Yahoo Finance Want Better Returns? Don't Ignore These 2 Medical Stocks Set to Beat Earnings
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.
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. Twist Bioscience (TWST) earns a Zacks Rank #3 11 days from its next quarterly earnings release on August 2, 2024, and its Most Accurate Estimate comes in at -$0.78 a share.
TWST has an Earnings ESP figure of 1.68%, which, as explained above, is calculated by taking the percentage difference between the -$0.78 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.79.
TWST is just one of a large group of Medical stocks with a positive ESP figure. UnitedHealth Group (UNH) is another qualifying stock you may want to consider.
UnitedHealth Group, which is readying to report earnings on October 11, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $7.09 a share, and UNH is 81 days out from its next earnings report.
The Zacks Consensus Estimate for UnitedHealth Group is $7.08, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.12%.
Because both stocks hold a positive Earnings ESP, TWST and UNH could potentially post earnings beats in their next reports.
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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Twist Bioscience Corporation (TWST) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
