Yahoo Finance Why Investors Need to Take Advantage of These 2 Auto-Tires-Trucks Stocks Now
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.
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Paccar (PCAR) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $2.20 a share, just four days from its upcoming earnings release on April 30, 2024.
By taking the percentage difference between the $2.20 Most Accurate Estimate and the $2.17 Zacks Consensus Estimate, Paccar has an Earnings ESP of 1.25%.
PCAR is one of just a large database of Auto-Tires-Trucks stocks with positive ESPs. Another solid-looking stock is Polaris Inc (PII).
Polaris Inc, which is readying to report earnings on July 23, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.33 a share, and PII is 88 days out from its next earnings report.
The Zacks Consensus Estimate for Polaris Inc is $2.23, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 4.3%.
PCAR and PII'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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PACCAR Inc. (PCAR) : Free Stock Analysis Report
Polaris Inc. (PII) : Free Stock Analysis Report