Yahoo Finance How to Boost Your Portfolio with Top Finance Stocks Set to Beat Earnings
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
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.
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. Annaly Capital Management (NLY) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.75 a share, just 29 days from its upcoming earnings release on April 26, 2023.
By taking the percentage difference between the $0.75 Most Accurate Estimate and the $0.72 Zacks Consensus Estimate, Annaly Capital Management has an Earnings ESP of 4.17%.
NLY is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at Main Street Capital (MAIN) as well.
Main Street Capital is a Zacks Rank #1 (Strong Buy) stock, and is getting ready to report earnings on May 4, 2023. MAIN's Most Accurate Estimate sits at $0.97 a share 37 days from its next earnings release.
The Zacks Consensus Estimate for Main Street Capital is $0.97, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.17%.
NLY and MAIN'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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Annaly Capital Management Inc (NLY) : Free Stock Analysis Report
Main Street Capital Corporation (MAIN) : Free Stock Analysis Report
