Yahoo Finance Why Investors Need to Take Advantage of These 2 Computer and Technology Stocks Now
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 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. Pinterest (PINS) earns a Zacks Rank #3 four days from its next quarterly earnings release on July 30, 2024, and its Most Accurate Estimate comes in at $0.30 a share.
Pinterest's Earnings ESP sits at 7.14%, which, as explained above, is calculated by taking the percentage difference between the $0.30 Most Accurate Estimate and the Zacks Consensus Estimate of $0.28.
PINS is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Western Digital (WDC) as well.
Slated to report earnings on July 31, 2024, Western Digital holds a #1 (Strong Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.66 a share five days from its next quarterly update.
For Western Digital, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.26 is 31.75%.
Because both stocks hold a positive Earnings ESP, PINS and WDC 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 >>
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
Pinterest, Inc. (PINS) : Free Stock Analysis Report
Western Digital Corporation (WDC) : Free Stock Analysis Report
