Yahoo Finance Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Consumer Staples Names
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
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.
The final step today is to look at a stock that meets our ESP qualifications. Archer Daniels Midland (ADM) earns a Zacks Rank #1 26 days from its next quarterly earnings release on July 26, 2022, and its Most Accurate Estimate comes in at $1.75 a share.
ADM has an Earnings ESP figure of 3.8%, which, as explained above, is calculated by taking the percentage difference between the $1.75 Most Accurate Estimate and the Zacks Consensus Estimate of $1.69.
ADM is just one of a large group of Consumer Staples stocks with a positive ESP figure. Chewy (CHWY) is another qualifying stock you may want to consider.
Chewy, which is readying to report earnings on September 7, 2022, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently -$0.12 a share, and CHWY is 69 days out from its next earnings report.
The Zacks Consensus Estimate for Chewy is -$0.12, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 1.36%.
ADM and CHWY'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 >>
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Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
Chewy (CHWY) : Free Stock Analysis Report
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