Yahoo Finance Why Investors Need to Take Advantage of These 2 Medical 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.
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 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.
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. Hologic (HOLX) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.98 a share, just eight days from its upcoming earnings release on May 2, 2024.
Hologic's Earnings ESP sits at 0.34%, which, as explained above, is calculated by taking the percentage difference between the $0.98 Most Accurate Estimate and the Zacks Consensus Estimate of $0.97.
HOLX is just one of a large group of Medical stocks with a positive ESP figure. Cardinal Health (CAH) is another qualifying stock you may want to consider.
Slated to report earnings on May 2, 2024, Cardinal Health holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.98 a share eight days from its next quarterly update.
Cardinal Health's Earnings ESP figure currently stands at 1.11% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.95.
HOLX and CAH'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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Hologic, Inc. (HOLX) : Free Stock Analysis Report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
