These 2 Retail-Wholesale Stocks Could Beat Earnings: Why They Should Be on Your Radar
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.
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. Walmart (WMT) earns a Zacks Rank #2 14 days from its next quarterly earnings release on November 16, 2023, and its Most Accurate Estimate comes in at $1.52 a share.
WMT has an Earnings ESP figure of 1.02%, which, as explained above, is calculated by taking the percentage difference between the $1.52 Most Accurate Estimate and the Zacks Consensus Estimate of $1.50.
WMT is just one of a large group of Retail-Wholesale stocks with a positive ESP figure. AutoZone (AZO) is another qualifying stock you may want to consider.
AutoZone, which is readying to report earnings on December 5, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $31.32 a share, and AZO is 33 days out from its next earnings report.
AutoZone's Earnings ESP figure currently stands at 2.61% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $30.52.
WMT and AZO'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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Walmart Inc. (WMT) : Free Stock Analysis Report
AutoZone, Inc. (AZO) : Free Stock Analysis Report
