Yahoo Finance Why Investors Need to Take Advantage of These 2 Finance Stocks Now
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.
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, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. Franklin Resources (BEN) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at $0.59 a share 12 days away from its upcoming earnings release on April 29, 2024.
By taking the percentage difference between the $0.59 Most Accurate Estimate and the $0.58 Zacks Consensus Estimate, Franklin Resources has an Earnings ESP of 0.94%.
BEN is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at Omega Healthcare Investors (OHI) as well.
Slated to report earnings on May 7, 2024, Omega Healthcare Investors holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.66 a share 20 days from its next quarterly update.
The Zacks Consensus Estimate for Omega Healthcare Investors is $0.65, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 1.85%.
Because both stocks hold a positive Earnings ESP, BEN and OHI 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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Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
Omega Healthcare Investors, Inc. (OHI) : Free Stock Analysis Report
