Yahoo Finance How to Boost Your Portfolio with Top Industrial Products Stocks Set to Beat Earnings
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.
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 Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the 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. Deere (DE) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $7.93 a share, just one day from its upcoming earnings release on May 16, 2024.
DE has an Earnings ESP figure of 0.82%, which, as explained above, is calculated by taking the percentage difference between the $7.93 Most Accurate Estimate and the Zacks Consensus Estimate of $7.86.
DE is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Amcor (AMCR) as well.
Amcor is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on August 21, 2024. AMCR's Most Accurate Estimate sits at $0.21 a share 98 days from its next earnings release.
Amcor's Earnings ESP figure currently stands at 1.24% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.20.
Because both stocks hold a positive Earnings ESP, DE and AMCR 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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Deere & Company (DE) : Free Stock Analysis Report
Amcor PLC (AMCR) : Free Stock Analysis Report
