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Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Computer and Technology Names

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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 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. Analog Devices (ADI) earns a Zacks Rank #2 12 days from its next quarterly earnings release on May 18, 2022, and its Most Accurate Estimate comes in at $2.17 a share.

By taking the percentage difference between the $2.17 Most Accurate Estimate and the $2.12 Zacks Consensus Estimate, Analog Devices has an Earnings ESP of 2.17%.

ADI is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Teradyne (TER).

Teradyne is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on July 26, 2022. TER's Most Accurate Estimate sits at $1.14 a share 81 days from its next earnings release.

Teradyne's Earnings ESP figure currently stands at 0.43% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.14.

ADI and TER'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
 
Analog Devices, Inc. (ADI) : Free Stock Analysis Report
 
Teradyne, Inc. (TER) : Free Stock Analysis Report
 
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