Yahoo Finance These 2 Computer and Technology Stocks Could Beat Earnings: Why They Should Be on Your Radar
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
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. United States Cellular (USM) earns a Zacks Rank #1 two days from its next quarterly earnings release on May 3, 2024, and its Most Accurate Estimate comes in at $0.35 a share.
United States Cellular's Earnings ESP sits at 36.36%, which, as explained above, is calculated by taking the percentage difference between the $0.35 Most Accurate Estimate and the Zacks Consensus Estimate of $0.26.
USM is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is AT&T (T).
AT&T, which is readying to report earnings on July 24, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.57 a share, and T is 84 days out from its next earnings report.
AT&T's Earnings ESP figure currently stands at 0.07% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.57.
USM and T'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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United States Cellular Corporation (USM) : Free Stock Analysis Report
AT&T Inc. (T) : Free Stock Analysis Report
