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Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Finance Names

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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. Capital One (COF) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $5.17 a share, just 28 days from its upcoming earnings release on July 21, 2022.

By taking the percentage difference between the $5.17 Most Accurate Estimate and the $5.11 Zacks Consensus Estimate, Capital One has an Earnings ESP of 1.1%.

COF is one of just a large database of Finance stocks with positive ESPs. Another solid-looking stock is Prudential (PRU).

Prudential is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 2, 2022. PRU's Most Accurate Estimate sits at $2.80 a share 40 days from its next earnings release.

Prudential's Earnings ESP figure currently stands at 1.16% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.77.

COF and PRU'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 >>


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.

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