Yahoo Finance Want Better Returns? Don't Ignore These 2 Medical 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.
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 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. Exact Sciences (EXAS) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at -$0.79 a share, just 28 days from its upcoming earnings release on February 28, 2023.
EXAS has an Earnings ESP figure of 11.73%, which, as explained above, is calculated by taking the percentage difference between the -$0.79 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.90.
EXAS is just one of a large group of Medical stocks with a positive ESP figure. UnitedHealth Group (UNH) is another qualifying stock you may want to consider.
Slated to report earnings on April 13, 2023, UnitedHealth Group holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $6.25 a share 72 days from its next quarterly update.
UnitedHealth Group's Earnings ESP figure currently stands at 0.57% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $6.22.
Because both stocks hold a positive Earnings ESP, EXAS and UNH could potentially post earnings beats in their next reports.
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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Exact Sciences Corporation (EXAS) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
