Yahoo Finance Want Better Returns? Don't Ignore These 2 Computer and Technology 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.
The final step today is to look at a stock that meets our ESP qualifications. JOYY (YY) earns a Zacks Rank #3 one day from its next quarterly earnings release on May 30, 2023, and its Most Accurate Estimate comes in at $0.53 a share.
By taking the percentage difference between the $0.53 Most Accurate Estimate and the $0.38 Zacks Consensus Estimate, JOYY has an Earnings ESP of 39.47%.
YY is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Zoom Video Communications (ZM).
Zoom Video Communications, which is readying to report earnings on August 28, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.05 a share, and ZM is 91 days out from its next earnings report.
The Zacks Consensus Estimate for Zoom Video Communications is $1.05, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.43%.
YY and ZM's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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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JOYY Inc. Sponsored ADR (YY) : Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
