These 2 Construction Stocks Could Beat Earnings: Why They Should Be on Your Radar
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. Taylor Morrison Home (TMHC) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $1.70 a share, just six days from its upcoming earnings release on July 26, 2023.
Taylor Morrison Home's Earnings ESP sits at 2.41%, which, as explained above, is calculated by taking the percentage difference between the $1.70 Most Accurate Estimate and the Zacks Consensus Estimate of $1.66.
TMHC is one of just a large database of Construction stocks with positive ESPs. Another solid-looking stock is Vulcan Materials (VMC).
Slated to report earnings on August 3, 2023, Vulcan Materials holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2.03 a share 14 days from its next quarterly update.
For Vulcan Materials, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.92 is 5.94%.
TMHC and VMC'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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Taylor Morrison Home Corporation (TMHC) : Free Stock Analysis Report
Vulcan Materials Company (VMC) : Free Stock Analysis Report
