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

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.

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. Crocs (CROX) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.58 a share, just zero days from its upcoming earnings release on May 5, 2022.

By taking the percentage difference between the $1.58 Most Accurate Estimate and the $1.56 Zacks Consensus Estimate, Crocs has an Earnings ESP of 1.07%.

CROX is one of just a large database of Consumer Discretionary stocks with positive ESPs. Another solid-looking stock is Camping World (CWH).

Camping World, which is readying to report earnings on August 2, 2022, sits at a Zacks Rank #4 (Sell) right now. It's Most Accurate Estimate is currently $2.17 a share, and CWH is 89 days out from its next earnings report.

For Camping World, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.12 is 2.03%.

Because both stocks hold a positive Earnings ESP, CROX and CWH 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
Crocs, Inc. (CROX) : Free Stock Analysis Report
Camping World (CWH) : Free Stock Analysis Report
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