Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Medical Names
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
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. Meridian Bioscience (VIVO) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $0.60 a share, just one day from its upcoming earnings release on May 6, 2022.
By taking the percentage difference between the $0.60 Most Accurate Estimate and the $0.48 Zacks Consensus Estimate, Meridian Bioscience has an Earnings ESP of 26.32%.
VIVO is part of a big group of Medical stocks that boast a positive ESP, and investors may want to take a look at Boston Scientific (BSX) as well.
Boston Scientific, which is readying to report earnings on July 26, 2022, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.43 a share, and BSX is 82 days out from its next earnings report.
Boston Scientific's Earnings ESP figure currently stands at 0.24% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.42.
VIVO and BSX'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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Meridian Bioscience Inc. (VIVO) : Free Stock Analysis Report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
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