Yahoo Finance Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Finance Names
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.
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 Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Pebblebrook Hotel (PEB) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.18 a share, just seven days from its upcoming earnings release on April 23, 2024.
Pebblebrook Hotel's Earnings ESP sits at 12.5%, which, as explained above, is calculated by taking the percentage difference between the $0.18 Most Accurate Estimate and the Zacks Consensus Estimate of $0.16.
PEB is just one of a large group of Finance stocks with a positive ESP figure. Federated Hermes (FHI) is another qualifying stock you may want to consider.
Federated Hermes, which is readying to report earnings on April 25, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.89 a share, and FHI is nine days out from its next earnings report.
For Federated Hermes, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.87 is 1.45%.
Because both stocks hold a positive Earnings ESP, PEB and FHI 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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Pebblebrook Hotel Trust (PEB) : Free Stock Analysis Report
Federated Hermes, Inc. (FHI) : Free Stock Analysis Report
