Want Better Returns? Don't Ignore These 2 Basic Materials 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 Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
The final step today is to look at a stock that meets our ESP qualifications. Huntsman (HUN) earns a Zacks Rank #3 four days from its next quarterly earnings release on November 4, 2022, and its Most Accurate Estimate comes in at $0.75 a share.
HUN has an Earnings ESP figure of 3.59%, which, as explained above, is calculated by taking the percentage difference between the $0.75 Most Accurate Estimate and the Zacks Consensus Estimate of $0.72.
HUN is part of a big group of Basic Materials stocks that boast a positive ESP, and investors may want to take a look at Brigham Minerals (MNRL) as well.
Slated to report earnings on November 3, 2022, Brigham Minerals holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.71 a share three days from its next quarterly update.
For Brigham Minerals, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.67 is 6.34%.
HUN and MNRL'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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Huntsman Corporation (HUN) : Free Stock Analysis Report
Brigham Minerals, Inc. (MNRL) : Free Stock Analysis Report
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