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Want Better Returns? Don't Ignore These 2 Retail-Wholesale Stocks Set to Beat Earnings

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.

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. Chipotle Mexican Grill (CMG) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $9.21 a share, just 29 days from its upcoming earnings release on October 25, 2022.

CMG has an Earnings ESP figure of 1.63%, which, as explained above, is calculated by taking the percentage difference between the $9.21 Most Accurate Estimate and the Zacks Consensus Estimate of $9.06.

CMG is one of just a large database of Retail-Wholesale stocks with positive ESPs. Another solid-looking stock is Home Depot (HD).

Home Depot, which is readying to report earnings on November 15, 2022, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $4.11 a share, and HD is 50 days out from its next earnings report.

Home Depot's Earnings ESP figure currently stands at 0.21% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $4.10.

CMG and HD'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
 
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
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