Why Investors Need to Take Advantage of These 2 Medical Stocks Now
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.
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 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.
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. HealthEquity (HQY) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.60 a share, just five days from its upcoming earnings release on March 19, 2024.
HealthEquity's Earnings ESP sits at 10.2%, which, as explained above, is calculated by taking the percentage difference between the $0.60 Most Accurate Estimate and the Zacks Consensus Estimate of $0.55.
HQY is part of a big group of Medical stocks that boast a positive ESP, and investors may want to take a look at Novartis (NVS) as well.
Novartis is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 23, 2024. NVS' Most Accurate Estimate sits at $1.77 a share 40 days from its next earnings release.
Novartis' Earnings ESP figure currently stands at 2.61% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.73.
HQY and NVS' 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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HealthEquity, Inc. (HQY) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
