These 2 Computer and Technology Stocks Could Beat Earnings: Why They Should Be on Your Radar
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
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 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. Pinterest (PINS) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $0.23 a share 28 days away from its upcoming earnings release on October 26, 2023.
PINS has an Earnings ESP figure of 10.28%, which, as explained above, is calculated by taking the percentage difference between the $0.23 Most Accurate Estimate and the Zacks Consensus Estimate of $0.21.
PINS is just one of a large group of Computer and Technology stocks with a positive ESP figure. BlackLine (BL) is another qualifying stock you may want to consider.
Slated to report earnings on November 2, 2023, BlackLine holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.40 a share 35 days from its next quarterly update.
The Zacks Consensus Estimate for BlackLine is $0.36, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 10.16%.
PINS and BL'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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Pinterest, Inc. (PINS) : Free Stock Analysis Report
BlackLine (BL) : Free Stock Analysis Report
