Progressing through earnings season some lesser-known names are set to report their first-quarter results next week after big tech companies highlighted this week’s earnings lineup.
Still, a few of these companies are top-rated Zacks stocks at the moment. Here are two of these stocks that investors may want to consider with their quarterly reports approaching on Monday, May 1.
BlackRock Capital Investment (BKCC)
Starting out is BlackRock Capital Investment which lands a Zacks Rank #2 (Buy) at the moment and its Financial-SBIC & Commercial Industry is in the top 15% of over 250 Zacks industries.
BlackRock Capital provides responsive, creative, and flexible capital solutions to middle-market companies. These flexible financial solutions include senior and junior secured, unsecured, and subordinated debt securities and loans, and equity securities.
Q1 Preview: BlackRock Capital’s first-quarter earnings are expected to jump 22% year over at $0.11 per share. The Zacks Expected Surprise Prediction (ESP) indicates BlackRock Capital should reach its bottom line expectations with the Most Accurate Estimate also having Q1 EPS at $0.11.
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First-quarter sales are forecasted to climb 49% from the prior year quarter at $18.12 million. Reaching these lofty quarterly estimates could give a boost to BlackRock Capital stock and earnings estimate revisions are up for the current quarter, fiscal 2023, and FY24.
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The rising earnings estimates are starting to make BlackRock Capital stock look more attractive and perhaps undervalued trading at $3 per share and 6.9X forward earnings. This is on par with the industry average and nicely below the S&P 500’s 19.1X.
Plus, BlackRock Capital stock trades 43% below its decade-long high of 12.3X and at a 34% discount to the median of 10.5X.
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CVR Energy (CVI)
Among the Zacks Oils and Energy sector, CVR Energy is starting to stand out with a Zacks Rank #1 (Strong Buy), and its Oil and Gas-Refining and Marketing Industry is in the top 29% of all Zacks industries.
While CVR may not be as known as some of the larger integrated oil companies it has a unique niche in its industry as a refiner and marketer of high-value transportation fuels and is a producer of ammonia and urea ammonia nitrate fertilizers.
Q1 Preview: Impressively, CVR’s first-quarter earnings are expected to soar to $0.95 per share compared to EPS of $0.02 in Q1 2022. This is despite sales being forecasted to dip -6% from the prior-year quarter at $2.23 billion. The Zacks ESP indicates CVR should reach its Q1 earnings expectations with the Most Accurate Estimate also having EPS at $0.95.
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Furthermore, annual earnings estimates are noticeably higher for CVR and this is starting to make its stock look very attractive from a price-to-earnings perspective.
Trading at $26 a share, CVR stock has an forward earnings multiple of 6.5X. This is on par with the industry average and nicely beneath the benchmark. More intriguing, CVR stock trades well below its absurd decade-long highs and at a 43% discount to the median of 11.6X.
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Bottom Line
BlackRock Capital Investment and CVR Energy stock are making the case for bargain territory ahead of their first-quarter reports. Both companies have a unique niche in their respective industries and the rising earnings estimates are a good sign there may be more upside in these stocks.
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CVR Energy Inc. (CVI) : Free Stock Analysis Report
BlackRock Capital Investment Corporation (BKCC) : Free Stock Analysis Report
