Why Investors Need to Take Advantage of These 2 Industrial Products 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.
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 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.
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. Caterpillar (CAT) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $5.15 a share, just 29 days from its upcoming earnings release on April 25, 2024.
Caterpillar's Earnings ESP sits at 1.06%, which, as explained above, is calculated by taking the percentage difference between the $5.15 Most Accurate Estimate and the Zacks Consensus Estimate of $5.10.
CAT is just one of a large group of Industrial Products stocks with a positive ESP figure. Agco (AGCO) is another qualifying stock you may want to consider.
Agco, which is readying to report earnings on May 7, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.40 a share, and AGCO is 41 days out from its next earnings report.
Agco's Earnings ESP figure currently stands at 3.69% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.31.
CAT and AGCO's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
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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Caterpillar Inc. (CAT) : Free Stock Analysis Report
AGCO Corporation (AGCO) : Free Stock Analysis Report
