Last week, major banks and financial institutions kicked off the fourth-quarter 2024 earnings season. So far, results have come in line with expectations. This week, several non-financial U.S. corporate bigwigs will release their earnings results. 

Investment in these stocks that are set to beat on earnings with a favorable Zacks Rank are expected to see their stock prices moving northward in the near term. Three such stocks are — United Airlines Holdings Inc. UAL, The Travelers Companies Inc. TRV and Amphenol Corp. APH.

Fourth-Quarter Earnings Results at a Glance

As of Jan. 17, 42 companies of the broad-market index — the S&P 500 — have reported their quarterly financial numbers. Total earnings of these companies are up 21.8% year over year on 7.3% higher revenues, with 81% beating earnings per share (EPS) estimates and 71.4% beating revenue estimates.

Looking at the third quarter as a whole, total earnings for the S&P 500 Index are expected to be up 8.5% from the same period last year on 4.8% higher revenues. This follows 8.4% year-over-year EPS growth on 5.5% higher revenues in the previous quarter.

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

3 Major Stocks to Buy Ahead of Earnings Results

We have narrowed our search to three U.S. corporate behemoths set to report earnings results this week. Each of these stocks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.

Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better (Rank #1 or 2) and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

United Airlines Holdings Inc.

Zacks Rank #1 United Airlines Holdings has been benefiting from swelling passenger volumes. UAL's ability to capitalize on strong corporate travel volumes and premium leisure demand is supporting growth. Low fuel costs are aiding UAL’s bottom line. UAL has an Earnings ESP of +1.57%. The company will report on Jan. 21, after the closing bell. 

Robust Earnings Estimate Revisions 

For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $14.4 billion, suggesting an improvement of 5.6% year over year and earnings per share of $3.01, indicating an increase of 50.5% year over year.

The Zacks Consensus Estimate for fourth-quarter earnings has improved 1% in the last seven days. The company delivered positive earnings surprises in the last four reported quarters with the average beat being 26.9%.   

Attractive Valuation of UAL Stock

United Airlines Holdings currently has a forward P/E of 8.55X compared with the industry’s forward P/E of 9.11X and the S&P 500’s forward P/E of 18.18X. It has a P/S of 0.63X compared with the industry’s P/S of 0.58X and the S&P 500’s P/S of 3.05X. 

UAL has a P/B of 3.09X compared with the industry’s P/S of 1.85X and the S&P 500’s P/S of 3.58X. United Airlines Holdings provides a return on equity (ROE) of 30.72% against the industry’s ROE of 12.55% and the S&P 500’s ROE of 16.88%. 

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The Travelers Companies Inc.

Zacks Rank #2 The Travelers Companies boasts a strong market presence in auto, homeowners’ insurance and commercial U.S. property-casualty insurance with solid inorganic growth. A high retention rate, a rise in new business and positive renewal premium change bode well. TRV’s commercial businesses should perform well owing to market stability. 

TRV remains optimistic about the personal line of business, given growth at the profitable agencies like auto and homeowners business. Strong and reliable returns from the growing fixed-income portfolio should drive net investment income. TRV has an Earnings ESP of +8.12%. The company will report on Jan. 22, before the opening bell. 

Strong Earnings Estimate Revisions 

For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $11.93 billion, suggesting an improvement of 9.1% year over year and earnings per share of $6.53, indicating a decrease of 6.9% year over year.

The Zacks Consensus Estimate for fourth-quarter earnings has improved 0.5% in the last seven days. TRV delivered positive earnings surprises in three out of the last four reported quarters with the average beat being 25.4%.   

Excellent Valuation of TRV Shares

The Travelers Companies currently has a forward P/E of 11.76X compared with the industry’s forward P/E of 11.60X and the S&P 500’s forward P/E of 18.18X. It has a P/S of 1.20X compared with the industry’s P/S of 1.20X and the S&P 500’s P/S of 3.05X. 

TRV has a P/B of 1.96X compared with the industry’s P/S of 1.49X and the S&P 500’s P/S of 3.58X. United Airlines Holdings provides a ROE of 17.69% against the industry’s ROE of 15.32% and the S&P 500’s ROE of 16.88%. 

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Amphenol Corp.

Zacks Rank #2 Amphenol is benefiting from its strong portfolio of solutions, including high-technology interconnect products. APH’s growth prospects are also bolstered by strong demand for AI technologies in the IT datacom market and increased investments in the defense sector. 

Acquisitions have expanded APH’s high technology and value-added interconnect product offerings. Strong contributions from the acquisitions, including CIT (Carlisle Interconnect Technologies) and Lutze US, are expected to enhance Amphenol’s product offerings and sales capabilities, especially in high-technology interconnect products. APH has an Earnings ESP of +1.71%. The company will report on Jan. 22, before the opening bell. 

Solid Earnings Estimate Revisions 

For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $4.03 billion, suggesting an improvement of 21.3% year over year and earnings per share of $0.50, indicating an increase of 5% year over year.

The Zacks Consensus Estimate for fourth-quarter earnings has improved 8.7% in the last 30 days. APH delivered positive earnings surprises in the last four reported quarters with the average beat being 7.7%.   

Impressive Valuation of APH Stock

Amphenol currently has a forward P/E of 32.03X compared with the industry’s forward P/E of 32.03X and the S&P 500’s forward P/E of 18.18X. APH provides a ROE of 24.68% against the industry’s ROE of 0.63% and the S&P 500’s ROE of 16.88%. Amphenol has a current net margin of 15.40% compared with industry’s net margin of 0.52% and the S&P 500’s net margin of 12.50%.

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