Advertisement
New Zealand markets closed
  • NZX 50

    11,946.43
    +143.15 (+1.21%)
     
  • NZD/USD

    0.5936
    +0.0002 (+0.03%)
     
  • ALL ORDS

    7,937.50
    -0.40 (-0.01%)
     
  • OIL

    83.47
    +0.11 (+0.13%)
     
  • GOLD

    2,337.40
    -4.70 (-0.20%)
     

How to Boost Your Portfolio with Top Consumer Staples 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.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these 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.

ADVERTISEMENT

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. Inter Parfums (IPAR) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at $0.34 a share 20 days away from its upcoming earnings release on February 28, 2023.

IPAR has an Earnings ESP figure of 13.33%, which, as explained above, is calculated by taking the percentage difference between the $0.34 Most Accurate Estimate and the Zacks Consensus Estimate of $0.30.

IPAR is one of just a large database of Consumer Staples stocks with positive ESPs. Another solid-looking stock is Kellogg (K).

Kellogg, which is readying to report earnings on February 9, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.87 a share, and K is one day out from its next earnings report.

The Zacks Consensus Estimate for Kellogg is $0.84, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 4.12%.

IPAR and K's 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 >>

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

Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report

Kellogg Company (K) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research