Want Better Returns? Don't Ignore These 2 Computer and Technology Stocks Set to Beat Earnings

·2 min read

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 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. Meta Platforms (META) earns a Zacks Rank #1 30 days from its next quarterly earnings release on April 26, 2023, and its Most Accurate Estimate comes in at $2.14 a share.

By taking the percentage difference between the $2.14 Most Accurate Estimate and the $2.03 Zacks Consensus Estimate, Meta Platforms has an Earnings ESP of 5.64%.

META is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Axcelis Technologies (ACLS).

Axcelis Technologies, which is readying to report earnings on May 3, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.25 a share, and ACLS is 37 days out from its next earnings report.

For Axcelis Technologies, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.16 is 7.76%.

META and ACLS' 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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Meta Platforms, Inc. (META) : Free Stock Analysis Report

Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report

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