Barclays says earnings for these stocks could top expectations in the second half

Published Mon, Aug 29 202211:35 AM EDTUpdated Mon, Aug 29 20223:00 PM EDT

The recent market action and concern about next earnings season have many investors on edge. However, there are still opportunities to find winning names in this environment, according to Barclays. To be sure, the stock market is starting off the week down , right after the three major indexes suffered steep weekly losses. Investors are also worried about earnings for the second half of the year falling short of expectations. With that in mind, Barclays came up with names it believes could top earnings expectations in the second half of the year. The firm looked at large-cap, overweight-rated stocks that have had this fiscal year's EPS estimates revised higher over the last two months. The bank then filtered the list for Barclays FY1 EPS estimates that imply further upside from the current consensus estimate. It then narrowed the results to stocks that are trailing the S & P 500 in terms of share price returns year to date. Here are the top five stocks on Barclays' list. Liberty SiriusXM has 44% upside to Barclays' price target, as of Aug. 24. Barclays' EPS estimate for this fiscal year is $3.22, while the consensus is $3.18. The company beat earnings expectations for the second quarter. There's another 30% upside for eBay , according to Barclays. The firm estimates a fiscal-year EPS of $4.07, compared with a consensus estimate of $4.05. The e-commerce giant reported top- and bottom-line beats for its second quarter. It also recently announced the acquisition of trading card company TCGplayer and myFitment Group, an auto parts and accessories e-commerce platform. MercadoLibre could see 39% upside, based on Barclays' price target and an EPS of $8.12 this fiscal year. The consensus FY1 estimate is $6.89. The Latin America e-commerce company reported second-quarter revenue that came in above analyst expectations First American Financial has 47% upside and an EPS for FY1 of $6.42, according to Barclays. The consensus FY1 estimate is $6.24. The company reported second-quarter EPS of $1.97, compared with StreetAccount's estimate of $1.64. Finally, Barclays believes Fidelity National Financial has 73% upside. The firm has an FY1 EPS estimate of $6.40, compared with the $6.22 consensus estimate. Fidelity National Financial reported second-quarter adjusted EPS of $1.90, above StreetAccount's estimate of $1.61. The company also recently announced it was acquiring AllFirst Title Insurance Agency. — CNBC's Michael Bloom contributed reporting.

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