How to Find Strong Transportation Stocks Slated for Positive Earnings Surprises
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these 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. International Seaways (INSW) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $3.21 a share, just eight days from its upcoming earnings release on May 5, 2023.
By taking the percentage difference between the $3.21 Most Accurate Estimate and the $2.96 Zacks Consensus Estimate, International Seaways has an Earnings ESP of 8.45%.
INSW is one of just a large database of Transportation stocks with positive ESPs. Another solid-looking stock is Eagle Bulk Shipping (EGLE).
Eagle Bulk Shipping is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 4, 2023. EGLE's Most Accurate Estimate sits at $0.05 a share seven days from its next earnings release.
Eagle Bulk Shipping's Earnings ESP figure currently stands at 137.04% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of -$0.14.
INSW and EGLE'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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International Seaways Inc. (INSW) : Free Stock Analysis Report
Eagle Bulk Shipping Inc. (EGLE) : Free Stock Analysis Report
