Want Better Returns? Don't Ignore These 2 Computer and Technology Stocks Set to Beat Earnings
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.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive 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. Qorvo (QRVO) earns a Zacks Rank #2 19 days from its next quarterly earnings release on November 1, 2023, and its Most Accurate Estimate comes in at $1.85 a share.
By taking the percentage difference between the $1.85 Most Accurate Estimate and the $1.77 Zacks Consensus Estimate, Qorvo has an Earnings ESP of 4.46%.
QRVO is just one of a large group of Computer and Technology stocks with a positive ESP figure. Dell Technologies (DELL) is another qualifying stock you may want to consider.
Slated to report earnings on November 20, 2023, Dell Technologies holds a #1 (Strong Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.49 a share 38 days from its next quarterly update.
For Dell Technologies, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.47 is 1.14%.
QRVO and DELL'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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Qorvo, Inc. (QRVO) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
