Yahoo Finance Why Investors Need to Take Advantage of These 2 Finance Stocks Now
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.
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 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. Morgan Stanley (MS) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $1.70 a share eight days away from its upcoming earnings release on April 16, 2024.
Morgan Stanley's Earnings ESP sits at 0.57%, which, as explained above, is calculated by taking the percentage difference between the $1.70 Most Accurate Estimate and the Zacks Consensus Estimate of $1.69.
MS is just one of a large group of Finance stocks with a positive ESP figure. Aflac (AFL) is another qualifying stock you may want to consider.
Aflac is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 1, 2024. AFL's Most Accurate Estimate sits at $1.66 a share 23 days from its next earnings release.
Aflac's Earnings ESP figure currently stands at 4.87% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.58.
Because both stocks hold a positive Earnings ESP, MS and AFL 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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Morgan Stanley (MS) : Free Stock Analysis Report
Aflac Incorporated (AFL) : Free Stock Analysis Report
