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Want Better Returns? Don't Ignore These 2 Retail-Wholesale Stocks Set to Beat Earnings

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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.

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 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. Dick's Sporting Goods (DKS) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $2.45 a share, just six days from its upcoming earnings release on May 25, 2022.

DKS has an Earnings ESP figure of 0.74%, which, as explained above, is calculated by taking the percentage difference between the $2.45 Most Accurate Estimate and the Zacks Consensus Estimate of $2.43.

DKS is part of a big group of Retail-Wholesale stocks that boast a positive ESP, and investors may want to take a look at Alibaba (BABA) as well.

Alibaba is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 26, 2022. BABA's Most Accurate Estimate sits at $1.08 a share seven days from its next earnings release.

For Alibaba, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.06 is 2.21%.

Because both stocks hold a positive Earnings ESP, DKS and BABA 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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DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
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