How to Find Strong Retail-Wholesale 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, 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. Kohl's (KSS) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.34 a share, just 19 days from its upcoming earnings release on November 21, 2023.
KSS has an Earnings ESP figure of 9.17%, which, as explained above, is calculated by taking the percentage difference between the $0.34 Most Accurate Estimate and the Zacks Consensus Estimate of $0.31.
KSS is part of a big group of Retail-Wholesale stocks that boast a positive ESP, and investors may want to take a look at BJ's Restaurants (BJRI) as well.
BJ's Restaurants is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on February 15, 2024. BJRI's Most Accurate Estimate sits at $0.28 a share 105 days from its next earnings release.
For BJ's Restaurants, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.27 is 1.4%.
KSS and BJRI's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
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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Kohl's Corporation (KSS) : Free Stock Analysis Report
BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
