These 2 Industrial Products Stocks Could Beat Earnings: Why They Should Be on Your Radar
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
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.
The final step today is to look at a stock that meets our ESP qualifications. Terex (TEX) earns a Zacks Rank #3 22 days from its next quarterly earnings release on October 26, 2023, and its Most Accurate Estimate comes in at $1.73 a share.
Terex's Earnings ESP sits at 4.88%, which, as explained above, is calculated by taking the percentage difference between the $1.73 Most Accurate Estimate and the Zacks Consensus Estimate of $1.65.
TEX is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Vertex Energy (VTNR) as well.
Vertex Energy is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on November 14, 2023. VTNR's Most Accurate Estimate sits at $0.28 a share 41 days from its next earnings release.
For Vertex Energy, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of -$0.04 is 877.78%.
TEX and VTNR'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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Terex Corporation (TEX) : Free Stock Analysis Report
Vertex Energy, Inc (VTNR) : Free Stock Analysis Report
