Yahoo Finance These 2 Construction Stocks Could Beat Earnings: Why They Should Be on Your Radar
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
2 Stocks to Add to Your Watchlist
The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
The final step today is to look at a stock that meets our ESP qualifications. United Rentals (URI) earns a Zacks Rank #2 13 days from its next quarterly earnings release on April 24, 2024, and its Most Accurate Estimate comes in at $8.88 a share.
United Rentals' Earnings ESP sits at 5.74%, which, as explained above, is calculated by taking the percentage difference between the $8.88 Most Accurate Estimate and the Zacks Consensus Estimate of $8.39.
URI is one of just a large database of Construction stocks with positive ESPs. Another solid-looking stock is Eagle Materials (EXP).
Slated to report earnings on May 16, 2024, Eagle Materials holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2.82 a share 35 days from its next quarterly update.
For Eagle Materials, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.77 is 1.95%.
URI and EXP's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Rentals, Inc. (URI) : Free Stock Analysis Report
Eagle Materials Inc (EXP) : Free Stock Analysis Report
