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Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Medical Names

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.

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 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 final step today is to look at a stock that meets our ESP qualifications. GSK (GSK) earns a Zacks Rank #3 30 days from its next quarterly earnings release on April 26, 2023, and its Most Accurate Estimate comes in at $0.87 a share.

GSK has an Earnings ESP figure of 2.96%, which, as explained above, is calculated by taking the percentage difference between the $0.87 Most Accurate Estimate and the Zacks Consensus Estimate of $0.85.

GSK is part of a big group of Medical stocks that boast a positive ESP, and investors may want to take a look at Eli Lilly (LLY) as well.

Eli Lilly is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 27, 2023. LLY's Most Accurate Estimate sits at $1.84 a share 31 days from its next earnings release.

The Zacks Consensus Estimate for Eli Lilly is $1.67, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 9.93%.

GSK and LLY'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

GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report

Eli Lilly and Company (LLY) : Free Stock Analysis Report

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Zacks Investment Research