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Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Finance Names

·2 min read

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

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 final step today is to look at a stock that meets our ESP qualifications. Zions (ZION) earns a Zacks Rank #3 21 days from its next quarterly earnings release on July 26, 2022, and its Most Accurate Estimate comes in at $1.37 a share.

Zions' Earnings ESP sits at 0.52%, which, as explained above, is calculated by taking the percentage difference between the $1.37 Most Accurate Estimate and the Zacks Consensus Estimate of $1.36.

ZION is one of just a large database of Finance stocks with positive ESPs. Another solid-looking stock is American International Group (AIG).

American International Group is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 4, 2022. AIG's Most Accurate Estimate sits at $1.25 a share 30 days from its next earnings release.

For American International Group, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.21 is 3.59%.

Because both stocks hold a positive Earnings ESP, ZION and AIG 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 >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Zions Bancorporation, N.A. (ZION) : Free Stock Analysis Report
American International Group, Inc. (AIG) : Free Stock Analysis Report
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Zacks Investment Research