A few companies have come up their first-quarter earnings results, with Alcoa (AA) being the first among the S&P 500 members to report after the closing bell on Monday. The overall earnings picture for the first quarter appears gloomy with estimates remaining low. In fact, over the last three months, Q1 estimates have fallen significantly, thanks mainly to the persistent oil price weakness. The unfavorable earnings picture is expected to continue through the first half of this year, with growth unlikely before late 2016.

Discouraging Q1 Earnings Estimates

Going by the expected quarterly performances for Q1, the year-over-year earnings for the S&P 500 will likely fall by 10.3%, which is worse than the 6.4% decline in the prior quarter. Most importantly, the S&P 500 index will witness earnings decrease for the fourth consecutive quarter.     

Among the dampeners of the first quarter, the most prominent is the slump in oil prices during the first six weeks of the year. A stronger dollar that hit hard the export-oriented companies and China-related woes are added risks to the upcoming results.

In details, among the 16 Zacks sectors, negative earnings growth are anticipated to be witnessed by 11, including Technology and Finance that hold significant weight in the overall index. Moreover, the Energy sector, which has been dragging the market down for a length of time, will likely decline the most among all the sectors.      

What is most striking is that Q1 estimates experienced the highest magnitude of negative earnings revisions among the recent comparable quarters. In fact, 15 out of the 16 Zacks sectors suffered declining estimates since the start of the period.

5 Stocks with Rising Estimates

In spite of all the hiccups in Q1, we have cherry picked stocks with the help of our screening methodology that have been able to bear the turmoil. These stocks with northward earnings estimates are poised to impress when they report later this month. The stocks not only have a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) but also witnessed at least 5% rise in Q1 earnings estimates over four weeks. 

CEMEX S.A.B. de C.V. (CX - Snapshot Report): San Pedro Garza García, Mexico-located CEMEX is the marketer and distributor of ready-mix concrete, cement and other construction equipment. The company – expected to report earnings on Apr 21 – carries a Zacks Rank #1. The stock witnessed upward earnings estimate revision of 28.6% in the last four weeks.

Westmoreland Coal Co. (WLB - Snapshot Report): Englewood, CO-based Westmoreland is basically an energy player. The company – expected to report earnings on Apr 22, 2016 – carries a Zacks Rank #1. The stock also witnessed upward earnings estimates revision of 11.7% in the last four weeks.

Calpine Corp. (CPN - Snapshot Report):Houston, TX-basedCalpine is a wholesale power generation player. The company is the owner and the operator of North America located natural gas-fired and geothermal power units. This Zacks Rank #2 company is expected to report earnings on Apr 29. The stock witnessed an upward earnings estimate revision of 72.2% in the last four weeks.

Epizyme Inc. (EPZM - Analyst Report): Cambridge, MA-based Epizyme is a development-stage biopharmaceutical company, focused on bringing novel epigenetic therapies for the treatment of cancer to market. The company is expected to report earnings on Apr 26. The Zacks Rank #2 stock witnessed upward earnings estimate revision of 14.2% in the last four weeks.

Edison International (EIX - Analyst Report): California-based Edison International is the parent holding company of Southern California Edison (SCE). Edison International is also the parent company of subsidiaries that are engaged in competitive businesses related to the delivery or use of electricity. The company is expected to report earnings on Apr 26. The Zacks Rank #2 stock witnessed upward earnings estimate revision of 12.4% in the last four weeks.