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These 2 Auto-Tires-Trucks Stocks Could Beat Earnings: Why They Should Be on Your Radar

Zacks Equity Research
·2 min read

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 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.

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The final step today is to look at a stock that meets our ESP qualifications. Tesla (TSLA) earns a Zacks Rank #3 21 days from its next quarterly earnings release on October 19, 2022, and its Most Accurate Estimate comes in at $1.03 a share.

By taking the percentage difference between the $1.03 Most Accurate Estimate and the $0.93 Zacks Consensus Estimate, Tesla has an Earnings ESP of 10.81%.

TSLA is part of a big group of Auto-Tires-Trucks stocks that boast a positive ESP, and investors may want to take a look at Genuine Parts (GPC) as well.

Slated to report earnings on October 20, 2022, Genuine Parts holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2.05 a share 22 days from its next quarterly update.

For Genuine Parts, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.03 is 0.82%.

TSLA and GPC'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 >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
Genuine Parts Company (GPC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research