Yahoo Finance Want Better Returns? Don't Ignore These 2 Industrial Products Stocks Set to Beat Earnings
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 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. Zebra Technologies (ZBRA) earns a Zacks Rank #3 27 days from its next quarterly earnings release on May 2, 2023, and its Most Accurate Estimate comes in at $4.04 a share.
ZBRA has an Earnings ESP figure of 3.06%, which, as explained above, is calculated by taking the percentage difference between the $4.04 Most Accurate Estimate and the Zacks Consensus Estimate of $3.92.
ZBRA is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Cintas (CTAS) as well.
Cintas is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on July 13, 2023. CTAS' Most Accurate Estimate sits at $3.19 a share 99 days from its next earnings release.
Cintas' Earnings ESP figure currently stands at 0.31% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $3.18.
ZBRA and CTAS' 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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Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report
Cintas Corporation (CTAS) : Free Stock Analysis Report
