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Why Investors Need to Take Advantage of These 2 Utilities Stocks Now

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

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.

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The final step today is to look at a stock that meets our ESP qualifications. NextEra Energy (NEE) earns a Zacks Rank #3 29 days from its next quarterly earnings release on July 23, 2024, and its Most Accurate Estimate comes in at $0.92 a share.

By taking the percentage difference between the $0.92 Most Accurate Estimate and the $0.90 Zacks Consensus Estimate, NextEra Energy has an Earnings ESP of 1.85%.

NEE is part of a big group of Utilities stocks that boast a positive ESP, and investors may want to take a look at Consolidated Edison (ED) as well.

Consolidated Edison is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on August 1, 2024. ED's Most Accurate Estimate sits at $0.56 a share 38 days from its next earnings release.

Consolidated Edison's Earnings ESP figure currently stands at 2.44% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.55.

Because both stocks hold a positive Earnings ESP, NEE and ED 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 >>

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

NextEra Energy, Inc. (NEE) : Free Stock Analysis Report

Consolidated Edison Inc (ED) : Free Stock Analysis Report

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Zacks Investment Research