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.
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 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. UnitedHealth Group (UNH) earns a Zacks Rank #3 14 days from its next quarterly earnings release on January 13, 2023, and its Most Accurate Estimate comes in at $5.19 a share.
By taking the percentage difference between the $5.19 Most Accurate Estimate and the $5.17 Zacks Consensus Estimate, UnitedHealth Group has an Earnings ESP of 0.28%.
UNH is part of a big group of Medical stocks that boast a positive ESP, and investors may want to take a look at Pfizer (PFE) as well.
Pfizer, which is readying to report earnings on February 14, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.12 a share, and PFE is 46 days out from its next earnings report.
Pfizer's Earnings ESP figure currently stands at 3.06% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.09.
UNH and PFE'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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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
