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.
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 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.
The final step today is to look at a stock that meets our ESP qualifications. Cintas (CTAS) earns a Zacks Rank #2 nine days from its next quarterly earnings release on September 25, 2024, and its Most Accurate Estimate comes in at $1.01 a share.
CTAS has an Earnings ESP figure of 0.74%, which, as explained above, is calculated by taking the percentage difference between the $1.01 Most Accurate Estimate and the Zacks Consensus Estimate of $1.
CTAS is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Stanley Black & Decker (SWK) as well.
Stanley Black & Decker, which is readying to report earnings on October 25, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.03 a share, and SWK is 39 days out from its next earnings report.
Stanley Black & Decker's Earnings ESP figure currently stands at 1.28% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.02.
Because both stocks hold a positive Earnings ESP, CTAS and SWK 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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Cintas Corporation (CTAS) : Free Stock Analysis Report
Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report
