How to Boost Your Portfolio with Top Industrial Products 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.
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 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. Stanley Black & Decker (SWK) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at $0.85 a share two days away from its upcoming earnings release on October 27, 2023.
By taking the percentage difference between the $0.85 Most Accurate Estimate and the $0.84 Zacks Consensus Estimate, Stanley Black & Decker has an Earnings ESP of 1.84%.
SWK is one of just a large database of Industrial Products stocks with positive ESPs. Another solid-looking stock is Ingersoll Rand (IR).
Slated to report earnings on November 1, 2023, Ingersoll Rand holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.70 a share seven days from its next quarterly update.
The Zacks Consensus Estimate for Ingersoll Rand is $0.70, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.36%.
SWK and IR'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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Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
