Yahoo Finance Want Better Returns? Don't Ignore These 2 Computer and Technology 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, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
The final step today is to look at a stock that meets our ESP qualifications. Silicon Motion (SIMO) earns a Zacks Rank #3 22 days from its next quarterly earnings release on August 1, 2024, and its Most Accurate Estimate comes in at $1 a share.
Silicon Motion's Earnings ESP sits at 8.99%, which, as explained above, is calculated by taking the percentage difference between the $1 Most Accurate Estimate and the Zacks Consensus Estimate of $0.92.
SIMO is just one of a large group of Computer and Technology stocks with a positive ESP figure. Shopify (SHOP) is another qualifying stock you may want to consider.
Shopify, which is readying to report earnings on August 7, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.23 a share, and SHOP is 28 days out from its next earnings report.
For Shopify, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.21 is 11.72%.
SIMO and SHOP'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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Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
