Yahoo Finance Why Investors Need to Take Advantage of These 2 Computer and Technology 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.
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 last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. GoDaddy (GDDY) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $1.05 a share 16 days away from its upcoming earnings release on May 2, 2024.
GDDY has an Earnings ESP figure of 8.01%, which, as explained above, is calculated by taking the percentage difference between the $1.05 Most Accurate Estimate and the Zacks Consensus Estimate of $0.97.
GDDY is just one of a large group of Computer and Technology stocks with a positive ESP figure. Salesforce.com (CRM) is another qualifying stock you may want to consider.
Salesforce.com is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 29, 2024. CRM's Most Accurate Estimate sits at $2.38 a share 43 days from its next earnings release.
For Salesforce.com, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.38 is 0.15%.
Because both stocks hold a positive Earnings ESP, GDDY and CRM 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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GoDaddy Inc. (GDDY) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
