Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Consumer Discretionary Names
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.
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.
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. Norwegian Cruise Line (NCLH) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $0.30 a share, just six days from its upcoming earnings release on August 1, 2023.
By taking the percentage difference between the $0.30 Most Accurate Estimate and the $0.27 Zacks Consensus Estimate, Norwegian Cruise Line has an Earnings ESP of 10.43%.
NCLH is just one of a large group of Consumer Discretionary stocks with a positive ESP figure. Boyd Gaming (BYD) is another qualifying stock you may want to consider.
Boyd Gaming, which is readying to report earnings on July 27, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.61 a share, and BYD is one day out from its next earnings report.
For Boyd Gaming, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.56 is 2.92%.
NCLH and BYD'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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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
