Yahoo Finance Want Better Returns? Don't Ignore These 2 Finance Stocks Set to Beat Earnings
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
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 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.
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Citigroup (C) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.36 a share, just 30 days from its upcoming earnings release on January 13, 2023.
Citigroup's Earnings ESP sits at 6.25%, which, as explained above, is calculated by taking the percentage difference between the $1.36 Most Accurate Estimate and the Zacks Consensus Estimate of $1.28.
C is one of just a large database of Finance stocks with positive ESPs. Another solid-looking stock is Gladstone Capital (GLAD).
Slated to report earnings on February 1, 2023, Gladstone Capital holds a #1 (Strong Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.24 a share 49 days from its next quarterly update.
For Gladstone Capital, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.23 is 2.17%.
Because both stocks hold a positive Earnings ESP, C and GLAD 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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Citigroup Inc. (C) : Free Stock Analysis Report
Gladstone Capital Corporation (GLAD) : Free Stock Analysis Report
