Yahoo Finance How to Boost Your Portfolio with Top Medical Stocks Set to Beat Earnings
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.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive 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.
The final step today is to look at a stock that meets our ESP qualifications. Regeneron (REGN) earns a Zacks Rank #3 two days from its next quarterly earnings release on February 3, 2023, and its Most Accurate Estimate comes in at $10.09 a share.
By taking the percentage difference between the $10.09 Most Accurate Estimate and the $9.68 Zacks Consensus Estimate, Regeneron has an Earnings ESP of 4.23%.
REGN is one of just a large database of Medical stocks with positive ESPs. Another solid-looking stock is Gilead Sciences (GILD).
Gilead Sciences, which is readying to report earnings on February 2, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.53 a share, and GILD is one day out from its next earnings report.
The Zacks Consensus Estimate for Gilead Sciences is $1.50, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 1.71%.
REGN and GILD's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
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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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report