Want Better Returns? Don't Ignore These 2 Consumer Discretionary Stocks Set to Beat Earnings

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 last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. DraftKings (DKNG) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at -$0.86 a share one day away from its upcoming earnings release on August 5, 2022.

DKNG has an Earnings ESP figure of 1.29%, which, as explained above, is calculated by taking the percentage difference between the -$0.86 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.87.

DKNG is just one of a large group of Consumer Discretionary stocks with a positive ESP figure. Bassett Furniture (BSET) is another qualifying stock you may want to consider.

Bassett Furniture, which is readying to report earnings on September 29, 2022, sits at a Zacks Rank #1 (Strong Buy) right now. It's Most Accurate Estimate is currently $0.65 a share, and BSET is 56 days out from its next earnings report.

The Zacks Consensus Estimate for Bassett Furniture is $0.64, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 1.56%.

DKNG and BSET'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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DraftKings Inc. (DKNG) : Free Stock Analysis Report
 
Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report
 
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