Yahoo Finance These 2 Auto-Tires-Trucks Stocks Could Beat Earnings: Why They Should Be on Your Radar
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, 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. Tesla (TSLA) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $0.90 a share 30 days away from its upcoming earnings release on April 19, 2023.
TSLA has an Earnings ESP figure of 4.76%, which, as explained above, is calculated by taking the percentage difference between the $0.90 Most Accurate Estimate and the Zacks Consensus Estimate of $0.86.
TSLA is just one of a large group of Auto-Tires-Trucks stocks with a positive ESP figure. Paccar (PCAR) is another qualifying stock you may want to consider.
Paccar is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 25, 2023. PCAR's Most Accurate Estimate sits at $1.71 a share 36 days from its next earnings release.
For Paccar, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.71 is 0.22%.
TSLA and PCAR'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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Tesla, Inc. (TSLA) : Free Stock Analysis Report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
