Want Better Returns? Don't Ignore These 2 Consumer Staples Stocks Set to Beat Earnings
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 Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the 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. Estee Lauder (EL) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.56 a share, just 14 days from its upcoming earnings release on May 3, 2023.
Estee Lauder's Earnings ESP sits at 16.29%, which, as explained above, is calculated by taking the percentage difference between the $0.56 Most Accurate Estimate and the Zacks Consensus Estimate of $0.48.
EL is part of a big group of Consumer Staples stocks that boast a positive ESP, and investors may want to take a look at Philip Morris (PM) as well.
Philip Morris, which is readying to report earnings on April 20, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.35 a share, and PM is one day out from its next earnings report.
Philip Morris' Earnings ESP figure currently stands at 1.86% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.33.
Because both stocks hold a positive Earnings ESP, EL and PM 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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The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
