How to Boost Your Portfolio with Top Medical Stocks Set to Beat Earnings
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.
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Insulet (PODD) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $0.43 a share, just one day from its upcoming earnings release on November 2, 2023.
By taking the percentage difference between the $0.43 Most Accurate Estimate and the $0.40 Zacks Consensus Estimate, Insulet has an Earnings ESP of 6.61%.
PODD is just one of a large group of Medical stocks with a positive ESP figure. Shockwave Medical (SWAV) is another qualifying stock you may want to consider.
Shockwave Medical, which is readying to report earnings on November 6, 2023, sits at a Zacks Rank #1 (Strong Buy) right now. It's Most Accurate Estimate is currently $0.86 a share, and SWAV is five days out from its next earnings report.
The Zacks Consensus Estimate for Shockwave Medical is $0.81, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 6.07%.
Because both stocks hold a positive Earnings ESP, PODD and SWAV 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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Insulet Corporation (PODD) : Free Stock Analysis Report
ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report
