Yahoo Finance How to Find Strong Consumer Discretionary Stocks Slated for Positive Earnings Surprises
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.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
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. Sony (SONY) earns a Zacks Rank #3 13 days from its next quarterly earnings release on May 14, 2024, and its Most Accurate Estimate comes in at $0.85 a share.
Sony's Earnings ESP sits at 2%, which, as explained above, is calculated by taking the percentage difference between the $0.85 Most Accurate Estimate and the Zacks Consensus Estimate of $0.83.
SONY is part of a big group of Consumer Discretionary stocks that boast a positive ESP, and investors may want to take a look at Hasbro (HAS) as well.
Hasbro, which is readying to report earnings on August 1, 2024, sits at a Zacks Rank #2 (Buy) right now. It's Most Accurate Estimate is currently $0.75 a share, and HAS is 92 days out from its next earnings report.
Hasbro's Earnings ESP figure currently stands at 1.89% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.74.
Because both stocks hold a positive Earnings ESP, SONY and HAS 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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Sony Corporation (SONY) : Free Stock Analysis Report
Hasbro, Inc. (HAS) : Free Stock Analysis Report
