Yahoo Finance Why Investors Need to Take Advantage of These 2 Industrial Products Stocks Now
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
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 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.
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. Stanley Black & Decker (SWK) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $0.56 a share six days away from its upcoming earnings release on May 2, 2024.
SWK has an Earnings ESP figure of 1.37%, which, as explained above, is calculated by taking the percentage difference between the $0.56 Most Accurate Estimate and the Zacks Consensus Estimate of $0.55.
SWK is one of just a large database of Industrial Products stocks with positive ESPs. Another solid-looking stock is AZZ (AZZ).
Slated to report earnings on July 5, 2024, AZZ holds a #1 (Strong Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.31 a share 70 days from its next quarterly update.
For AZZ, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.30 is 0.64%.
Because both stocks hold a positive Earnings ESP, SWK and AZZ 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
Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report
AZZ Inc. (AZZ) : Free Stock Analysis Report
