Advertisement
New Zealand markets closed
  • NZX 50

    12,325.60
    -3.84 (-0.03%)
     
  • NZD/USD

    0.6011
    -0.0039 (-0.64%)
     
  • NZD/EUR

    0.5519
    -0.0024 (-0.44%)
     
  • ALL ORDS

    8,209.20
    -63.50 (-0.77%)
     
  • ASX 200

    7,971.60
    -64.90 (-0.81%)
     
  • OIL

    80.25
    -2.57 (-3.10%)
     
  • GOLD

    2,402.80
    -53.60 (-2.18%)
     
  • NASDAQ

    19,522.62
    -182.47 (-0.93%)
     
  • FTSE

    8,155.72
    -49.17 (-0.60%)
     
  • Dow Jones

    40,287.53
    -377.49 (-0.93%)
     
  • DAX

    18,171.93
    -182.83 (-1.00%)
     
  • Hang Seng

    17,417.68
    -360.73 (-2.03%)
     
  • NIKKEI 225

    40,063.79
    -62.56 (-0.16%)
     
  • NZD/JPY

    94.6330
    -0.5090 (-0.53%)
     

How to Boost Your Portfolio with Top Consumer Discretionary Stocks Set to Beat Earnings

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

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.

ADVERTISEMENT

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. Netflix (NFLX) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $4.79 a share, just 30 days from its upcoming earnings release on July 17, 2024.

Netflix's Earnings ESP sits at 1.91%, which, as explained above, is calculated by taking the percentage difference between the $4.79 Most Accurate Estimate and the Zacks Consensus Estimate of $4.70.

NFLX is part of a big group of Consumer Discretionary stocks that boast a positive ESP, and investors may want to take a look at MGM Resorts (MGM) as well.

MGM Resorts is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 7, 2024. MGM's Most Accurate Estimate sits at $0.73 a share 51 days from its next earnings release.

The Zacks Consensus Estimate for MGM Resorts is $0.68, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 8.13%.

Because both stocks hold a positive Earnings ESP, NFLX and MGM 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

Netflix, Inc. (NFLX) : Free Stock Analysis Report

MGM Resorts International (MGM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research