Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Finance 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 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.
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. American International Group (AIG) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at $1.29 a share 29 days away from its upcoming earnings release on February 15, 2023.
By taking the percentage difference between the $1.29 Most Accurate Estimate and the $1.14 Zacks Consensus Estimate, American International Group has an Earnings ESP of 13.33%.
AIG is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at Huntington Bancshares (HBAN) as well.
Huntington Bancshares, which is readying to report earnings on January 20, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.41 a share, and HBAN is three days out from its next earnings report.
The Zacks Consensus Estimate for Huntington Bancshares is $0.41, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 1.92%.
AIG and HBAN'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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American International Group, Inc. (AIG) : Free Stock Analysis Report
Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report
