Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Retail-Wholesale Names
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.
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, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
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. AutoZone (AZO) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $26.34 a share, just 19 days from its upcoming earnings release on May 24, 2022.
AZO has an Earnings ESP figure of 2.51%, which, as explained above, is calculated by taking the percentage difference between the $26.34 Most Accurate Estimate and the Zacks Consensus Estimate of $25.70.
AZO is part of a big group of Retail-Wholesale stocks that boast a positive ESP, and investors may want to take a look at Boot Barn (BOOT) as well.
Slated to report earnings on May 10, 2022, Boot Barn holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.33 a share five days from its next quarterly update.
For Boot Barn, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.30 is 2.44%.
AZO and BOOT'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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AutoZone, Inc. (AZO) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
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