Yahoo Finance These 2 Business Services Stocks Could Beat Earnings: Why They Should Be on Your Radar
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 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. Global Payments (GPN) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $2.61 a share, just six days from its upcoming earnings release on May 1, 2024.
GPN has an Earnings ESP figure of 1.74%, which, as explained above, is calculated by taking the percentage difference between the $2.61 Most Accurate Estimate and the Zacks Consensus Estimate of $2.57.
GPN is one of just a large database of Business Services stocks with positive ESPs. Another solid-looking stock is Confluent (CFLT).
Confluent is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 7, 2024. CFLT's Most Accurate Estimate sits at $0.04 a share 12 days from its next earnings release.
Confluent's Earnings ESP figure currently stands at 150% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.02.
Because both stocks hold a positive Earnings ESP, GPN and CFLT 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
Global Payments Inc. (GPN) : Free Stock Analysis Report
Confluent, Inc. (CFLT) : Free Stock Analysis Report
