ETN Eaton Corp New

CHICAGO, Jan. 24, 2011 /PRNewswire/ -- Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes: Caterpillar (NYSE: CAT), Eaton (NYSE: ETN), Halliburton (HAL), Noble Energy (NE) and Covenant Transportation (Nasdaq: CVTI).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=3567.

Earnings Season In Full Swing

Historically the best indicators of firms likely to report positive surprises are a recent history of positive surprises and rising estimates going into the report. The Zacks Rank is also a good indicator of potential surprises.

Similarly, a recent history of earnings disappointments, cuts in the average estimate for the quarter in the month before the report is due and a poor Zacks Rank (4 or 5) are often red flags pointing to a potential disappointing earnings report.

Potential Positive Surprises:

Caterpillar (NYSE: CAT) is expected to report $1.27 vs. $0.41 last year. Last time out it reported a 11.93% positive surprise, and over the last month the mean estimate for the about to reported quarter has increased by 0.66%. CAT is a Zacks #2 Ranked stock.

Eaton (NYSE: ETN) is expected to report $1.66 vs. $0.35 last year. Last time out it reported a 15.94% positive surprise, and over the last month the mean estimate for the about to reported quarter has increased by 0.53%. ETN is a Zacks #2 Ranked stock.

Halliburton (HAL) is expected to report $0.63 vs. $0.28 last year. Last time out it reported a 3.57% positive surprise, and over the last month the mean estimate for the about to reported quarter has increased by 1.31%. HAL is a Zacks #2 Ranked stock.

Potential Negative Surprises:

Noble Energy (NE) is expected to report $0.34 vs. $1.72 last year. Last time out it reported a 7.14% disappointment and over the last month the mean estimate for the about to reported quarter has dropped by 6.82%. NE is a Zacks #4 Ranked stock.

Covenant Transportation (Nasdaq: CVTI) is expected to report $0.06 vs. a loss of $0.20 last year. Last time out it reported a 18.75% disappointment, and over the last month the mean estimate for the about-to-be-reported quarter has been slashed by 54.3%. CVTI is a Zacks #5 Ranked stock.

Dirk Van Dijk, CFA, is the Chief Equity Strategist for Zacks.com.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have significantly underperformed the S&P 500 (+2% versus +9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=4988.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=3568.

Follow us on Twitter:  http://twitter.com/ZacksResearch

Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE Zacks Investment Research, Inc.