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 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 last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. Tenet Healthcare (THC) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $1.44 a share 29 days away from its upcoming earnings release on April 23, 2024.
THC has an Earnings ESP figure of 1.58%, which, as explained above, is calculated by taking the percentage difference between the $1.44 Most Accurate Estimate and the Zacks Consensus Estimate of $1.41.
THC is part of a big group of Medical stocks that boast a positive ESP, and investors may want to take a look at Teladoc (TDOC) as well.
Teladoc, which is readying to report earnings on April 24, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently -$0.47 a share, and TDOC is 30 days out from its next earnings report.
The Zacks Consensus Estimate for Teladoc is -$0.47, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.09%.
THC and TDOC'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 >>
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Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report
