Yahoo Finance These 2 Consumer Staples 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 last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. Constellation Brands (STZ) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $3.54 a share 29 days away from its upcoming earnings release on July 3, 2024.
STZ has an Earnings ESP figure of 1.52%, which, as explained above, is calculated by taking the percentage difference between the $3.54 Most Accurate Estimate and the Zacks Consensus Estimate of $3.49.
STZ is just one of a large group of Consumer Staples stocks with a positive ESP figure. Chewy (CHWY) is another qualifying stock you may want to consider.
Chewy, which is readying to report earnings on September 4, 2024, sits at a Zacks Rank #1 (Strong Buy) right now. It's Most Accurate Estimate is currently $0.23 a share, and CHWY is 92 days out from its next earnings report.
The Zacks Consensus Estimate for Chewy is $0.19, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 18.38%.
Because both stocks hold a positive Earnings ESP, STZ and CHWY 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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Constellation Brands Inc (STZ) : Free Stock Analysis Report
Chewy (CHWY) : Free Stock Analysis Report
