Yahoo Finance These 2 Business Services Stocks Could Beat Earnings: Why They Should Be on Your Radar
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.
2 Stocks to Add to Your Watchlist
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
The final step today is to look at a stock that meets our ESP qualifications. Shift4 Payments (FOUR) earns a Zacks Rank #1 one day from its next quarterly earnings release on May 4, 2023, and its Most Accurate Estimate comes in at $0.49 a share.
Shift4 Payments' Earnings ESP sits at 21.25%, which, as explained above, is calculated by taking the percentage difference between the $0.49 Most Accurate Estimate and the Zacks Consensus Estimate of $0.40.
FOUR is just one of a large group of Business Services stocks with a positive ESP figure. Omnicom (OMC) is another qualifying stock you may want to consider.
Omnicom is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on July 18, 2023. OMC's Most Accurate Estimate sits at $1.81 a share 76 days from its next earnings release.
For Omnicom, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.79 is 1.3%.
Because both stocks hold a positive Earnings ESP, FOUR and OMC could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
