Yahoo Finance How to Boost Your Portfolio with Top Retail-Wholesale Stocks Set to Beat Earnings
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
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, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
The final step today is to look at a stock that meets our ESP qualifications. Dollar Tree (DLTR) earns a Zacks Rank #3 one day from its next quarterly earnings release on May 25, 2023, and its Most Accurate Estimate comes in at $1.53 a share.
DLTR has an Earnings ESP figure of 1.04%, which, as explained above, is calculated by taking the percentage difference between the $1.53 Most Accurate Estimate and the Zacks Consensus Estimate of $1.51.
DLTR is just one of a large group of Retail-Wholesale stocks with a positive ESP figure. McDonald's (MCD) is another qualifying stock you may want to consider.
McDonald's is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on July 25, 2023. MCD's Most Accurate Estimate sits at $2.75 a share 62 days from its next earnings release.
The Zacks Consensus Estimate for McDonald's is $2.75, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.17%.
DLTR and MCD'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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Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
