How to Boost Your Portfolio with Top Consumer Discretionary Stocks Set to Beat Earnings
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.
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 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 final step today is to look at a stock that meets our ESP qualifications. Wynn Resorts (WYNN) earns a Zacks Rank #3 28 days from its next quarterly earnings release on November 8, 2023, and its Most Accurate Estimate comes in at $0.88 a share.
By taking the percentage difference between the $0.88 Most Accurate Estimate and the $0.75 Zacks Consensus Estimate, Wynn Resorts has an Earnings ESP of 18.1%.
WYNN is one of just a large database of Consumer Discretionary stocks with positive ESPs. Another solid-looking stock is Cinemark Holdings (CNK).
Cinemark Holdings is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on November 3, 2023. CNK's Most Accurate Estimate sits at $0.56 a share 23 days from its next earnings release.
Cinemark Holdings' Earnings ESP figure currently stands at 70.56% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.33.
WYNN and CNK'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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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
Cinemark Holdings Inc (CNK) : Free Stock Analysis Report
