Market Cap
$13.47 billion
Rev. per Employee
$270,824
loading...
/zigman2/quotes/207605056/lastsale
US : U.S.: NYSE
$ 34.73
-0.95 -2.66%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
5.43
Dividend Yield
4.84%
Market Cap
$37.40 billion
Rev. per Employee
$3.37M
loading...
/zigman2/quotes/210375673/lastsale
US : U.S.: Nasdaq
$ 7.51
+0.29 +4.02%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
6.39%
Market Cap
$3.64 billion
Rev. per Employee
$1.91M
loading...
/zigman2/quotes/209177534/lastsale
US : U.S.: NYSE
$ 39.97
+3.43 +9.39%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
12.53
Dividend Yield
4.10%
Market Cap
$5.95 billion
Rev. per Employee
$923,914
loading...
/zigman2/quotes/208985878/lastsale
US : U.S.: NYSE
$ 54.17
+5.45 +11.19%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
18.38
Dividend Yield
6.53%
Market Cap
$4.22 billion
Rev. per Employee
$1.44M
loading...
/zigman2/quotes/209685666/lastsale
US : U.S.: NYSE
$ 19.18
+0.41 +2.18%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
N/A
Dividend Yield
14.81%
Market Cap
$2.09 billion
Rev. per Employee
$303,392
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/zigman2/quotes/204510994/lastsale
US : U.S.: Nasdaq
$ 86.81
-0.94 -1.07%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
42.32
Dividend Yield
N/A
Market Cap
$18.82 billion
Rev. per Employee
$1.38M
loading...
/zigman2/quotes/200340870/lastsale
US : U.S.: Nasdaq
$ 16.56
+0.77 +4.84%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
2.85
Dividend Yield
5.80%
Market Cap
$10.16 billion
Rev. per Employee
$867,543
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/zigman2/quotes/200957356/lastsale
US : U.S.: Nasdaq
$ 19.37
-0.21 -1.07%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
3.39
Dividend Yield
2.58%
Market Cap
$11.63 billion
Rev. per Employee
$403,729
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/zigman2/quotes/202353025/lastsale
US : U.S.: Nasdaq
$ 370.72
-0.40 -0.11%
Volume: 0.00
April 9, 2020 4:15p
P/E Ratio
89.68
Dividend Yield
N/A
Market Cap
$162.68 billion
Rev. per Employee
$2.22M
loading...
/zigman2/quotes/205467183/lastsale
US : U.S.: NYSE
$ 16.59
+1.25 +8.15%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
23.77
Dividend Yield
9.64%
Market Cap
$20.13 billion
Rev. per Employee
$1.63M
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/zigman2/quotes/204229673/lastsale
US : U.S.: NYSE
$ 74.82
-2.14 -2.78%
Volume: 0.00
April 9, 2020 6:30p
P/E Ratio
13.95
Dividend Yield
N/A
Market Cap
$9.40 billion
Rev. per Employee
$146,781
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/zigman2/quotes/207505872/lastsale
US : U.S.: Nasdaq
$ 23.07
+1.29 +5.92%
Volume: 0.00
April 9, 2020 4:00p
P/E Ratio
8.90
Dividend Yield
N/A
Market Cap
$12.07 billion
Rev. per Employee
$851,331
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Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.com. He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York.

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