Yahoo Finance How to Find Strong Transportation 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.
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 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. JetBlue Airways (JBLU) earns a Zacks Rank #3 four days from its next quarterly earnings release on April 25, 2023, and its Most Accurate Estimate comes in at -$0.36 a share.
By taking the percentage difference between the -$0.36 Most Accurate Estimate and the -$0.38 Zacks Consensus Estimate, JetBlue Airways has an Earnings ESP of 4.81%.
JBLU is just one of a large group of Transportation stocks with a positive ESP figure. Union Pacific (UNP) is another qualifying stock you may want to consider.
Union Pacific, which is readying to report earnings on July 20, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.86 a share, and UNP is 90 days out from its next earnings report.
The Zacks Consensus Estimate for Union Pacific is $2.85, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.26%.
JBLU and UNP'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 >>
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JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
