Why Investors Need to Take Advantage of These 2 Finance 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.
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 Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.
The final step today is to look at a stock that meets our ESP qualifications. American Tower (AMT) earns a Zacks Rank #3 30 days from its next quarterly earnings release on April 24, 2024, and its Most Accurate Estimate comes in at $2.58 a share.
By taking the percentage difference between the $2.58 Most Accurate Estimate and the $2.56 Zacks Consensus Estimate, American Tower has an Earnings ESP of 0.74%.
AMT is just one of a large group of Finance stocks with a positive ESP figure. NNN REIT (NNN) is another qualifying stock you may want to consider.
NNN REIT, which is readying to report earnings on May 7, 2024, sits at a Zacks Rank #2 (Buy) right now. It's Most Accurate Estimate is currently $0.84 a share, and NNN is 43 days out from its next earnings report.
The Zacks Consensus Estimate for NNN REIT is $0.83, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.9%.
AMT and NNN's 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 >>
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
American Tower Corporation (AMT) : Free Stock Analysis Report
NNN REIT, Inc. (NNN) : Free Stock Analysis Report
