Why Investors Need to Take Advantage of These 2 Construction Stocks Now
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.
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. Taylor Morrison Home (TMHC) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $1.68 a share, just 22 days from its upcoming earnings release on July 26, 2023.
By taking the percentage difference between the $1.68 Most Accurate Estimate and the $1.66 Zacks Consensus Estimate, Taylor Morrison Home has an Earnings ESP of 0.9%.
TMHC is part of a big group of Construction stocks that boast a positive ESP, and investors may want to take a look at KB Home (KBH) as well.
KB Home is a Zacks Rank #1 (Strong Buy) stock, and is getting ready to report earnings on September 20, 2023. KBH's Most Accurate Estimate sits at $1.39 a share 78 days from its next earnings release.
KB Home's Earnings ESP figure currently stands at 3.07% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.35.
TMHC and KBH'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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Taylor Morrison Home Corporation (TMHC) : Free Stock Analysis Report
KB Home (KBH) : Free Stock Analysis Report
