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Want Better Returns? Don't Ignore These 2 Retail-Wholesale 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.

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.


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. Tractor Supply (TSCO) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.82 a share, just 20 days from its upcoming earnings release on April 25, 2024.

By taking the percentage difference between the $1.82 Most Accurate Estimate and the $1.70 Zacks Consensus Estimate, Tractor Supply has an Earnings ESP of 7.15%.

TSCO is one of just a large database of Retail-Wholesale stocks with positive ESPs. Another solid-looking stock is Darden Restaurants (DRI).

Darden Restaurants, which is readying to report earnings on June 27, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.62 a share, and DRI is 83 days out from its next earnings report.

Darden Restaurants' Earnings ESP figure currently stands at 0.2% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.62.

TSCO and DRI'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 >>

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

Tractor Supply Company (TSCO) : Free Stock Analysis Report

Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report

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Zacks Investment Research