Yahoo Finance Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Computer and Technology Names
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
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 Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.
The final step today is to look at a stock that meets our ESP qualifications. Carrier Global (CARR) earns a Zacks Rank #2 16 days from its next quarterly earnings release on October 26, 2023, and its Most Accurate Estimate comes in at $0.82 a share.
CARR has an Earnings ESP figure of 5.31%, which, as explained above, is calculated by taking the percentage difference between the $0.82 Most Accurate Estimate and the Zacks Consensus Estimate of $0.78.
CARR is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Zscaler (ZS).
Zscaler is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on December 7, 2023. ZS' Most Accurate Estimate sits at $0.49 a share 58 days from its next earnings release.
Zscaler's Earnings ESP figure currently stands at 0.75% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.49.
Because both stocks hold a positive Earnings ESP, CARR and ZS 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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Carrier Global Corporation (CARR) : Free Stock Analysis Report
Zscaler, Inc. (ZS) : Free Stock Analysis Report
