Zacks Earnings Preview: GameStop, Hormel Foods, Lowe's, Nordstrom and Payless ShoeSource.

CHICAGO -- Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes GameStop (NYSE: GME), Hormel Foods (NYSE: HRL), Lowe's (NYSE: LOW), Nordstrom (NYSE: JWN) and Payless ShoeSource (NYSE: PSS). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Earnings Preview is written by Charles Rotblut, CFA, Senior Market Analyst for Zacks.com.

Thanksgiving week is typically a slow period for the markets. Many professionals take the entire week off and earnings season is over. Plus, the markets operate on a holiday schedule. The major U.S. stock exchanges will be closed on Thursday and trading will end early on Friday (1 p.m. ET).

The Conference Board will release its October consumer confidence index on this morning. The University of Michigan will release its final October sentiment numbers on Thursday. And outside of the weekly initial jobless claims numbers, that's basically it on the economic front.

As of this morning, there are just 38 confirmed earnings reports for next week, nearly all being released on either Monday or Tuesday. Most of the profit reports will come from retailers, including Lowe's (NYSE: LOW), Nordstrom (NYSE: JWN) and GameStop (NYSE: GME). The latter company is notable because it is the only major retail chain to solely focus on the video games. Many analysts will be listening to the conference call to hear what GME has to say about the PlayStation 3 (released last Friday) and the Wii (released yesterday).

During the next several weeks, the number of companies featured as having the possibility to issue a positive or negative surprise will be limited. This is because of a seasonal lag in earnings reports.

Companies That Could Surprise During the Week of Nov 20-24

GameStop (NYSE: GME) will be attracting a good deal of attention because of the PlayStation 3 and the Wii. During the past month, third-quarter estimates have been revised upwards by a penny to 23 cents per share. U.S. supplies of the PlayStation 3 are limited to just 400,000 this weekend and one million by Christmas. This said, full-year earnings estimates for multiple video game makers have been rising. Therefore, what GME says about its outlook will have major influence on how the stock trades after it releases earnings data. GME has topped expectations during three of the last four quarters, most recently matching second-quarter forecasts. GameStop will report on Tuesday, Nov 21, before the open of trading.

Last week, Hormel Foods (NYSE: HRL) raised its guidance for fiscal fourth-quarter earnings to a range of 63 to 65 cents per share. The new forecast was above both the company's prior guidance and analysts' projections. (The consensus estimate has been adjusted upwards to 63 cents per share, with the most recent consensus at 64 cents per share.) CEO Jeffrey Ettinger credited an "exceptional finish" for HRL's Specialty Foods segment as well as better-than-expected results for pork and turkey. Ettinger's fiscal 2007 earnings guidance, of $2.15 to $2.25 per share, was also above analysts' forecasts. HRL has topped expectations during three out of the last four quarters.

Analysts raised their forecasts on Nordstrom (NYSE: JWN) following favorable October same-store sales data. The upscale department store chain saw sales at existing stores increase 10.7% last month. As result, the consensus estimate for third-quarter earnings was revised upwards by three cents to 50 cents per share. The most recent consensus is even more bullish at 51 cents. JWN has topped expectations during each of the past five quarters. Nordstrom will report on Monday, Nov 20, after the close of trading.

Payless ShoeSource (NYSE: PSS) recently guided for third-quarter earnings that were above analysts' forecasts. Based on October same-store sales growth of 5.2%, the company predicted that third-quarter profits from continuing operations would be in a range of 43 to 46 cents per share. Both of the covering analysts responded by raising their forecasts to 45 cents per share. PSS missed second-quarter earnings by five cents per share, but topped expectations during the previous three quarters. Payless ShoeSource will report on Tuesday, Nov 21, after the close of trading.

Want to turn earnings surprises into quick profits? Learn how by visiting http://at.zacks.com/?id=3206.

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