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, 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. PROG Holdings (PRG) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.71 a share, just six days from its upcoming earnings release on February 21, 2024.
PROG Holdings' Earnings ESP sits at 5.97%, which, as explained above, is calculated by taking the percentage difference between the $0.71 Most Accurate Estimate and the Zacks Consensus Estimate of $0.67.
PRG is just one of a large group of Finance stocks with a positive ESP figure. SL Green (SLG) is another qualifying stock you may want to consider.
Slated to report earnings on April 17, 2024, SL Green holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2.04 a share 62 days from its next quarterly update.
SL Green's Earnings ESP figure currently stands at 10.76% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.84.
Because both stocks hold a positive Earnings ESP, PRG and SLG 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 >>
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Aaron's Holdings Company, Inc. (PRG) : Free Stock Analysis Report
SL Green Realty Corporation (SLG) : Free Stock Analysis Report
