How to Boost Your Portfolio with Top Finance Stocks Set to Beat Earnings
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.
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 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 last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. First Citizens BancShares (FCNCA) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at $49.42 a share 30 days away from its upcoming earnings release on January 25, 2024.
First Citizens BancShares' Earnings ESP sits at 1.8%, which, as explained above, is calculated by taking the percentage difference between the $49.42 Most Accurate Estimate and the Zacks Consensus Estimate of $48.55.
FCNCA is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at Western Alliance (WAL) as well.
Western Alliance, which is readying to report earnings on January 23, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.03 a share, and WAL is 28 days out from its next earnings report.
For Western Alliance, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.93 is 5%.
Because both stocks hold a positive Earnings ESP, FCNCA and WAL 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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First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report
Western Alliance Bancorporation (WAL) : Free Stock Analysis Report
