How to Boost Your Portfolio with Top Transportation 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 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.
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. FedEx (FDX) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $4.30 a share, just five days from its upcoming earnings release on December 19, 2023.
By taking the percentage difference between the $4.30 Most Accurate Estimate and the $4.14 Zacks Consensus Estimate, FedEx has an Earnings ESP of 3.99%.
FDX is just one of a large group of Transportation stocks with a positive ESP figure. Genco Shipping & Trading (GNK) is another qualifying stock you may want to consider.
Slated to report earnings on February 28, 2024, Genco Shipping & Trading holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.44 a share 76 days from its next quarterly update.
For Genco Shipping & Trading, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.32 is 37.5%.
FDX and GNK'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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FedEx Corporation (FDX) : Free Stock Analysis Report
Genco Shipping & Trading Limited (GNK) : Free Stock Analysis Report
