Want Better Returns? Don't Ignore These 2 Transportation Stocks Set to Beat Earnings

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.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

2 Stocks to Add to Your Watchlist

The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.

The final step today is to look at a stock that meets our ESP qualifications. Star Bulk Carriers (SBLK) earns a Zacks Rank #2 one day from its next quarterly earnings release on May 24, 2022, and its Most Accurate Estimate comes in at $1.44 a share.

SBLK has an Earnings ESP figure of 1.77%, which, as explained above, is calculated by taking the percentage difference between the $1.44 Most Accurate Estimate and the Zacks Consensus Estimate of $1.41.

SBLK is just one of a large group of Transportation stocks with a positive ESP figure. XPO Logistics (XPO) is another qualifying stock you may want to consider.

Slated to report earnings on July 27, 2022, XPO Logistics holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.49 a share 65 days from its next quarterly update.

For XPO Logistics, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.48 is 0.2%.

Because both stocks hold a positive Earnings ESP, SBLK and XPO 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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Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report
 
XPO Logistics, Inc. (XPO) : Free Stock Analysis Report
 
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