These 2 Medical 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.
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 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.
The final step today is to look at a stock that meets our ESP qualifications. United Therapeutics (UTHR) earns a Zacks Rank #3 10 days from its next quarterly earnings release on February 23, 2023, and its Most Accurate Estimate comes in at $4.40 a share.
UTHR has an Earnings ESP figure of 6.86%, which, as explained above, is calculated by taking the percentage difference between the $4.40 Most Accurate Estimate and the Zacks Consensus Estimate of $4.12.
UTHR is just one of a large group of Medical stocks with a positive ESP figure. Edwards Lifesciences (EW) is another qualifying stock you may want to consider.
Slated to report earnings on April 25, 2023, Edwards Lifesciences holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.61 a share 71 days from its next quarterly update.
Edwards Lifesciences' Earnings ESP figure currently stands at 0.45% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.61.
Because both stocks hold a positive Earnings ESP, UTHR and EW could potentially post earnings beats in their next reports.
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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United Therapeutics Corporation (UTHR) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
