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How to Boost Your Portfolio with Top Aerospace Stocks Set to Beat Earnings

Zacks Equity Research
·2 min read

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.

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The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. TransDigm Group (TDG) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $7.46 a share 29 days away from its upcoming earnings release on May 14, 2024.

By taking the percentage difference between the $7.46 Most Accurate Estimate and the $7.36 Zacks Consensus Estimate, TransDigm Group has an Earnings ESP of 1.25%.

TDG is just one of a large group of Aerospace stocks with a positive ESP figure. Leidos (LDOS) is another qualifying stock you may want to consider.

Leidos, which is readying to report earnings on April 30, 2024, sits at a Zacks Rank #2 (Buy) right now. It's Most Accurate Estimate is currently $1.66 a share, and LDOS is 15 days out from its next earnings report.

For Leidos, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.65 is 0.38%.

Because both stocks hold a positive Earnings ESP, TDG and LDOS 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 >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research