Yahoo Finance These 2 Transportation Stocks Could Beat Earnings: Why They Should Be on Your Radar
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.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these 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. American Airlines (AAL) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at -$0.26 a share, just seven days from its upcoming earnings release on April 25, 2024.
American Airlines' Earnings ESP sits at 6.51%, which, as explained above, is calculated by taking the percentage difference between the -$0.26 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.28.
AAL is one of just a large database of Transportation stocks with positive ESPs. Another solid-looking stock is Frontline (FRO).
Frontline, which is readying to report earnings on May 29, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.84 a share, and FRO is 41 days out from its next earnings report.
For Frontline, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.70 is 19.43%.
AAL and FRO'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 >>
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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Frontline PLC (FRO) : Free Stock Analysis Report
