Yahoo Finance These 2 Business Services Stocks Could Beat Earnings: Why They Should Be on Your Radar
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.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
2 Stocks to Add to Your Watchlist
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.
The final step today is to look at a stock that meets our ESP qualifications. Confluent (CFLT) earns a Zacks Rank #3 six days from its next quarterly earnings release on May 7, 2024, and its Most Accurate Estimate comes in at $0.04 a share.
Confluent's Earnings ESP sits at 150%, which, as explained above, is calculated by taking the percentage difference between the $0.04 Most Accurate Estimate and the Zacks Consensus Estimate of $0.02.
CFLT is just one of a large group of Business Services stocks with a positive ESP figure. APi (APG) is another qualifying stock you may want to consider.
Slated to report earnings on May 2, 2024, APi holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.33 a share one day from its next quarterly update.
APi's Earnings ESP figure currently stands at 2.06% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.32.
CFLT and APG'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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Confluent, Inc. (CFLT) : Free Stock Analysis Report
APi Group Corporation (APG) : Free Stock Analysis Report
