Gauging Earnings Prospects

Last week, I posted my "distant early warning" for names that are at risk of missing earnings. The indicator is extreme estimate cuts by analysts, which indicate that they are getting wind that business conditions are deteriorating. While this is not a perfect indicator -- nothing ever is -- you need to work hard to justify why you are long a name in which numbers are being cut.

On the positive side, companies whose estimates steadily rise during the quarter have a better likelihood of beating estimates and raising guidance, and that is usually good for the stock. The table below shows names that have had the best increases in first-quarter earnings-per-share estimates during the quarter. These are names that could have the best reaction to positive earnings reports over the next few weeks....123 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.