U.S. markets open in 5 hours 44 minutes

  • S&P Futures

    4,238.75
    -26.00 (-0.61%)
     

  • Dow Futures

    33,044.00
    -157.00 (-0.47%)
     

  • Nasdaq Futures

    14,609.00
    -105.50 (-0.72%)
     

  • Russell 2000 Futures

    1,725.70
    -16.20 (-0.93%)
     

  • Crude Oil

    88.51
    -0.72 (-0.81%)
     

  • Gold

    1,835.40
    -6.10 (-0.33%)
     

  • Silver

    21.19
    -0.18 (-0.85%)
     

  • EUR/USD

    1.0483
    +0.0014 (+0.14%)
     

  • 10-Yr Bond

    4.8020
    0.0000 (0.00%)
     

  • Vix

    20.73
    +0.95 (+4.80%)
     

  • GBP/USD

    1.2078
    +0.0001 (+0.01%)
     

  • USD/JPY

    148.7870
    -0.2710 (-0.18%)
     

  • Bitcoin USD

    27,421.46
    -138.96 (-0.50%)
     

  • CMC Crypto 200

    584.61
    -5.36 (-0.91%)
     

  • FTSE 100

    7,466.48
    -3.68 (-0.05%)
     

  • Nikkei 225

    30,526.88
    -711.06 (-2.28%)
     

How to Find Strong Retail-Wholesale Stocks Slated for Positive Earnings Surprises

Zacks Equity Research
·2 min read

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

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, 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.

The final step today is to look at a stock that meets our ESP qualifications. Advance Auto Parts (AAP) earns a Zacks Rank #3 one day from its next quarterly earnings release on August 23, 2022, and its Most Accurate Estimate comes in at $3.77 a share.

By taking the percentage difference between the $3.77 Most Accurate Estimate and the $3.75 Zacks Consensus Estimate, Advance Auto Parts has an Earnings ESP of 0.48%.

AAP is one of just a large database of Retail-Wholesale stocks with positive ESPs. Another solid-looking stock is Fastenal (FAST).

Slated to report earnings on October 11, 2022, Fastenal holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.48 a share 50 days from its next quarterly update.

Fastenal's Earnings ESP figure currently stands at 0.35% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.48.

AAP and FAST'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 >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
 
Fastenal Company (FAST) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research