Australia markets closed

    -26.10 (-0.39%)
  • ASX 200

    -28.20 (-0.43%)

    -0.0091 (-1.32%)
  • OIL

    +2.55 (+2.41%)
  • GOLD

    +1.50 (+0.08%)

    +485.56 (+1.74%)
  • CMC Crypto 200

    -2.43 (-0.58%)

    -0.0047 (-0.72%)

    -0.0078 (-0.71%)
  • NZX 50

    -115.54 (-1.06%)

    +38.24 (+0.33%)
  • FTSE

    -0.63 (-0.01%)
  • Dow Jones

    +254.00 (+0.83%)
  • DAX

    +29.26 (+0.23%)
  • Hang Seng

    -137.10 (-0.62%)
  • NIKKEI 225

    -457.42 (-1.73%)

Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Consumer Discretionary Names

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

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.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive 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.

The final step today is to look at a stock that meets our ESP qualifications. Walt Disney (DIS) earns a Zacks Rank #3 two days from its next quarterly earnings release on May 11, 2022, and its Most Accurate Estimate comes in at $1.24 a share.

DIS has an Earnings ESP figure of 3.87%, which, as explained above, is calculated by taking the percentage difference between the $1.24 Most Accurate Estimate and the Zacks Consensus Estimate of $1.20.

DIS is one of just a large database of Consumer Discretionary stocks with positive ESPs. Another solid-looking stock is A-Mark Precious Metals (AMRK).

Slated to report earnings on September 8, 2022, A-Mark Precious Metals holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.79 a share 122 days from its next quarterly update.

For A-Mark Precious Metals, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.50 is 19.73%.

DIS and AMRK's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

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 >>

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
The Walt Disney Company (DIS) : Free Stock Analysis Report
AMark Precious Metals, Inc. (AMRK) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting