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Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Finance Names

Zacks Equity Research
·2-min read

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.

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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. The Hartford (HIG) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $1.53 a share one day away from its upcoming earnings release on July 28, 2022.

By taking the percentage difference between the $1.53 Most Accurate Estimate and the $1.52 Zacks Consensus Estimate, The Hartford has an Earnings ESP of 0.4%.

HIG is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at Huntington Bancshares (HBAN) as well.

Slated to report earnings on October 27, 2022, Huntington Bancshares holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.39 a share 92 days from its next quarterly update.

For Huntington Bancshares, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.39 is 1.01%.

HIG and HBAN's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

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
 
The Hartford Financial Services Group, Inc. (HIG) : Free Stock Analysis Report
 
Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.