Yahoo Finance How to Find Strong Finance Stocks Slated for Positive Earnings Surprises
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
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.
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. Mid-America Apartment Communities (MAA) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $2.28 a share, just one day from its upcoming earnings release on April 26, 2023.
MAA has an Earnings ESP figure of 1.19%, which, as explained above, is calculated by taking the percentage difference between the $2.28 Most Accurate Estimate and the Zacks Consensus Estimate of $2.25.
MAA is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at Prologis (PLD) as well.
Prologis, which is readying to report earnings on July 17, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.68 a share, and PLD is 83 days out from its next earnings report.
For Prologis, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.67 is 0.67%.
MAA and PLD'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 >>
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Mid-America Apartment Communities, Inc. (MAA) : Free Stock Analysis Report
Prologis, Inc. (PLD) : Free Stock Analysis Report
