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

·2-min read

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

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, 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. Dillard's (DDS) earns a Zacks Rank #3 two days from its next quarterly earnings release on May 11, 2023, and its Most Accurate Estimate comes in at $9.63 a share.

Dillard's' Earnings ESP sits at 6.21%, which, as explained above, is calculated by taking the percentage difference between the $9.63 Most Accurate Estimate and the Zacks Consensus Estimate of $9.07.

DDS is just one of a large group of Retail-Wholesale stocks with a positive ESP figure. Chipotle Mexican Grill (CMG) is another qualifying stock you may want to consider.

Chipotle Mexican Grill, which is readying to report earnings on July 25, 2023, sits at a Zacks Rank #1 (Strong Buy) right now. It's Most Accurate Estimate is currently $12.17 a share, and CMG is 77 days out from its next earnings report.

Chipotle Mexican Grill's Earnings ESP figure currently stands at 1.47% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $11.99.

Because both stocks hold a positive Earnings ESP, DDS and CMG 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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Dillard's, Inc. (DDS) : Free Stock Analysis Report

Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report

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