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.
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 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. Syndax Pharmaceuticals (SNDX) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at -$0.61 a share, just 27 days from its upcoming earnings release on March 7, 2023.
By taking the percentage difference between the -$0.61 Most Accurate Estimate and the -$0.64 Zacks Consensus Estimate, Syndax Pharmaceuticals has an Earnings ESP of 4.39%.
SNDX is just one of a large group of Medical stocks with a positive ESP figure. Idexx Laboratories (IDXX) is another qualifying stock you may want to consider.
Idexx Laboratories is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on May 3, 2023. IDXX's Most Accurate Estimate sits at $2.40 a share 84 days from its next earnings release.
The Zacks Consensus Estimate for Idexx Laboratories is $2.38, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.66%.
SNDX and IDXX'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 >>
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Syndax Pharmaceuticals, Inc. (SNDX) : Free Stock Analysis Report
IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report
