Want Better Returns? Don't Ignore These 2 Finance 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.
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, 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.
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. Goldman Sachs (GS) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $9.35 a share, just 19 days from its upcoming earnings release on April 15, 2024.
By taking the percentage difference between the $9.35 Most Accurate Estimate and the $8.61 Zacks Consensus Estimate, Goldman Sachs has an Earnings ESP of 8.55%.
GS is one of just a large database of Finance stocks with positive ESPs. Another solid-looking stock is Citizens Financial Group (CFG).
Slated to report earnings on April 17, 2024, Citizens Financial Group holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.79 a share 21 days from its next quarterly update.
The Zacks Consensus Estimate for Citizens Financial Group is $0.76, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 3.66%.
Because both stocks hold a positive Earnings ESP, GS and CFG 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 Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report
