Yahoo Finance Want Better Returns? Don't Ignore These 2 Industrial Products Stocks Set to Beat Earnings
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
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 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.
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. Ingersoll Rand (IR) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $0.53 a share, just 13 days from its upcoming earnings release on May 3, 2023.
IR has an Earnings ESP figure of 2.32%, which, as explained above, is calculated by taking the percentage difference between the $0.53 Most Accurate Estimate and the Zacks Consensus Estimate of $0.52.
IR is one of just a large database of Industrial Products stocks with positive ESPs. Another solid-looking stock is Illinois Tool Works (ITW).
Illinois Tool Works, which is readying to report earnings on May 2, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.22 a share, and ITW is 12 days out from its next earnings report.
Illinois Tool Works' Earnings ESP figure currently stands at 1.37% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.19.
IR and ITW'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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Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
