Yahoo Finance These 2 Industrial Products 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 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.
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. AZZ (AZZ) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $1.32 a share, just 22 days from its upcoming earnings release on July 5, 2024.
By taking the percentage difference between the $1.32 Most Accurate Estimate and the $1.31 Zacks Consensus Estimate, AZZ has an Earnings ESP of 0.76%.
AZZ is just one of a large group of Industrial Products stocks with a positive ESP figure. EnerSys (ENS) is another qualifying stock you may want to consider.
Slated to report earnings on August 14, 2024, EnerSys holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.97 a share 62 days from its next quarterly update.
The Zacks Consensus Estimate for EnerSys is $1.96, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.26%.
Because both stocks hold a positive Earnings ESP, AZZ and ENS could potentially post earnings beats in their next reports.
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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AZZ Inc. (AZZ) : Free Stock Analysis Report
Enersys (ENS) : Free Stock Analysis Report
