Yahoo Finance These 2 Consumer Discretionary Stocks Could Beat Earnings: Why They Should Be on Your Radar
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
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.
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Carnival (CCL) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0 a share, just eight days from its upcoming earnings release on June 25, 2024.
CCL has an Earnings ESP figure of 70.37%, which, as explained above, is calculated by taking the percentage difference between the $0 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.01.
CCL is just one of a large group of Consumer Discretionary stocks with a positive ESP figure. Norwegian Cruise Line (NCLH) is another qualifying stock you may want to consider.
Norwegian Cruise Line, which is readying to report earnings on August 6, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.35 a share, and NCLH is 50 days out from its next earnings report.
The Zacks Consensus Estimate for Norwegian Cruise Line is $0.34, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 2.51%.
CCL and NCLH'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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Carnival Corporation (CCL) : Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report