Yahoo Finance How to Find Strong Industrial Products Stocks Slated for Positive Earnings Surprises
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.
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. Parker-Hannifin (PH) earns a Zacks Rank #3 nine days from its next quarterly earnings release on May 2, 2024, and its Most Accurate Estimate comes in at $6.18 a share.
By taking the percentage difference between the $6.18 Most Accurate Estimate and the $6.10 Zacks Consensus Estimate, Parker-Hannifin has an Earnings ESP of 1.35%.
PH is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Eaton (ETN) as well.
Eaton, which is readying to report earnings on April 30, 2024, sits at a Zacks Rank #2 (Buy) right now. It's Most Accurate Estimate is currently $2.32 a share, and ETN is seven days out from its next earnings report.
The Zacks Consensus Estimate for Eaton is $2.28, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 1.95%.
PH and ETN'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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Parker-Hannifin Corporation (PH) : Free Stock Analysis Report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
