Yahoo Finance Why Investors Need to Take Advantage of These 2 Basic Materials Stocks Now
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.
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 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. Freeport-McMoRan (FCX) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.47 a share, just 14 days from its upcoming earnings release on April 21, 2023.
FCX has an Earnings ESP figure of 7.83%, which, as explained above, is calculated by taking the percentage difference between the $0.47 Most Accurate Estimate and the Zacks Consensus Estimate of $0.43.
FCX is just one of a large group of Basic Materials stocks with a positive ESP figure. United States Steel (X) is another qualifying stock you may want to consider.
Slated to report earnings on April 27, 2023, United States Steel holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.64 a share 20 days from its next quarterly update.
The Zacks Consensus Estimate for United States Steel is $0.49, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 30.47%.
FCX and X'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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report
United States Steel Corporation (X) : Free Stock Analysis Report
