Yahoo Finance Want Better Returns? Don't Ignore These 2 Retail-Wholesale 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.
The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.
2 Stocks to Add to Your Watchlist
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.
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. Burlington Stores (BURL) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at $0.98 a share 13 days away from its upcoming earnings release on August 22, 2024.
BURL has an Earnings ESP figure of 5.62%, which, as explained above, is calculated by taking the percentage difference between the $0.98 Most Accurate Estimate and the Zacks Consensus Estimate of $0.93.
BURL is just one of a large group of Retail-Wholesale stocks with a positive ESP figure. Ross Stores (ROST) is another qualifying stock you may want to consider.
Slated to report earnings on August 15, 2024, Ross Stores holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.56 a share six days from its next quarterly update.
Ross Stores' Earnings ESP figure currently stands at 4.71% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.49.
BURL and ROST'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 >>
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Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
