Yahoo Finance How to Find Strong Aerospace Stocks Slated for Positive Earnings Surprises
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.
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. Huntington Ingalls (HII) earns a Zacks Rank #3 two days from its next quarterly earnings release on May 2, 2024, and its Most Accurate Estimate comes in at $3.51 a share.
HII has an Earnings ESP figure of 0.87%, which, as explained above, is calculated by taking the percentage difference between the $3.51 Most Accurate Estimate and the Zacks Consensus Estimate of $3.48.
HII is part of a big group of Aerospace stocks that boast a positive ESP, and investors may want to take a look at Northrop Grumman (NOC) as well.
Northrop Grumman, which is readying to report earnings on July 25, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $6.04 a share, and NOC is 86 days out from its next earnings report.
Northrop Grumman's Earnings ESP figure currently stands at 0.07% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $6.03.
HII and NOC'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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Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
