Tesla, Take-Two and Exxon are among the exceptions to this big problem for stock prices

By Philip van Doorn

Over the long haul, stock prices are pushed higher by steady increases in estimates for companies’ sales and earnings. But this process has been reversed recently for many sectors and scores of companies — since June 30, consensus 12-month sales estimates have been cut for 172 companies in the S&P 500.

Still, there are always exceptions, and some of those are listed below, followed by a round up of estimate changes by sector and a list of 20 companies in the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.80% that have suffered the largest recent cuts in sales estimates.

Let’s begin by accentuating the positive.

Biggest sales estimate increases among the S&P 500

When looking at individual companies, it can be more helpful to begin with changes in revenue projections, rather than earnings, because of the accounting vagaries that can distort any company’s profit.

Here are the 20 companies in the S&P 500 with the largest increases in consensus 12-month sales estimates since June 30:

Click on the tickers for more about each company, including news coverage, financials and charts. Then read Tomi Kilgore’s detailed guide to the wealth of information available for free on MarketWatch quote pages.

Take-Two Interactive Software Inc. /zigman2/quotes/204008930/composite TTWO -1.98% tops the list. The company owns Rockstar Games, which develops the Grand Theft Auto series of videogames, along with several other popular gaming franchises. Jefferies analyst Andrew Uerkwitz cited the company’s “unprecedented wave of content” when raising his target price for the shares by 66% to $200 on Sept. 9. Anticipation is building for the release of GTA VI, although Take-Two has made no specific announcement, other than to say that it has allocated more resources to that game, while thanking staff members who have supported GTA V and its expansions since its release in 2013.

Uerkwitz rates Take-Two a “buy” and wrote in a note to clients that he would “happily wait patiently” for the new game’s release. When GTA VI is announced, the analyst expects “a rerating in the valuation and consistent stock appreciation as excitement and anticipation builds.”

Tesla Inc. /zigman2/quotes/203558040/lastsale TSLA +1.37% ranks fourth the list, with its new factories in Texas and Germany expected to feed continued production increases, along with a boost to demand from renewed electric-vehicle tax subsidies in the Inflation Reduction Act an the expected availability of its Cyber Truck in 2023.

For Exxon Mobil Corp. /zigman2/quotes/204455864/composite XOM -0.70% , earnings estimates have continued to increase, despite the pull back in the price of West Texas crude oil .

Lower on the list is Comerica Inc. /zigman2/quotes/207245846/composite CMA +3.40% , the Dallas-based bank that has already seen a large increase in its net interest income. The bank tops a list of lenders expected to take best advantage of the rising-interest-rate environment .

Companies with “N/A” for the current forward price-to-earnings ratio are those expected to show negative EPS over the next 12 months.

Forward P/E is the most commonly used price valuation for stocks. This is a company’s current share price divided by the consensus 12-month earnings-per-share estimate among analysts working for brokerage firms. If the rolling 12-month earnings estimates increase steadily, higher stock prices are supported over time. Investors are used to these numbers going up quarter-to-quarter as companies file financial statements.

P/E ratios are down, but maybe not down enough

There is pressure on stocks because of the Federal Reserve’s tightening of monetary policy in an effort to bring inflation under control. This has pushed interest rates higher, making bonds a viable choice for many investors who had shied away from them for years.

/zigman2/quotes/210599714/realtime

Add to watchlist SPX

S&P 500 Index

US : S&P US

4,585.59

+36.25 +0.80%

Volume: 0.00

Dec. 7, 2023 5:07p

/zigman2/quotes/204008930/composite

Add to watchlist TTWO

Take-Two Interactive Software Inc.

US : U.S.: Nasdaq

$ 154.21

-3.11 -1.98%

Volume: 2.44M

Dec. 7, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$26.76 billion

Rev. per Employee

$469,594

/zigman2/quotes/200578017/composite

Add to watchlist ALB

Albemarle Corp.

US : U.S.: NYSE

$ 125.35

+7.05 +5.96%

Volume: 3.97M

Dec. 7, 2023 4:00p

P/E Ratio

4.44

Dividend Yield

1.28%

Market Cap

$13.88 billion

Rev. per Employee

$1.34M

/zigman2/quotes/207948472/composite

Add to watchlist ENPH

Enphase Energy Inc.

US : U.S.: Nasdaq

$ 107.17

+0.40 +0.37%

Volume: 2.57M

Dec. 7, 2023 4:00p

P/E Ratio

26.99

Dividend Yield

N/A

Market Cap

$14.58 billion

Rev. per Employee

$961,669

/zigman2/quotes/203558040/lastsale

Add to watchlist TSLA

Tesla Inc.

US : U.S.: Nasdaq

$ 242.64

+3.27 +1.37%

Volume: 107.14M

Dec. 7, 2023 4:15p

P/E Ratio

78.13

Dividend Yield

N/A

Market Cap

$760.94 billion

Rev. per Employee

$750,256

/zigman2/quotes/204455864/composite

Add to watchlist XOM

Exxon Mobil Corp.

US : U.S.: NYSE

$ 98.42

-0.69 -0.70%

Volume: 29.99M

Dec. 7, 2023 4:02p

P/E Ratio

9.78

Dividend Yield

3.86%

Market Cap

$397.05 billion

Rev. per Employee

$5.56M

/zigman2/quotes/203832174/composite

Add to watchlist HES

Hess Corp.

US : U.S.: NYSE

$ 132.23

-4.05 -2.97%

Volume: 7.49M

Dec. 7, 2023 4:00p

P/E Ratio

25.55

Dividend Yield

1.32%

Market Cap

$41.86 billion

Rev. per Employee

$7.13M

/zigman2/quotes/202325446/composite

Add to watchlist CCL

Carnival Corp.

US : U.S.: NYSE

$ 17.93

+0.45 +2.57%

Volume: 33.50M

Dec. 7, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$21.86 billion

Rev. per Employee

N/A

/zigman2/quotes/208455654/composite

Add to watchlist KMI

Kinder Morgan Inc.

US : U.S.: NYSE

$ 17.50

-0.03 -0.17%

Volume: 16.54M

Dec. 7, 2023 4:00p

P/E Ratio

16.00

Dividend Yield

6.46%

Market Cap

$38.97 billion

Rev. per Employee

$1.44M

/zigman2/quotes/210488727/composite

Add to watchlist HAL

Halliburton Co.

US : U.S.: NYSE

$ 34.42

-0.44 -1.26%

Volume: 11.22M

Dec. 7, 2023 4:00p

P/E Ratio

11.84

Dividend Yield

1.86%

Market Cap

$31.20 billion

Rev. per Employee

$508,022

/zigman2/quotes/204634330/composite

Add to watchlist EOG

EOG Resources Inc.

US : U.S.: NYSE

$ 118.35

-1.40 -1.17%

Volume: 3.52M

Dec. 7, 2023 4:00p

P/E Ratio

8.79

Dividend Yield

3.08%

Market Cap

$69.83 billion

Rev. per Employee

$8.33M

/zigman2/quotes/205501174/composite

Add to watchlist LW

Lamb Weston Holdings Inc.

US : U.S.: NYSE

$ 101.00

0.00 0.00%

Volume: 1.62M

Dec. 7, 2023 4:00p

P/E Ratio

14.59

Dividend Yield

1.11%

Market Cap

$14.64 billion

Rev. per Employee

$577,480

/zigman2/quotes/206646342/composite

Add to watchlist CAH

Cardinal Health Inc.

