Yahoo Finance These 2 Computer and Technology 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 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. Applied Materials (AMAT) earns a Zacks Rank #3 three days from its next quarterly earnings release on November 16, 2023, and its Most Accurate Estimate comes in at $2 a share.
AMAT has an Earnings ESP figure of 0.86%, which, as explained above, is calculated by taking the percentage difference between the $2 Most Accurate Estimate and the Zacks Consensus Estimate of $1.98.
AMAT is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Wix.com (WIX).
Slated to report earnings on February 28, 2024, Wix.com holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.92 a share 107 days from its next quarterly update.
The Zacks Consensus Estimate for Wix.com is $0.74, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 25.62%.
AMAT and WIX'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 >>
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Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
Wix.com Ltd. (WIX) : Free Stock Analysis Report
