Australia markets open in 6 hours 58 minutes

    -30.80 (-0.37%)

    -0.0006 (-0.09%)
  • ASX 200

    -21.40 (-0.27%)
  • OIL

    +0.34 (+0.41%)
  • GOLD

    +0.10 (+0.00%)
  • Bitcoin AUD

    -587.77 (-0.61%)
  • CMC Crypto 200

    -3.97 (-0.30%)

Should You Buy Usinas Siderurgicas (USNZY) Ahead of Earnings?

Investors are always looking for stocks that are poised to beat at earnings season and Usinas Siderurgicas de Minas Gerais SA USNZY may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Usinas Siderurgicas is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for USNZY in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at 4 cents per share for USNZY, compared to a broader Zacks Consensus Estimate of a loss of 1 cent per share. This suggests that analysts have very recently bumped up their estimates for USNZY, giving the stock a Zacks Earnings ESP of +900.00% heading into earnings season.

Usinas Siderurgicas de Minas Gerais SA Price and EPS Surprise

Usinas Siderurgicas de Minas Gerais SA Price and EPS Surprise
Usinas Siderurgicas de Minas Gerais SA Price and EPS Surprise

Usinas Siderurgicas de Minas Gerais SA price-eps-surprise | Usinas Siderurgicas de Minas Gerais SA Quote

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

Given that USNZY has a Zacks Rank #2 (Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Usinas Siderurgicas, and that a beat might be in the cards for the upcoming report.


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

Usinas Siderurgicas de Minas Gerais SA (USNZY) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research