US : U.S.: NYSE

$ 106.38

+0.51 +0.48%

Volume: 1.75M

Dec. 7, 2023 4:00p

P/E Ratio

175.20

Dividend Yield

1.86%

Market Cap

$26.09 billion

Rev. per Employee

$4.38M

/zigman2/quotes/206743037/composite

Add to watchlist CPT

Camden Property Trust

US : U.S.: NYSE

$ 93.40

+0.01 +0.01%

Volume: 667,365

Dec. 7, 2023 4:00p

P/E Ratio

44.83

Dividend Yield

4.28%

Market Cap

$9.97 billion

Rev. per Employee

$928,332

/zigman2/quotes/208854639/composite

Add to watchlist RCL

Royal Caribbean Group

US : U.S.: NYSE

$ 119.49

+1.32 +1.12%

Volume: 2.33M

Dec. 7, 2023 4:00p

P/E Ratio

37.26

Dividend Yield

0.00%

Market Cap

$30.28 billion

Rev. per Employee

$128,513

/zigman2/quotes/200785374/composite

Add to watchlist PLD

Prologis Inc.

US : U.S.: NYSE

$ 118.95

-0.10 -0.08%

Volume: 3.07M

Dec. 7, 2023 4:00p

P/E Ratio

37.99

Dividend Yield

2.93%

Market Cap

$112.78 billion

Rev. per Employee

$3.20M

/zigman2/quotes/204183397/composite

Add to watchlist NCLH

Norwegian Cruise Line Holdings Ltd.

US : U.S.: NYSE

$ 18.77

+0.59 +3.25%

Volume: 16.24M

Dec. 7, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$7.73 billion

Rev. per Employee

$207,779

/zigman2/quotes/204989507/composite

Add to watchlist ATO

Atmos Energy Corp.

US : U.S.: NYSE

$ 114.53

-0.20 -0.17%

Volume: 864,832

Dec. 7, 2023 4:00p

P/E Ratio

18.66

Dividend Yield

2.81%

Market Cap

$17.04 billion

Rev. per Employee

$851,834

/zigman2/quotes/208764441/composite

Add to watchlist VICI

VICI Properties Inc.

US : U.S.: NYSE

$ 30.43

+0.19 +0.63%

Volume: 6.83M

Dec. 7, 2023 4:00p

P/E Ratio

12.80

Dividend Yield

5.46%

Market Cap

$31.28 billion

Rev. per Employee

$150.00M

/zigman2/quotes/207245846/composite

Add to watchlist CMA

Comerica Inc.

US : U.S.: NYSE

$ 49.24

+1.62 +3.40%

Volume: 2.93M

Dec. 7, 2023 4:00p

P/E Ratio

5.57

Dividend Yield

5.77%

Market Cap

$6.28 billion

Rev. per Employee

$652,634

/zigman2/quotes/201012972/composite

Add to watchlist SLB

Schlumberger Ltd.

US : U.S.: NYSE

$ 48.46

-0.67 -1.36%

Volume: 12.96M

Dec. 7, 2023 4:00p

P/E Ratio

16.83

Dividend Yield

2.06%

Market Cap

$70.18 billion

Rev. per Employee

$323,485

/zigman2/quotes/204008930/composite

Add to watchlist TTWO

Take-Two Interactive Software Inc.

US : U.S.: Nasdaq

$ 154.21

-3.11 -1.98%

Volume: 2.44M

Dec. 7, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$26.76 billion

Rev. per Employee

$469,594

/zigman2/quotes/203558040/lastsale

Add to watchlist TSLA

Tesla Inc.

US : U.S.: Nasdaq

$ 242.64

+3.27 +1.37%

Volume: 107.14M

Dec. 7, 2023 4:15p

P/E Ratio

78.13

Dividend Yield

N/A

Market Cap

$760.94 billion

Rev. per Employee

$750,256

/zigman2/quotes/204455864/composite

Add to watchlist XOM

Exxon Mobil Corp.

US : U.S.: NYSE

$ 98.42

-0.69 -0.70%

Volume: 29.99M

Dec. 7, 2023 4:02p

P/E Ratio

9.78

Dividend Yield

3.86%

Market Cap

$397.05 billion

Rev. per Employee

$5.56M

/zigman2/quotes/207245846/composite

Add to watchlist CMA

Comerica Inc.

US : U.S.: NYSE

$ 49.24

+1.62 +3.40%

Volume: 2.93M

Dec. 7, 2023 4:00p

P/E Ratio

5.57

Dividend Yield

5.77%

Market Cap

$6.28 billion

Rev. per Employee

$652,634