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How to Boost Your Portfolio with Top Aerospace Stocks Set to Beat Earnings

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.

The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.

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.

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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. Northrop Grumman (NOC) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $5.93 a share 21 days away from its upcoming earnings release on April 25, 2024.

NOC has an Earnings ESP figure of 1.65%, which, as explained above, is calculated by taking the percentage difference between the $5.93 Most Accurate Estimate and the Zacks Consensus Estimate of $5.83.

NOC is just one of a large group of Aerospace stocks with a positive ESP figure. TransDigm Group (TDG) is another qualifying stock you may want to consider.

Slated to report earnings on May 14, 2024, TransDigm Group holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $7.48 a share 40 days from its next quarterly update.

For TransDigm Group, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $7.37 is 1.47%.

NOC and TDG's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

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

Northrop Grumman Corporation (NOC) : Free Stock Analysis Report

Transdigm Group Incorporated (TDG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research