Yahoo Finance How to Boost Your Portfolio with Top Consumer Staples 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.
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, 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 #2 right now and its Most Accurate Estimate sits at $1.06 a share, just 13 days from its upcoming earnings release on December 20, 2022.
General Mills' Earnings ESP sits at 0.24%, which, as explained above, is calculated by taking the percentage difference between the $1.06 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. Dutch Bros (BROS) is another qualifying stock you may want to consider.
Slated to report earnings on March 7, 2023, Dutch Bros holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.06 a share 90 days from its next quarterly update.
For Dutch Bros, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.05 is 14.21%.
GIS and BROS' positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
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 >>
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General Mills, Inc. (GIS) : Free Stock Analysis Report
Dutch Bros Inc. (BROS) : Free Stock Analysis Report
