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Why Investors Need to Take Advantage of These 2 Consumer Staples Stocks Now

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.

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. General Mills (GIS) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.07 a share, just seven days from its upcoming earnings release on September 18, 2024.

GIS has an Earnings ESP figure of 1.92%, which, as explained above, is calculated by taking the percentage difference between the $1.07 Most Accurate Estimate and the Zacks Consensus Estimate of $1.05.

GIS is just one of a large group of Consumer Staples stocks with a positive ESP figure. Altria (MO) is another qualifying stock you may want to consider.

Altria, which is readying to report earnings on October 24, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.36 a share, and MO is 43 days out from its next earnings report.

For Altria, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.36 is 0.3%.

Because both stocks hold a positive Earnings ESP, GIS and MO 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

General Mills, Inc. (GIS) : Free Stock Analysis Report

Altria Group, Inc. (MO) : Free Stock Analysis Report

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Zacks Investment Research