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

Zacks Equity Research
·2 min read

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

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.

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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. Amcor (AMCR) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.25 a share, just five days from its upcoming earnings release on August 17, 2022.

AMCR has an Earnings ESP figure of 2.08%, which, as explained above, is calculated by taking the percentage difference between the $0.25 Most Accurate Estimate and the Zacks Consensus Estimate of $0.24.

AMCR is one of just a large database of Industrial Products stocks with positive ESPs. Another solid-looking stock is CECO Environmental (CECE).

CECO Environmental, which is readying to report earnings on November 14, 2022, sits at a Zacks Rank #2 (Buy) right now. It's Most Accurate Estimate is currently $0.16 a share, and CECE is 94 days out from its next earnings report.

CECO Environmental's Earnings ESP figure currently stands at 18.52% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.14.

Because both stocks hold a positive Earnings ESP, AMCR and CECE 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
 
Amcor PLC (AMCR) : Free Stock Analysis Report
 
CECO Environmental Corp. (CECE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research