Yahoo Finance How to Find Strong Medical Stocks Slated for Positive Earnings Surprises
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 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.
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. Alkermes (ALKS) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $0.77 a share 30 days away from its upcoming earnings release on April 24, 2024.
ALKS has an Earnings ESP figure of 12.26%, which, as explained above, is calculated by taking the percentage difference between the $0.77 Most Accurate Estimate and the Zacks Consensus Estimate of $0.68.
ALKS is one of just a large database of Medical stocks with positive ESPs. Another solid-looking stock is Thermo Fisher Scientific (TMO).
Thermo Fisher Scientific is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 24, 2024. TMO's Most Accurate Estimate sits at $4.71 a share 30 days from its next earnings release.
For Thermo Fisher Scientific, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $4.71 is 0.03%.
Because both stocks hold a positive Earnings ESP, ALKS and TMO 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 >>
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Alkermes plc (ALKS) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
