We are in the initial stage of the fourth-quarter 2024 earnings season. So far, results have come in line with expectations. As of Jan. 24, 78 companies of the broad-market index — the S&P 500 — have reported their quarterly financial numbers. Total earnings of these companies are up 17.4% year over year on 6.2% higher revenues, with 83.3% beating earnings per share (EPS) estimates and 66.7% beating revenue estimates.

Looking at the third quarter as a whole, total earnings for the S&P 500 Index are expected to be up 9.2% 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.

This week four “Magnificent 7” companies will report earnings results. Aside from these. several bigwigs will also report their quarterly financial numbers. Investing in these biggies that are poised to beat on earnings, carry a favorable Zacks Rank and are likely to see momentum in stock prices in the near term should lead to solid returns.

Five such stocks are: Cardinal Health Inc. CAH, Logitech International S.A. LOGI, ServiceNow Inc. NOW, Corning Inc. GLW and Automatic Data Processing Inc. ADP.  

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

5 Large-Cap Stocks to Buy Ahead of Earnings Results

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

Cardinal Health Inc.

Cardinal Health expects revenues from its Pharmaceutical segment to decline 4-6% year over year. The anticipated decline reflects a $39 billion revenue headwind due to the OptumRx contract expiration in June 2024. However, segmental profit is likely to increase 4-6%. 

CAH’s diversified product portfolio and long-term supply agreements augur well. CAH’s expansion of medical distribution centers in Ohio and South Carolina is encouraging. Cardinal Health is prioritizing growth in specialty care by investing in Navista, and acquiring Specialty Networks and ION. CAH has an Earnings ESP of +0.42%. The company will report on Jan. 30, before the opening bell. 

For second-quarter fiscal 2025, the Zacks Consensus Estimate currently shows revenues of $55 billion, suggesting a decline of 4.3% year over year and earnings per share of $1.74, indicating a decrease of 4.4% year over year. 

The Zacks Consensus Estimate for second-quarter fiscal 2025 earnings remained the same in the last 60 days. The company delivered positive earnings surprises in the last four reported quarters, with the average beat being 11.2%.   

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Logitech International S.A.

Logitech’s back-to-back strong quarterly results have boosted investors’ confidence in its recovery from the post-pandemic downturn. Increasing hybrid work trends are likely to boost demand for LOGI’s video collaboration, keyboards & combos and pointing device tools. 

Thriving cloud-based video conferencing services continue to be LOGI’s key catalyst. The rising adoption of new mobile platforms in both mature and emerging markets should fuel the demand for its peripherals and accessories. LOGI’s partnerships with cloud providers like Zoom Video and Microsoft are major upsides. LOGI has an Earnings ESP of +2.83%. The company will report on Jan. 28, after the closing bell. 

For third-quarter fiscal 2025, the Zacks Consensus Estimate currently shows revenues of $1.24 billion, suggesting a decline of 0.9% year over year and earnings per share of $1.38, indicating a decrease of 9.8% year over year. 

The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings has improved 2.2% in the last 60 days. The company delivered positive earnings surprises in the last four reported quarters, with the average beat being 32.5%.

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ServiceNow Inc.

ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. It had 2020 total customers with more than $1 million in annual contract value (ACV) at the end of third quarter, which represents 14% year-over-year growth in customers. 

NOW had 15 deals greater than $5 million in net new ACV and six deals of more than $10 million. It closed 96 deals greater than $1 million net new ACV. NOW had 44 new Now Assist customers spending more than $1 million in ACV, including six with more than $5 million and two with more than $10 million. NOW is riding on an expanding partner base. NOW has an Earnings ESP of +0.91%. The company will report on Jan. 29 after the closing bell. 

For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $2.95 billion, suggesting an increase of 21.2% year over year and earnings per share of $3.58, indicating an improvement of 15.1% year over year. 

The Zacks Consensus Estimate for fourth-quarter 2024 earnings remained the same in the last 30 days. The company delivered positive earnings surprises in the last four reported quarters, with the average beat being 9.5%.  

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Corning Inc.

Corning is benefiting from the secular drivers of the fiber optics business, primarily the increasing use of mobile devices that require efficient data transfer and networking systems. Samsung has recently deployed GLW’s most-advanced cover material Corning Gorilla Armor 2 into its flagship Galaxy S25 Ultra devices. 

This will likely drive net sales growth of GLW. The growing adoption of innovative optical connectivity products for AI applications is expected to be a key growth driver. GLW has an Earnings ESP of +2.05%. The company will report on Jan. 29 before the opening bell. 

For fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $3.76 billion, suggesting an increase of 14.9% year over year and earnings per share of $0.56, indicating an improvement of 43.6% year over year. 

The Zacks Consensus Estimate for fourth-quarter 2024 earnings remained the same in the last 60 days. The company delivered positive earnings surprises in three out of the last four reported quarters, with the average beat being 2.3%.  

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Automatic Data Processing Inc.

Automatic Data Processing aspires to grow on the back of its three-tier business strategy and use its transformation initiatives to innovate and expand margins. Acquisitions have been pivotal in ADP’s ability to operate across borders. ADP is eye candy for dividend-seeking investors. 

The recent rise in the current ratio suggests a robust liquidity position for ADP. Meanwhile, rising expenses due to acquisitions and investments are worrisome and can affect profitability. ADP faces high competition, which shoots talent costs sky-high and can affect the company’s growth. ADP has an Earnings ESP of +1.15%. The company will report on Jan. 29 before the opening bell. 

For second-quarter fiscal 2025, the Zacks Consensus Estimate currently shows revenues of $5 billion, suggesting an increase of 6.4% year over year and earnings per share of $2.27, indicating an improvement of 6.6% year over year. 

The Zacks Consensus Estimate for second-quarter fiscal 2025 earnings remained the same in the last 60 days. The company delivered positive earnings surprises in the last four reported quarters, with the average beat being 3.2%.

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