How to Find Strong Finance Stocks Slated for Positive Earnings Surprises
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.
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. Brandywine Realty Trust (BDN) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.29 a share, just 30 days from its upcoming earnings release on October 19, 2023.
By taking the percentage difference between the $0.29 Most Accurate Estimate and the $0.28 Zacks Consensus Estimate, Brandywine Realty Trust has an Earnings ESP of 0.35%.
BDN is one of just a large database of Finance stocks with positive ESPs. Another solid-looking stock is Realty Income Corp. (O).
Realty Income Corp. which is readying to report earnings on November 1, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.02 a share, and O is 43 days out from its next earnings report.
For Realty Income Corp. the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1 is 1.36%.
Because both stocks hold a positive Earnings ESP, BDN and O 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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Brandywine Realty Trust (BDN) : Free Stock Analysis Report
Realty Income Corporation (O) : Free Stock Analysis Report
